InvestorWords.com
circle of competence
Definition
Warren Buffett's belief that an investor's best strategy is to select an area where they can know significantly more than the average investor (called their circle of competence), and focus their efforts on that area.
Recommended Articles from InvestorGuide.com
Featured Tip
8 Tips to Investing SuccessfullyAccording to Charlie Munger, here are the essential considerations for successful investing:
1. Risk: measure it, avoid it if possible, have a margin of safety, and limit downside.
2. Inde ... Read more
1. Risk: measure it, avoid it if possible, have a margin of safety, and limit downside.
2. Inde ... Read more
Additional Tip(s)
Related Videos
Featured Advertiser
Get our free Term of the Day newsletter!
