Pencilheads
I self-coined the term “pencilhead” maybe a month or so ago, and checking the web says it is not really commonly used just about anywhere, except maybe in some indie band names. Maybe I’ve blogged about it before. Maybe my work-in-progress blog platform needs a decent search engine…
In general, stock analysts are most definitely pencilheads.
I have struggled to generate a precise definition. I am thinking: “One inclined to perform routine, often time-consuming calculations in preference to applying critical thinking to a problem.” Pencilheads would rather be done than be correct. Pencilheads are also compliance people. A page filled in with garbage data is better than a correct sheet missing items. As long as they didn’t have to generate the garbage.
The corporate function of Finance almost always features a vicious war between a pencilheadish compliance/completeness focus and a freewheeling analytical approach. Honestly, you have to be both. A pure critical-thinking analyst gets into trouble and becomes a bad team player. A pencilhead doesn’t make many enemies outside of the analysts, but they don’t exactly help anyone either.
How can you be a compliance person if you don’t think about the numbers? How can you report numbers if you don’t stress completeness even in the face of pointlessness?