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Equity research firms would be much more successful if their business model looked less like a traditional brokerage and more like Barstool Sports. Let me explain

Been a few threads on this recently. The value of wider distribution is limited. I was paid high six figures on sell-side and there are plenty others getting paid seven figures as sell-side analysts. Back into how I would have gotten paid that via this model.

IMO it doesn’t work without the big traditiona AM/HF commission pool and IBD cross-subsidization.

Also, MIFID2.

I agree it would be difficult. 1) research spend (& comp as a result) is already going down over time. 2) The best research could still fetch 6-figure salary prices. 3) Scale + creativity should in theory fill the gap.

Example would be: - get Factset/Bloomberg to sponsor you - a Substack w/4,200 subs x $10/month = $500K, w/good research could be achievable - still have buy-side clients paying the core $

Don’t think you really understand the business. It’s an $8bn industry. Why would existing market leaders give away free product on YouTube Spotify and sub stack to low quality clientele?