Equity Research
Prepalyst has 20 buy-side research interview questions with model answers, covering conviction, downside cases and knowing when the work says no. Every question is graded on technical accuracy, completeness and interview communication. Practice is free.
A first-round buy-side question testing whether you distinguish company quality from an investment opportunity.
A candidate says, "I would buy Company A because it has great products, loyal customers and a strong management team." What is missing from that answer?
Management assessment is critical to buy-side investing. This tests judgment of leadership.
What framework do you use to assess management quality, and what are the red flags that indicate poor management?
Sector rotation is a core investment strategy. This tests understanding of market cycles.
What indicators do you monitor to identify sector rotation opportunities, and how do you differentiate between cyclical and structural shifts?
The foundational buy-side question. Understanding the difference is essential for the role.
Explain the key differences between buy-side and sell-side research. How does the focus, time horizon, and incentive structure differ?
Passive investing has transformed markets. This tests understanding of structural changes.
How has the rise of ETFs and passive investing affected your analysis and the opportunities available to active managers?
A junior research exercise testing whether you can reconcile a headline growth rate before accepting management's narrative.
A consumer company reports revenue rising from $500m to $550m, or 10%. Management says acquisitions added 6 percentage points and foreign exchange added 2 percentage points. What was organic growth, and what would you…
Asked to check you understand which job you're applying for.
What's the difference between buy-side and sell-side research? Which is the harder job?
Moat analysis is core to buy-side investing. This tests understanding of sustainable competitive advantages.
What framework do you use to assess competitive moats, and how do you determine whether a moat is sustainable?
Earnings quality is critical to avoid value traps. This tests forensic accounting skills.
What metrics and red flags do you look at to assess the quality of reported earnings? How do you distinguish high-quality from low-quality earnings?
Value vs growth is a fundamental investment debate. This tests portfolio construction philosophy.
How do you think about the value versus growth trade-off in portfolio construction? When do you prefer one style over the other?
Sell discipline is as important as buy discipline. This tests portfolio management skills.
What are your sell criteria, and how do you distinguish between temporary volatility and a deteriorating thesis?
Position sizing is critical to risk management. This tests portfolio construction discipline.
What framework do you use to determine position size, and how do you balance conviction with risk?
Catalysts are essential to timing buy-side investments. This tests understanding of what moves stocks.
What types of catalysts do you look for, and how do you assess their probability and timing?
Scenario analysis is critical to managing uncertainty. This tests quantitative thinking.
You're valuing a company with significant uncertainty around growth rates and margins. How do you structure and weight scenarios to arrive at a fair value estimate?
A research interview scenario testing how you turn an earnings release into a differentiated trade decision.
You cover a retailer whose shares trade at $40. Consensus expects next year's EPS of $4.00 and management guides to $3.70 after a weak quarter. Your initial work suggests the miss comes from a temporary supply…
A buy-side final-round case testing whether you can revise a recommendation when primary research conflicts with management guidance.
You own a 4% long position in a software company at $80. Your base case is worth $105 (60% probability), your bear case is $55 (25%), and your bull case is $125 (15%). Two of five channel-check customers say they have…
A final-round judgement question testing whether you can reject a polished growth narrative when cohort evidence weakens it.
A vertical-software company trades at 7x forward revenue and reports 108% net revenue retention. It also gives customers a 12-month implementation holiday, has doubled sales commissions capitalised on the balance sheet,…
Short selling requires different analytical skills. This tests contrarian thinking.
What framework do you use to develop a short thesis, and what are the key elements of a compelling short idea?
A buy-side analyst simulation testing whether you can update a view before the morning investment meeting.
You cover a long position in a vertical-software company. An alternative-data alert challenges the core thesis two hours before the portfolio-manager meeting. Work through the evidence and write the investment update the…
Tests whether you understand that stock returns and business quality are different things.
Your favourite company beats earnings and raises guidance, and the stock falls 8%. Explain how that happens.
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
Firm names indicate where a question type is commonly reported in interviews. They are not sourced from, endorsed by, or affiliated with the firms named.