Buffett & Munger's surprisingly simple mental model behind their success, Circle of Competence

The Circle of Competence mental model was developed by Warren Buffett and his business partner Charlie Munger. It is a model that describes the area of understanding that matches a person's skills, abilities, or expertise.
Buffett and Munger used the model to describe limiting one's financial investments away from areas you have limited understanding or expertise and instead focusing on areas where you have the greatest familiarity or edge. Part of the model involves the importance of accurately assessing one's own abilities relative to what one may think they might know.
#WarrenBuffett #CharlieMunger #MentalModel #CognitiveBias
Resources, References, & Recommendations:
Articles:
en.wikipedia.org/wiki/Circle_...
fs.blog/2013/12/circle-of-com...
palladianpark.com/circle-of-c...
finance.yahoo.com/news/warren...
www.wealest.com/articles/circ...
Munger Circle of Comp. Quotes: getpocket.com/read/3345350537 or
tradebrains.in/best-quotes-by...
en.wikipedia.org/wiki/Dunning...
Books:
Poor Charlies Almanack: amzn.to/2lmFePT
The Almanack of Naval Ravikant - amzn.to/3peIKZd
Podcast:
clearerthinkingpodcast.com/?e...
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It’s such a shame the algorithm buried this. Great video.

[@erandalee810]

No not really

[@hankschrader7050]

A helpful tip for finding your circle of competence: Look at the titles of the last 100 videos in your youtube history. What are the common themes among all the videos that you tend to watch? Those themes are the things that you have expertise in.

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I wish I saw these video earlier...

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Thank you for this content.

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Thank you sir 🙏

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cool

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Shame this video has this little views

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For the algo