hey guys,
Curious what you have found to be the best way to train yourself how to build financial models.
I have BIWS and WS Prep, but not sure actually what's the most effective way to self-train.
I was never good at financial modeling in business school, and subsequently I left IBD too early and went into PE too early, and my inability to model fluently has always been a source of insecurity.
I can build simple 1-page models ok, but I'm nowhere near an IBD quant-jock.
Suggestions on how to use these tools best and most efficiently?
I'm NOT asking which modeling package is best, since I already have a few.
I just want advice on how to best study.
Quants don't do IBD type of modelling, they do models with Python, C++, Matlab. I don't think that's where you should head to. IMO, the best way to learn modelling is to participate in a task, whether it be a modelling test or a technical interview, get a deadline and start doing it under time pressure. If you have a strong heart, by that I mean you are not a quitter, by the end of the task you will find yourself much more fluent with modelling.
Add say visualize how you want to lay out the model and try not to copy as much as possible. I used to leave the macabacus/multiple expansion templates open on one screen and try replicate on the other but you quickly realize that you don't know how to lay out your grids/matrices w/out the help of a template so taking it a way forces you to think about how to toggle scenarios w OFFSET/MATCH and how to Present the IRR and MoC calcs in the LBO
Not that I'm in the best position to offer advice on this, but one person I spoke with for counsel recently said of modeling: "it's all just reps once you've developed your approach to the process."
To get the necessary reps and speed up the learning process, I have been trying to model a simple transaction a week (with increasingly complex elements) based on 10Ks, etc. I can dig up for companies I'm interested in while following the Training The Street steps as closely as I can (I'm sure BIWS and WS Prep are both great as well - have used parts of both as well in the recent past).
I would also definitely echo what daddylaurier says about trying to run it from memory. Trying to lay out a model on paper with a calculator instead of Excel was a helpful reminder of how much practice I still need. Good luck!
does TTS have videos now?
They do - they are based on an older version of Excel, but the operation is identical, and they are very useful for practicing flow of funds.
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