The “Circle of Competence” is an investing concept coined by Warren Buffet and Charlie Munger. The former once remarked in one of his now legendary shareholder letters that “One of the things we try very hard to do at Berkshire, is to stay within what I call our circle of competence.” What that meant for […]
Continue readingPeople often pitch me on “great ideas”, they have a revolutionary new product idea, they’ve got an idea for a website/magazine/restaurant that “can’t fail”, some small company assures me that they have something that will make them into “the next Microsoft/Google/Apple”, etc. Brilliant ideas make my eyes glaze over. Why?
Continue readingI have seven brothers-in-law, and they are all financial illiterates. Both sides of the family: my wife’s brothers and my sisters husbands. It would be more poetic if each one corresponded to the “7 Deadly Sins” but they all correspond to sloth and I don’t think being financially clueless is one of the deadly sins. […]
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