We’ve experienced both outcomes: As is the case in marriage, business acquisitions often deliver surprises after the “I do’s.” I’ve made some dumb purchases, paying far too much for the economic goodwill of companies we…
And now I speak of thanking God, I desire with all humility to acknowledge that I owe the mentioned happiness of my past life to His kind providence, which lead me to the means I used and gave them success. My belief of…
We’ve experienced both outcomes: As is the case in marriage, business acquisitions often deliver surprises after the “I do’s.” I’ve made some dumb purchases, paying far too much for the economic goodwill of companies we…
And now I speak of thanking God, I desire with all humility to acknowledge that I owe the mentioned happiness of my past life to His kind providence, which lead me to the means I used and gave them success. My belief of…
And now I speak of thanking God, I desire with all humility to acknowledge that I owe the mentioned happiness of my past life to His kind providence, which lead me to the means I used and gave them success. My belief of…
We’ve experienced both outcomes: As is the case in marriage, business acquisitions often deliver surprises after the “I do’s.” I’ve made some dumb purchases, paying far too much for the economic goodwill of companies we…
21:00 Figures · Investing · Modern investor letters
Charlie Munger:The Edge of Competence
Charlie Munger《A Lesson on Elementary, Worldly Wisdom As It Relates To Investment Management & Business》· Section on high technology and the circle of competence · Investing · Decision · Character
And Warren and I don't feel like we have any great advantage in the high-tech sector. In fact, we feel like we're at a big disadvantage in trying to understand the nature of technical developments in software, computer chips or what have you. So we tend to avoid that stuff, based on our personal inadequacies.
Berkshire avoids high tech out of an honest assessment of its competence, not disdain.
Context
Munger and Buffett famously stayed inside their “circle of competence,” investing only where they genuinely understood the business. Munger admitted that he and Buffett had no edge in high technology and were at a positive disadvantage in understanding software and chips. Avoiding the sector was therefore an act of honesty about their limits, not contempt for technology.
Today's question
Which field do you deliberately avoid—and is that an honest competence boundary or an excuse to stop learning?
And now I speak of thanking God, I desire with all humility to acknowledge that I owe the mentioned happiness of my past life to His kind providence, which lead me to the means I used and gave them success. My belief of…