circle of competence

[DiamondDave]

[ QUOTE ]
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, 1996 Letter to Shareholders

[/ QUOTE ]

Warren, the quintessential weak-tight businessman, doesn't invest in high-tech startups.

He knows that others know what to look for and can make money in that area. He also knows he doesn't and can't.

But in spite of his iron-age investment philosophy and many blunders on his part, Warren has made a metric sh!tl0ad of money over the last 40 years.

I know some people can extract +EV from certain hands in certain spots where I cannot. This means there are holes in my game that I need to work on.

But until my play improves, I can't afford to forget what happens when I play hands I don't know how to play well.