Stay within your circle of competence from "summary" of Buffettology by Mary Buffett,David Clark
Warren Buffett’s principle of staying within your circle of competence is a fundamental concept in successful investing. This principle emphasizes the importance of sticking to what you know best and not venturing into areas where you lack expertise or understanding. Buffett himself has attributed much of his success to his strict adherence to this principle. By staying within your circle of competence, you are able to focus on industries and companies that you have a deep understanding of, allowing you to make informed and intelligent investment decisions. This approach reduces the risk of making costly mistakes due to lack of knowledge or understanding of a particular subject. Buffett believes that investors should only ...
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