How I Learned to Separate the Signal from the Noise
I still remember my early days as a radio frequency (RF) engineer. I was fascinated by the invisible world of signals and waves, and how, with the right tools and the right mindset, you could sift through all the interference to extract clear, actionable data. Working in that field taught me something invaluable: not everything that comes at you is worth paying attention to. There’s always noise—distractions, irrelevant information, and misleading signals—but if you train yourself to focus on what really matters, you can uncover the truth. Engineering Wealth!
As I transitioned from engineering to the world of investing, I found myself returning to this idea time and time again. The markets are noisy. The financial news, the constant flood of opinions, the minute-by-minute updates—they all create this overwhelming sense of urgency and anxiety. But like in RF engineering, there’s a signal there, waiting to be found. And the key to becoming a good investor is knowing how to separate that signal from all the noise.
My Journey from Engineering to Investing
When I first started investing, I thought it would be simple—just crunch some numbers, pick a few stocks, and watch the returns roll in. But I quickly realized that the stock market doesn’t work that way. It’s full of conflicting information and unpredictable events. I was bombarded with advice from every corner—some of it useful, most of it not. It was like standing in the middle of a chaotic field of static, trying to pick out the one frequency that mattered.
But then I thought back to my time as an engineer. In RF, when you’re looking for a signal, you don’t just listen to everything at once. You develop a system—a method for filtering out the unwanted noise and honing in on what you’re really looking for. You learn to trust the process, to ignore distractions, and to stay focused on the goal.
I began to approach investing in the same way. Instead of trying to absorb every bit of information, I started developing my own framework. I sought out the best thinkers in the field—Peter Lynch, Warren Buffett, Benjamin Graham—and studied how they found their signals amid all the market noise. I wasn’t just looking for stock picks or quick wins. I wanted to understand their process. I wanted to see how they thought, how they filtered out the irrelevant and zeroed in on the companies that truly mattered.
Systematic Thinking: The Key to Making Sense of It All
Systematic thinking is about breaking down complexity into manageable parts, focusing on the components that matter most, and building a structured approach to problem-solving. That’s what I learned in RF engineering, and it’s what I applied to my investing. I didn’t need to understand every nuance of the market; I needed a system to focus on the most critical elements.
Here’s how I applied this mindset to investing:
- Focus on What You Know
In engineering, you start with what’s measurable and tangible. In investing, this meant focusing on companies and industries I could understand. Peter Lynch famously said, “Invest in what you know,” and it’s advice I took to heart. Rather than chasing the hottest tech stocks or trying to predict market trends, I zeroed in on businesses whose fundamentals I understood—companies I could analyze clearly and without getting distracted by market noise. - Trust the Process
Just like engineering, investing requires patience. You can’t force the right signal to appear overnight, and you can’t rush an investment to yield returns. Warren Buffett talks a lot about the value of patience—how the market is designed to transfer wealth from the impatient to the patient. I learned to trust my system, even when things got noisy or the market wasn’t behaving the way I expected. Like tuning a frequency, sometimes you have to wait until the right conditions align. - Ignore the Noise
This was perhaps the hardest lesson. As an engineer, you’re trained to filter out interference, but in the stock market, the noise can be much more seductive. Financial news, hot takes, expert opinions—all of these can pull you off track. But I learned to tune them out. Instead of reacting to every headline, I focused on the core principles: Is this a company with a solid business model? Does it have a sustainable competitive advantage? Am I comfortable holding this stock long-term? - Learn from the Best, But Build Your Own System
Just as I studied and learned from seasoned engineers in my early career, I did the same in investing. I read everything I could from investors like Peter Lynch, Benjamin Graham, and Morgan Housel. But while I absorbed their wisdom, I also knew I needed to build my own system. You can’t just copy someone else’s approach—you have to tailor it to your strengths, your knowledge, and your risk tolerance.
Building My New Skill Set
Investing wasn’t something that came naturally to me at first. I didn’t have a financial background, but I had something just as valuable: the ability to learn systematically. I approached investing like I did any engineering problem—break it down, identify the key components, and develop a method for making sense of it all.
Over time, I developed my own investing philosophy, one that blends the systematic thinking of an engineer with the patience and discipline of a long-term investor. I learned that investing isn’t about reacting to every new piece of information or trying to predict the unpredictable. It’s about finding the right signal—the companies that align with your values and your strategy—and sticking with them.
Why This Matters to You
I’m sharing this because I know that, for many new investors, the market can feel overwhelming. There’s so much information out there, and it’s hard to know what’s worth paying attention to. My hope is that by sharing my experience, I can help you see that you don’t need to boil the ocean. You just need to focus on the signals that matter to you.
Whether you’re new to investing or just looking for a clearer path forward, remember this: you already have valuable skills. You don’t need to start from scratch. The key is learning how to adapt those skills—whether they come from your profession, your hobbies, or your life experience—and apply them to your investing journey.
If I could transfer the systematic thinking I learned as an engineer into the world of investing, you can do the same. You don’t have to be a financial expert to build wealth over time. You just need to find your signal, tune out the noise, and trust the process.
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