Circle of Competence Tag Archive

What’s your hotdog

(Excerpt from Rework by Jason Fried) The way to find the epicenter is to ask yourself this question: “If I took this away, would what I’m selling still exist?” A hot dog stand isn’t a hot dog stand without the...

September 19, 2021| Circle of Competence, Strategy, Via Negativa Read More

Know when your maps are not useful

(Excerpt from The Great Mental Models Volume 1: General Thinking Concepts by Shane Parrish) But what physicists do so well, and most of us do so poorly, is that they carefully delimit what Newtonian and Einsteinian...

August 11, 2020| Circle of Competence, Fallibility, Map Is Not Territory, Structure drives behaviour Read More

A mistake is made if you had legit confidence about something but you fail to act big

(Extracted from University of Berkshire Hathaway by Daniel Pecaut and Corey Wrenn) Munger observed that the most extreme mistakes in Berkshire’s history show up as opportunity costs. … In his younger...

March 20, 2020| Circle of Competence, Investing, Kelly Criterion, Life Read More

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