Thursday, August 2, 2012

The 30 Second Elevator Speech



When you initially pitch a stock to a portfolio manager, it is often conveyed verbally. Portfolio Managers are generally very busy so it is important that you learn how to pitch a stock in a short amount of time. Therefore, I suggest that aspiring analysts develop the skill of giving their stock pitches in a 30 second "elevator speech".  In those 30 seconds you should be able to communicate the two or three important bullet points that are key to understanding why a stock should be bought or sold. For example:


"I think you should buy Intel for the following three reasons: First..."
 
These bullet points generally do not cover the entire story, but they convey the key driving points of the idea. You should not expect the portfolio manager will be sold on your idea in those 30 seconds, but if the points are convincing it will start a conversation that could cause the PM to take action.

If you cannot convey a compelling pitch in that length of time, then revisit your thesis to make sure you are focused on the key drivers for the idea. If your bullet points are good but you are struggling with the delivery, just keep practicing. It will come to you.

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