Charlie Munger On Defining Your Circle of Competence

“Everybody’s got a different circle of competence. The important thing is not how big the circle is. The important thing is staying inside the circle.” — Warren Buffett Warren Buffett often tells investors that they should only be looking for potential investment opportunities that fall inside their circle of competence, a mantra that he has always followed. Q4 hedge fund letters, conference, scoops etc The benefit of experience Buffett has been an active investor for nearly eight decades, so he is well aware of what he is good at, and what he is terrible at. His experience has also taught…