Circle of Competence
The set of businesses an investor can genuinely evaluate, including their economics and their failure modes. Returns come from policing the boundary honestly rather than from enlarging the circle. Anything outside the line is declined however attractive it looks, and the circle grows only through study.
7 books · 4 people behind it · 4 resources
Start here
- Seeking Wisdom: From Darwin to MungerPeter Bevelin, 2003
- The Essays of Warren BuffettLawrence A. Cunningham, Warren Buffett, 1997
- Poor Charlie's AlmanackCharles T. Munger, Peter D. Kaufman, 2005
The people behind it 4
Each person holds a book in this entry or names it in their own tags.
Investors 1
Academics 1
Journalists 2
Resources 4
- Understanding Your Circle of CompetenceShane Parrish · essay · How to define and honestly police the boundary.
- 1996 Chairman's LetterWarren Buffett · essay · Circle of competence stated as an operating rule.
- The Work Required to Have an OpinionShane Parrish · essay · State the other side better than they can.
- A Lesson on Elementary Worldly WisdomCharlie Munger · talk · Munger's USC talk on building a latticework of models.
Books 7
Charles T. Munger, Peter D. Kaufman · 2005
Andrew WilkinsonCharlie MungerChristopher BloomstranFrancois RochonGuy SpierLi LuMichael MauboussinMohnish PabraiWarren BuffettBill GatesDaniel EkDrew HoustonEric JorgensonJosh WolfeMarc AndreessenMatt MullenwegMichael BatkoNathan MurphyNaval RavikantNiki ScevakPatrick CollisonRamit SethiRyan PetersonSam AltmanShane ParrishTerrance McArthurThe Barefoot InvestorTim Ferriss
T2 Range
David Epstein · 2019 · The case for breadth over early specialisation in unpredictable domains
Cal Newport · 2012 · Career capital before passion; building rare and valuable skills