“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.”2
— Warren Buffett
MODEL TO REFLECT ON
The Circle of Competence
Most investors drown in information.
The best ones operate in a narrow lane and go deep.
This month, refine your circle.
You don’t need to know everything.
You need to know what you know.
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A MENTAL CUE
When nothing is happening, something is compounding.
Let others chase action.
Let your quiet do the heavy lifting.
Print it. Tape it. Live it.
INVESTOR CHECK-IN
Choose one company you own.
Read its last shareholder letter.
Ask: Would I buy this business today at this price if I didn’t already own it?
Owning a stock is not
a reason to keep it.
YOUR EDGE REMINDER
You’re not here for dopamine.
You’re here for the long game.
Silence the feed. Open the research. Hold signal.
1 - https://www.oaktreecapital.com/docs/default-source/memos/2006-09-07-dare-to-be-great.pdf?sfvrsn=b3bc0f65_2
2 - Warren Buffett's 1996 Letter to Berkshire Hathaway Shareholders