Letters by Topic
Letters on Circle of Competence
The boundary of what an investor truly understands; staying within this circle is essential for making good investment decisions.
1989·First articulation of the circle of competence concept
The circle of competence is the boundary of what you truly understand. The key is to know where that circle is.
1996·Explaining why technology falls outside his circle
Understanding consumer behavior is more durable than understanding technology. My circle of competence is defined by predictability, not by novelty.
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Circle of Competence is one of the ideas behind the ValueOS tools. See it applied to real companies.