As we begin another new year, perhaps the following quotes may give some food for thought for financial modellers:
“If I had an hour to solve a problem, I would spend 55 minutes thinking about the problem and five minutes thinking about solutions” Albert Einstein
Time spent thinking is crucial for any modelling problem. I always advocate thought and restructuring, rather than the headlong rush into iterative macros which are often used as a quick fix solution to circular references. Modelling is all about logic and mental agility.
“Simplicity is the ultimate sophistication” Leonardo da Vinci
The best solutions to modelling problems are usually simple. Make sure that all the components of the model are logical and without circular references, that appropriate functions are used and that formulae are short and comprehensible.
“Perfection is achieved, not when there is nothing more to add, but when there is nothing left to take away.” Antoine de Saint-Exupéry
Make sure that models (and formulae) are uncluttered. Whilst I always encourage the use of extra lines for clarification, avoid needless repetition. If a line is not needed, simply take it out: to check for dependent cells, use ALT MD (Formulas -> Trace Dependents).
Wishing everybody a happy and successful 2017 even though, as Pliny the Elder reminds us, the only certainty is uncertainty.