Financial Modeler's Corner

How Financial Modelers build a goldilocks “Just-right” Financial Model with Brian Egger

Nov 22, 2023

Brian Egger, Global Head of Financial Modeling at Bloomberg, discusses finding balance in financial modeling, learning from bad models, trends in the industry, and controversial modeling issues. Topics include integrated models, key drivers, collaboration in financial modeling, industry consolidation patterns, and career trajectory insights.

40:06

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Brian Egger

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Quick takeaways

Find the right balance in financial models between complexity and simplicity to aid decision-making.

Attention to detail is crucial in financial modeling to prevent errors and maintain accuracy.

Deep dives

Balance between complexity and simplicity

Brian emphasizes finding the right balance between complexity and simplicity in financial models. The key is to ensure that the model aids in the decision-making process. He highlights four guidelines: replicating company disclosures, using both drivers and formulas, balancing granularity and simplicity, and incorporating external data and analytics to reframe assumptions.

Introduction

2min

Importance of Logical and Integrated Financial Models

11min

Importance of Key Drivers and Value Creation in Financial Modeling

3min

Collaboration and Diverse Skill Sets in Financial Modeling

12min

Industry Trends and Consolidation Patterns Across Various Sectors

2min

Modeling Preferences and Career Trajectory

5min

Finding the Balance in Financial Models and Advice for Modelers

5min

Welcome to Financial Modeler's Corner (FMC) where we discuss the art and science of financial modeling with your host Paul Barnhurst. Financial Modeler's Corner is sponsored by Financial Modeling Institute (FMI) the most respected accreditations in Financial Modeling globally.

In this episode, Paul Barnhurst is joined by Brian Egger .

Brian is the Global Head of Financial Modeling, Senior Gaming/Lodging Analyst at Bloomberg Intelligence.

He has been publishing models professionally and writing investment research since the 90s on the sell-side as a brokerage analyst. His industry focus has always been broadly centered around consumer gaming, lodging, and leisure.

Brian has also worked in player-coach roles, whether it's being a research director or team leader or his current role, head of financial modeling, and outside the realm of being a practitioner, he has experience teaching as well.

Listen to this episode as Brian shares:

His experience with finding the right balance as a Modeler
His learning from the worst models he has come across.
His role as the Global Head of Financial Modeling at Bloomberg
Everything about Bloomberg’s Interactive Calculator.
Trends of the Industry over the years.
His thoughts on the FMI program and why continuous learning is so important.
His position on controversial modeling issues, including circular references, dynamic arrays, modeling standards, AI in modeling, and more .

Quotes:

“ Models should be dynamic and not static, they should be integrated and not sort of siloed pieces not speaking to each other. ”

" There's a lot of merit just to continuously reinvesting in both your skill set and your credentials, and that it's really important to never stop doing that. The FMI has created a really intriguing platform as a way to do that. ”

“ The CFA exam prepares you in many ways to be a capable securities analyst. ”

Sign up for the Advanced Financial Modeler Accreditation or FMI Fundamentals Today and receive 15% off by using the special show code ‘Podcast’.

Visit www.fminstitute.com/podcast and use code Podcast to save 15% when you register.

Join Paul in Vegas for the FMI World Cup Championship from

December 7, 2023 - December 9, 2023.

Go to https://earmarkcpe.com, download the app, take the quiz and you can receive CPE credit.

Follow Brian Egger:

LinkedIn - https://www.linkedin.com/in/brianegger/

Brian’s article on the balance between complexity and simplicity -https://www.linkedin.com/pulse/what-level-detail-enough-financial-model-brian-egger/?trackingId=08lGH6pSQ865qLFJar2nzQ%3D%3D

Follow Paul:

Website - https://www.thefpandaguy.com/

LinkedIn - https://www.linkedin.com/in/thefpandaguy/