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sixes_and_sevens comments on Open Thread, Apr. 20 - Apr. 26, 2015 - Less Wrong Discussion

3 Post author: Gondolinian 20 April 2015 12:02AM

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Comment author: sixes_and_sevens 21 April 2015 02:28:56PM 3 points [-]

Obviously "finance" is a very wide area that covers a lot of different ideas, but my observation of "finance people" is that they have a powerful mental vocabulary for thinking about what kind of a value something is and what can be done with it over time. For example: the difference between stock values and flow values, expected return of a portfolio of assets, the leveraging of credit, the mitigation of risk.

More generally, they seem to be able to look at some number assigned to a thing, and observe that it's morphologically similar to some other number assigned to some different thing, and understand what sort of things can happen to both those numbers, and what sort of process is required to turn one sort of number into another sort of number.