In 1996, Warren Buffett told his shareholders, “You don’t have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital.” The key message here is – […]

In 1996, Warren Buffett told his shareholders, “You don’t have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital.”The key message here is – concentrate on your area of expertise, and don’t be afraid to say “I don’t know” when you’re dealing with someone else’s circle of competence.A circle of competence is a personal thing. An individuals circle of competence is the subject area which matches most closely their skills and expertise. A circle of competence is something we develop in the knowledge that we cannot know everything. The existence of your circle of competence, involves a recognition that other may have theirs.The central point – is stick to what you know!