10 commandments of financial modelling

By Nick Colas formerly of Convergex via Barry Ritholz

Commandment #1: Know your purpose.

The lesson: The reason to do a financial model – one that forecasts future income statements, balance sheets and cash flows – is not just to figure out if the company in question will beat or miss the next quarter. Rather, it is to understand a company’s entire business model. Where does it

Continue reading “10 commandments of financial modelling”

One piece of wisdom

My top ten quotes from an excellent blogpost by abnormal returns wisdom blog:

  • Morgan Housel @morganhousel: Cut your confidence in half and double your patience.
  • Peter Lazaroff @peterlazaroff: Losses are incredibly normal
  • Roger Nusbaum @randomroger:: Focus on what you can control.
  • David Shvartsman @financetrends: You are bound to make mistakes or endure a string of losses, especially early on in your learning curve.
  • Tobias Carlisle @greenbackd: Good things really do take time
  • Robert Seawright @rpseawright: Save more (a lot more).
  • Andrew Thrasher  @andrewthrasher: The long-term trend is your friend.
  • Michael Martin @martinkronicle: Turn off the TV and read every day.
  • Jeff Carter @pointsnfigures: You cannot beat the market.
  • Cullen Roche @cullenroche: Your best investments are likely to be made outside of the financial markets.

From https://abnormalreturns.com/2017/06/08/finance-blogger-wisdom-one-piece-of-advice/