Why are engineers so good at investing?
The other day I was thinking about mental models.
They’re incredibly useful in any everyday situation, but even more so in investing.
Long before I knew about Munger, I was already collecting them; but it was only after listening to him that I understood how important they really are.
For me, it all started with math, logic and philosophy; which led to computer science/engineering, psychology and economics; and then systems, risk, networks and others.
I think this is a more or less natural progression for getting to know a lot of them.
For an engineer, I think the fundamentals of statistics, math and logic are already ingrained - while for people from other backgrounds, these aren’t immediately obvious.
I think this is part of the reason why so many engineers manage to be so successful in finance.