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The Circle of Competence 🔴

2023-05-06 · Short · Ali · recording, 0:48 · watch on YouTube

Topic: Work and career (also: Money and investing) · mode: Explanation and tutorial

In a Short, Ali explains Warren Buffett's circle of competence, the areas where experience or study has given us useful knowledge, and advises identifying your strengths, focusing decisions such as investing or career moves inside that circle and slowly expanding it.

What is said

The parts of the video and what is said in each (★ — how much it matters to the video).

00:00:00 — The circle of competence and Warren Buffett's words on it

  • ★★ Ali presents the circle of competence, a concept popularised by Warren Buffett, as the idea that each of us has built up useful knowledge in certain areas through experience or study. — 00:00:00

  • ★★ Warren Buffett (quoted): On investing, Warren Buffett said you only have to be able to evaluate companies within your circle of competence: the circle's size is not very important, but knowing its boundaries is vital. — 00:00:15

    “The size of that circle is not very important. Knowing its boundaries, however, is vital.”

00:00:29 — Identify your strengths, decide inside your circle, expand it slowly

  • ★★ Ali reads Warren Buffett's circle of competence as a call to capitalise on our areas of expertise to fast-track our success in life, while still trying to get better. — 00:00:29
  • ★★★ Ali advises first identifying your strengths, where you are most capable and most experienced, then focusing decisions such as investing or career opportunities on your circle of competence while slowly expanding it over time. — 00:00:33

Threads in this video

  • refine · How do you choose a career? — Ali advises first identifying your strengths, where you are most capable and most experienced, then focusing decisions such as investing or career opportunities on your circle of competence while slowly expanding it over time. (00:00:33)

Mentioned

Central: circle of competence

Also: Warren Buffett

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