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He believes in investing in what you know and understand from "summary" of Warren Buffett's Ground Rules by Jeremy Miller
Warren Buffett's philosophy on investing can be boiled down to a simple yet powerful idea: put your money into businesses that you understand. This approach may seem like common sense, but it is surprising how many investors fail to adhere to this principle. Buffett's success, however, speaks volumes about the effectiveness of this strategy. By focusing on businesses that he knows and understands, Buffett is able to make informed decisions about where to allocate his capital. This means that he is less likely to be blindsided by unexpected developments or changes in the market. Instead, he can rely on his deep knowledge of the companies he invests in to guide his decisions....
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