What is the Circle Of Competence?
Each of us, through experience or study, has built up useful knowledge in certain areas of the world. Some areas are understood by most of us, while some areas require a lot more specialty to evaluate.
The bits you understand well is your circle of competence.
For eg: Most of us understand the economics of a restaurant. That basic knowledge, along with some understanding of accounting would enable one to evaluate and invest in any number of restaurants. However, can most of us say we understand the workings of a microchip company or a biotech drug company at the same level? Perhaps not.
82
1.01K reads
CURATED FROM
Understanding your Circle of Competence: How Warren Buffett Avoids Problems
fs.blog
5 ideas
·9.16K reads
IDEAS CURATED BY
If you want to improve your odds of success in life and business, then define the perimeter of your circle of competence, and operate inside.
“
The idea is part of this collection:
Learn more about personaldevelopment with this collection
Cultivating a growth mindset and embracing challenges
Developing adaptive thinking and problem-solving skills
Effective learning frameworks and approaches
Related collections
Similar ideas to What is the 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.
It is important to honestly define what we know and stick to those areas.
...
Stick to your Circle of Competence
Charlie Munger once commented that "in order to disagree with somebody you must first understand their argument better than they do."
The most common way people lose money is to overestimate how clever they are and how much they know. Even after a fifty-year investing career, both...
The power of observation
Observing and chatting with colleagues helps us gain valuable knowledge. Employers recognize how important it is to enable workers to learn from each other, on an ongoing, informal basis.
Popular learning models have tended to suggest that 20% of our learning about a job co...
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates