What I Wish I Could Tell My Old-Equity-Analyst-Self
By Sallie Krawcheck
This article was originally published on Linkedin.
We should #LeanInTogether.
I couldn’t have had the career I’ve had without the partner at home that I’ve had. I often note that one of my smartest career moves was convincing my husband that when our toddler cried out “Mommy!” in the middle of the night, he really meant “Parent of Either Gender!” So we each ended up sort of tired, rather than me extremely tired.
So LeaningIn Together helps to level the playing field. In helping to take steps toward equality of opportunity, it is the right thing to do.
It’s also the smart thing to do.
During those days when my children were losing their pacifiers out of their cribs and asking to be soothed after a nightmare, I was starting my career as an equity research analyst. I initially covered life insurance companies and then quickly moved to covering the Wall Street firms.
This job entailed a great deal of quantitative and analytical work, modeling companies’ future earnings, stress testing them and then determining which ones had better (or worse) prospects than the stock market at large was discounting. It was through insights into where the broader market was wrong that career-making “calls” were made.
To evaluate a company, in nearly every client meeting, one question was always asked. It was some form of “Is management any good?”
And my answer was always some form of “Yes, I think so, because I met with them for an hour one time,” or “Yes, I think so, because I saw them on stage at a conference,” or “No, I don’t think so, because they stumbled the answer to a question I asked them once.” I would have been better off saying “Are you kidding? I have no idea beyond some superficial impressions.”
But as I moved into management myself, the answer came into focus. Having a diverse team -- diversity of thought, perspective, background, temperament, gender, color -- mattered in driving the vigorous debate to get to the optimal business outcome. I have worked on teams that were diverse and teams that were not; the diverse teams were more effective.
The research on the issue backs this up. Companies with diverse leadership teams are associated with higher returns on capital, lower risk, greater long-term focus, greater client focus, and greater innovation. In my opinion, it’s not a far leap to believe that these results can in turn drive better stockholder returns.
For this reason, I partnered with Pax World to launch the Pax Ellevate Global Woman’s Index Fund (PXWEX). This mutual fund invests in the top-rated companies in the world for advancing women, as ranked by such measures as percent of women on their Boards of Directors and in their senior management teams.
I believe I now have a much better answer to the question “Is management any good?”
It’s another reason to #LeanInTogether. Men and women. Visit LeanIntogether.orgfor more information.
Sallie Krawcheck is the Chair of Ellevate Network and Ellevate Asset Management.Ellevate Network (formerly 85 Broads) is a professional woman’s network, operating across industries and around the world. Both businesses are committed to the full economic and financial engagement of women.
(Photo: John Newman, Flickr)
Past performance is no guarantee of future results.
You should consider a fund's investment objectives, risks and charges and expenses carefully before investing. For this and other important information, please obtain a fund prospectus by calling 800.767.1729 or visiting www.paxworld.com. Please read it carefully before investing.
RISKS: Investment in mutual funds involves risk, including possible loss of principal invested. You could lose money on your investment in the Fund or the Fund could underperform because of the following risks: the market prices of stocks held by the Fund may fall; individual investments of the Fund may not perform as expected; the Fund’s portfolio management practices may not achieve the desired result. Accordingly, the Fund’s performance would likely be adversely affected by a decline in the Index. Investments in emerging markets and non-U.S. Securities are generally less liquid and less efficient than investments in developed markets and are subject to additional risks, such as risks of adverse governmental regulation, intervention and political developments. As this Fund can have a high concentration in some issuers the Fund can be adversely impacted by changes affecting issuers. There is no guarantee that the objective will be met and diversification does not eliminate risk.
Distributor: ALPS Distributors, Inc. Member FINRA. ALPS Distributors, Inc. is not affiliated with Ellevate Network or Ellevate Asset Management.
Have more questions? Follow up with the expert herself.
Sallie Krawcheck’s professional mission is to help women reach their financial and professional goals (or, put more bluntly, to get more money into the hands of women), thus enabling them to live better lives and unleashing a positive ripple effect for our families, our communities and our economy. To that end, Krawcheck is the Chair of the Ellevate Network, a 135K-strong global professional women’s network; she is also the CEO and co-founder of Ellevest, a... Continue Reading
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