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 #cognitivebiases

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[ok]

It’s such a shame the algorithm buried this. Great video.

[hankschrader]

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.

[jamalamirzai]

Thank you for the great videos, I have been learning a lot from these videos.

[finnvongehr]

Shame this video has this little views