The enterprise being so new and novel, on account of the fearfulness of certain holders in reference to its success, we frequently had to take stock to keep it from going begging, but we had such confidence in the…
The enterprise being so new and novel, on account of the fearfulness of certain holders in reference to its success, we frequently had to take stock to keep it from going begging, but we had such confidence in the…
Adam Smith:The Wealth of Nations, Book I, Chapter XI, Paragraph 518
Adam Smith《The Wealth of Nations》· Book I, Chapter XI · Investing
The discovery of the abundant mines of America seems to have been the sole cause of this diminution in the value of silver, in proportion to that of corn. It is accounted for, accordingly, in the same manner by every body; and there never has been any dispute, either about the fact, or about the cause of it. The greater part of Europe was, during this period, advancing in industry and improvement, and the demand for silver must consequently have been increasing; but the increase of the supply had, it seems, so far exceeded that of the demand, that the value of that metal sunk considerably. The discovery of the mines of America, it is to be observed, does not seem to have had any very sensible effect upon the prices of things in England till after 1570; though even the mines of Potosi had been discovered more than twenty years before.
The enterprise being so new and novel, on account of the fearfulness of certain holders in reference to its success, we frequently had to take stock to keep it from going begging, but we had such confidence in the…
But I fear I am telling too much about banks and money and business. I know of nothing more despicable and pathetic than a man who devotes all the waking hours of the day to making money for money's sake. If I were…
Charlie Munger《A Lesson on Elementary, Worldly Wisdom As It Relates To Investment Management & Business》· Circle of competence · Investing · Character · Decision
Every person is going to have a circle of competence. And it's going to be very hard to advance that circle.
Everyone has a circle of competence, and expanding it is hard.
Context
Munger argued that everyone has a circle of competence, and that the circle expands only slowly. The task is to identify where you have a genuine edge and to play only within that boundary. Venturing outside is not courage; it is handing the game to someone else's advantage.
Today's question
Where is the boundary of your competence—and what happened the last time you bet outside it?