Math, pattern recognition, and investing

Pattern recognition is essential to successful investing. Identifying which data points carry signal, which are noise, and assigning weights based on the predictive powers of those that carry signal while building a diversified portfolio that allows for the overall portfolio to succeed even if individual investments fail due to the incompleteness and incorrect assessments in your data set sit at the heart of investing.

And math is arguably the best subject to study if you want to develop your pattern recognition skills. Math is all about identifying patterns that link inputs to outputs. A mathematical equation is simply a pattern expressed in written form.

I think that a big part of why I enjoy investing is because of the underlying math and pattern recognition skills it involves.


Also published on Medium.