PLAYBOOK FOR BEAR MARKETS

Know What You Know

“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.

Refine your circle >

Sharpen your edge >

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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