Pages:
Author

Topic: Circle of Competence - page 2. (Read 263 times)

legendary
Activity: 2394
Merit: 1632
Do not die for Putin
February 26, 2021, 05:02:35 AM
#1
This concept was popularised by Warren Buffet and Charlie Munger. Each person has area of thing "they know", e.g. if you work in computing you will know ´bout programming, networks, systems and the like.

In investment, the rule is "stick to your circle of competence", just do not invest in things you do not understand.

Linked to this is the Dunning-Kruger effect - when you thing you know something and you have understood a problem, but you really have no idea.

Is bitcoin in your circle of competence or are you Dunnin-Krugering around?
Pages:
Jump to: