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How to Create Your Circle of Competence (Video Post)

January 25, 2016 | | 8 Comments

Here is a video I created for students of my Mastermind Value Investing Course.

I thought it would be useful for you as well, so sharing it here.


If you can’t see the video above, see here.

Tom Watson [the founder of IBM] said – “I’m no genius. I’m smart in spots and I stay around those spots.”

The entire idea about the Circle of Competence concept is to help you find your spots, which is so very important to your success as an investor. And that’s exactly what the above video will help you learn.

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Filed Under: How To, Investing //
About the Author

Vishal Khandelwal is the founder of Safal Niveshak. He works with small investors to help them become smart and independent in their stock market investing decisions. He is a SEBI registered Research Analyst. Connect with Vishal on Twitter.

Trackbacks

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    February 7, 2014 at 1:21 am

    […] whose intrinsic value you are trying to calculate. This can only happen when you stay within your circle of competence and study businesses you understand. Simply exclude everything that you can’t understand in 30 […]

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    September 13, 2014 at 10:38 am

    […] The entire idea about the Circle of Competence concept is to help you find your spots, which is so very important to your success as an investor. And that’s exactly what I have explained in this short video. […]

    Reply
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    April 28, 2015 at 8:05 pm

    […] and de-prioritize the bottom 80%. And this is why Buffett’s philosophy of sticking to your circle of competence makes so much […]

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    May 11, 2015 at 11:54 am

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    June 12, 2015 at 8:55 am

    […] their own knowledge; that’s one of the most basic parts of human nature. Knowing the edge of your circle of competence is one of the most difficult things for a human being to […]

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  6. Latticework of Mental Models: Surfing - Safal Niveshak says:
    March 16, 2016 at 8:55 am

    […] that is a very, very powerful idea. Every person is going to have a circle of competence. And it’s going to be very hard to advance that circle…So you have to figure out what your […]

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  7. Investing and the Fear of Missing Out - Safal Niveshak says:
    September 12, 2016 at 10:40 am

    […] this distinction that Domino’s wasn’t really a missed opportunity. It was never in my circle of competence, for two reasons – (1) I didn’t understand Domino’s business and its valuation in […]

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  8. Investing and Fear of Missing Out - Safal Niveshak says:
    September 12, 2016 at 10:43 am

    […] this distinction that Domino’s wasn’t really a missed opportunity. It was never in my circle of competence, for two reasons – (1) I didn’t understand Domino’s business and its valuation in […]

    Reply

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