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Read Stacks/Concepts/Circle of competence

business

Circle of competence

Also: Buffett’s circle of competence

What it means

Warren Buffett (popularized by Naval + Ray Dalio): the set of domains where your knowledge is genuinely deep. Stay inside it for big bets. The danger isn’t having a small circle — it’s misjudging the size of your circle. Most expensive mistakes happen at the edges.

Related concepts

Asymmetric bet
Skin in the game

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