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.
Source：
https://web.archive.org/web/20140625062802/http://ycombinator.com/munger.html
Locator：Archived transcript, section on high technology, paragraph beginning “And Warren and I don't feel...” · Verified：2026-10-19 · Verification：Exact match
Reading
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?
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