Circle of Competence

The next mental model I’m digging into is the idea of your “circle of competence”. This is something I’ve talked about a few times on here, most recently with my post asking “ where is your perimeter? “, and finding the edges of your circle.

As Warren Buffett puts it:

“You have to stick within what I call your circle of competence. You have to know what you understand and what you don’t understand…