Discussion: Circle of Competence #599
Description
Reference: Navigating Within Your Circle of Competence
"Within your circle of competence, you operate with an advantage. As you approach the perimeter (the limitations of your knowledge), your advantage starts to reduce. As you cross the perimeter, not only does your advantage vanish, but it transfers to other people. Suddenly, you find yourself playing in an area where others have an edge."
"Just because you are good at something doesn’t mean you are good at everything."
TODO: I'll explain the relevance of this item over the weekend.
"According to Charlie Munger, it is necessary to understand the edge of your own competence. He argues that most of his success has come from a good understanding of where he is competent and has the knowledge to excel over others. Munger further notes that he never plays in arenas where others have an edge over him because he lacks knowledge on the subject."
CREDIT: Charlie Munger And The Circle Of Competence: A Lesson From A Winner