One analyst's epic Twitter rant reminds everyone what Wall Street research is really for

Here at Business Insider, we write about Wall Street research a lot.

Sometimes the notes we find are funny. Sometimes analysts appear too deferential to management. Sometimes analysts all seem parodically headed in the same direction.

But the vast majority of Wall Street research is an inoffensive effort by analysts who — not unlike journalists — cover a specific slice of an industry and aim to serve clients by offering their best-informed views on what they’re seeing and why it matters.

This work, however, often draws the ire of critics and these critics take many forms.

Some of them could be media members who can’t believe every analyst is saying the same thing. Critics could also be portfolio managers who can’t believe the analyst community got a stock so wrong. But for investors and clients of investment banks, analysts are not meant to replace but supplement your own work.

In a great Twitter rant on Friday, pseudonymous analyst @NoonSixCap broke down a number of misconceptions that folks all across the industry have about what the job of an analyst really is.

And the major takeaway is that you — not any sell-side analyst — are responsible for returns. Full stop.

Noon Six said the whole rant is kind of a yawn, but we’d disagree.

Because while a lot of this commentary might fall into the category of “stuff we all know is true,” nothing gets quickly and conveniently forgotten quite like a known truth.

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