Buffett believes in the power of staying within your circle of competence from "summary" of The Warren Buffett Portfolio by Robert G. Hagstrom
Buffett's strategy is centered around staying within his circle of competence, which means sticking to what he knows best. He believes that by only investing in companies that he understands well, he can make better decisions and reduce the risk of losses. This approach allows him to focus on businesses that align with his expertise and avoid venturing into unfamiliar territory. Buffett's circle of competence includes industries and companies that he has a deep understanding of and can accurately evaluate. This knowledge comes from years of experience, research, and continuous learning. By staying within his circle of competence, Buffett can quickly assess the potential risks and rewards of an investment, leading to more informed decisions. Buffett's disciplin...
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