# Circle of Competence #mentalmodel ## Source - https://fs.blog/2013/12/circle-of-competence/ ## Keywords (topics and howto) - [[topic - mental models]] - [[how to make better decisions]] - [[how to avoid common biases (brain shortcuts)]] ## Relevant notes - [[zt - the circle of influence and circle of concern]] another wise reflection based on circles ## Notes - Circle of Competence is what you know and have expertise on. You have more chances of succeeding if you keep your focus on those areas. - The Circle of Competence tells you where to spend your time to achieve the most success. - Changing your circle of competence is slow but can be done > “What an investor needs is the ability to correctly evaluate selected businesses. Note that word “selected”: You don’t have to be an expert on every company or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital.” - Warren Buffett