Equityprivate has a post about the blog of an alleged associate at Elevation Partners. The post has a great comment about financial models.

Large unwieldy models are almost universally produced by financial “professionals” who have no clue whatsoever about their predictive value (hint: it is vanishingly small) and therefore the size of the model is, in my view, inversely proportional to the technical competence of the employee.

I agree. I have seen a lot of large models that when examined, don’t actually work. While a small well built model that is driven by a few key inputs can be very useful.


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