David Brown, a respected financial modeler and consultant, shares his journey into modeling, passion for teaching, and thoughts on controversial modeling issues. He discusses the importance of problem-solving, storytelling with ratios, and embracing AI in financial modeling. Brown highlights the significance of financial modeling skills and accreditation, as well as the need for human understanding in aligning models with client needs. Overall, the podcast explores the future of financial modeling and the balance between AI and human expertise.
Visualizing the model before building it improves efficiency and effectiveness in the modeling process.
Embracing AI as a personal assistant enhances productivity and allows financial modelers to focus on human mechanics and client understanding.
Deep dives
Visualize the model before building
One nugget of advice is to visualize the model before starting to build it. This helps in understanding the purpose of the model, its structure, and the desired outputs. By visualizing the model upfront, you can have a clearer direction and make the modeling process more efficient and effective.
The Power of AI as a Personal Assistant
AI, including chat GPT, can be seen as a personal assistant in the modeling process. It can provide answers to specific questions, help in building models, and enhance productivity. By utilizing AI as a personal assistant, financial modelers can benefit from faster and more accurate results, while still playing a crucial role in understanding the purpose, reviewing the models, and providing human insights.
Don't Fear AI, Embrace It
Instead of being apprehensive about AI, financial modelers should embrace it as a valuable tool. AI can assist in model building, data analysis, and decision-making processes. Rather than spending significant time on model mechanics, the focus can shift towards human mechanics, such as deepening client understanding and storytelling. By embracing AI, financial modelers can leverage its strengths to become more efficient and insightful.
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 David Brown, the Managing Partner of D Brown Consultingand one of the most respected financial modelers, consultants, and educators in the field of finance with offices on multiple continents.
Listen to this episode as David shares:
His journey and background into Modeling
How to find your passion and be willing to put yourself out there
How he learned he had a passion for teaching at a young age
How intuition is a good place to start, but the model helps validate hunches and numbers
How he explains the balance sheet without using numbers to non-finance people
Ways to embrace AI and use it to be more efficient in the work you do.
His position on controversial modeling issues, including circular references, dynamic arrays, modeling standards, and more