Warren Edward Buffett (born August 30, 1930) is an American businessman, investor, and philanthropist. He is the chairman and CEO of Berkshire Hathaway, a multinational conglomerate holding company. Known as the "Oracle of Omaha," Buffett is one of the most successful investors of all time with a net worth exceeding $100 billion. Under his leadership, Berkshire Hathaway's stock price has...
"If you're already rich, what's the point of risking what you have and need for what you don't have and don't need?"
Risking what you have and need for what you don't have and don't need is financial insanity.
Read Full Analysis →"We have a very small field. We don't try to be good at everything."
Deep expertise in a few areas beats shallow knowledge across many.
Read Full Analysis →"Know your circle of competence, and stick within it. The size of that circle is not very important; knowing its boundaries, however, is vital."
Knowing the boundaries of what you understand matters more than expanding your knowledge.
Read Full Analysis →"Never invest in a business you cannot understand."
Only invest in businesses whose economics you can fully understand.
Read Full Analysis →Warren Buffett has 4 key principles on circle of competence. The most important one is "Know When Enough is Enough" — If you're already rich, what's the point of risking what you have and need for what you don't have and don't need?
Warren Buffett applies circle of competence through several key principles including "Know When Enough is Enough" and "Focus on Few Areas". These principles guide practical investment decisions and have been tested across decades of market cycles.
Warren Buffett's approach to circle of competence is distinguished by a focus on long-term thinking and fundamental analysis. With 4 specific principles in this area, Warren Buffett provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
