Sentences with phrase «circle of competence»

The margin of safety idea applies to circles of competence as well.

Looking outside your current circle of competence may yield some useful ideas, then.

Part of a litany of excuses too many value investors trot out to justify hiding within their own circle of competence comfort.

Given it's specialised nature, it generally sits outside most investors circle of competence.

I like the term circle of competence.

A mix between Warren Buffett's circle of competence concept (read Warren Buffett Speaks and Lessons from 20 value investing books, part III) and Mohnish» Dhandho approach helps you to invest in such a manner: Invest only in businesses you understand, and don't strike unless the probabilities are in your favor (maximizing the upside while minimizing the downside).

Finally, sapphires should certainly be within the company's existing circle of competence, but I'm concerned about the additional costs and distraction of setting up / operating in another country.

And you've got to play within your own circle of competence.»

Since then I've completed a degree in economics, slightly expanded the realms of my rather limited circle of competence, and now work in the industry, which has proven to be a pretty neat continuation of my aim of the blog.

«When you find something where you know the business, it's within your circle of competence, you understand it, the price is right, the people are right,» he said, «then you take your thumb out of your mouth and you barrel in.»

He added, «When you find something where you know the business, it's within your circle of competence, the price is right, the people are right, then you take your thumb out of your mouth and you barrel in.»

Professionals understand their circles of competence.

Who needs to listen to folks like Warren Buffett as they constantly espouse the virtues of staying within your circle of competence?

The real key to making money in the stock market lies in longevity, in investing within your means and inside your circle of competence, and in never losing money.

Is it within my circle of competence?

One should aim to first make sure they're investing in businesses that are within one's circle of competence.

That is no time to be reading a book on the theory of diversification... When you find something where you know the business is within your circle of competence, you understand it, the price is right, the people are right — then you take your thumb out of your mouth and you barrel in» Warren Buffett

Moreover, every company featured here has a business model that's fairly easy to understand, because it's important to invest in businesses that are within your circle of competence.

Adding to that oversupply problem are people who stray out of their circle of competence, since risk comes from not knowing what you are doing.

A few years ago Warren Buffet bought IBM, and some people say he walked out of the circle of competence.

Charlie Munger: I have a circle of competence, and it doesn't include which companies in Silicon Valley are going to succeed, so I tend to avoid the subject entirely.

But one of my other favorite ideas from Munger is that investors should stay within their circle of competence, and only bet big when they have a high conviction understanding.

Belief update: My circle of competence for making discretionary investments is smaller than I thought.

Merton and Scholes won the 1997 Noble price for the same discovery, but were unable to control themselves and use it safely within their circles of competence.

Doesn't seem too expensive either — but unfortunately its circumstances are a little too far outside my «circle of competence» for me to add any other insights....

Instead of being a market timer, I'm a buy - and - sell investor, with a focus on valuing individual stocks.Find stocks that lie within your circle of competence, analyze them as to whether they meet your qualitative criteria (such as competitive advantage, strong balance sheet, high return on capital, shareholder - friendly management.

«Defining your circle of competence is the most important aspect of investing.

«It's vital, however, that we recognize the perimeter of our «circle of competence» and stay well inside of it.

That's why Warren Buffett's assertion that investors stay within their circle of competence is so incredibly important.

This is exactly what the teachers of value investing will tell you — never stray outside your circle of competence... outside what you know.

Some key ideas that i learnt about are: We should start investing ASAP, Importance of thorough background search, Concept of margin of safety, How to pick stocks, How much to invest, How to invest, How to develop a circle of competence etc..

Great investors have become great by following this very principle of «circle of competence».

If you have to ask yourself that question when looking at a company, then it's probably beyond your circle of competence.

Going outside of your circle of competence can lead to more problems than it's worth.

Remember your circle of competence.

That is what expands your circle of competence, and deepens your knowledge at the core.

It is good to be curious, and learn things a jump or two outside your circle of competence.

You only have to be able to evaluate companies within your circle of competence.

Warren Buffett calls it - investing within your «circle of competence».

Berkowitz» answer was basically that he invests in what he knows (his circle of competence), and he also said something else I found interesting: he uses checklists.

Apart from the fundamentals, it's important to check the quality of the company which includes finding out your circle of competence, moat, management etc..

The former part of that statement can be boiled down into making sure a company is within one's circle of competence, sports high - quality fundamentals, and has durable competitive advantages.