Understanding your Circle of Competence: How Warren Buffett Avoids Problems - Deepstash
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Circle of Competence

Circle of Competence

Each of us, through experience or study, has built up useful knowledge on certain areas of the world. Some areas are understood by most of us, while some areas require a lot more specialty to evaluate.ย 

It is important to honestly define what we know and stick to those areas.ย 

Our circle of competence can be widened, but only slowly and over time.

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