Circle of Competence
- Refers to the subject areas or fields where an individual has a deep understanding and expertise.
- The concept emphasizes the importance of recognizing the boundaries of one’s knowledge and skills and operating within those limits to make better decisions and avoid unnecessary risks.
- While it’s important to stay within your circle, Munger also believed in slowly expanding it over time through continuous learning and experience.
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The Wit and Wisdom of Charles T. Munger.
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Similar ideas to Circle of Competence
Circle of competence
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 concept has been used by Warren Buffett and relates to the importance of honestly definining what we do know and to stick to those areas....
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.
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