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You have to stay within a circle of competence and know the industry well.
"Everybody has a circle of competence, and it's going to be very hard to enlarge that circle," he advised in his Benjamin Franklin-style book Poor Charlie's Almanack.
So for me, the real lesson behind a circle of competence is that it gives me the courage to buy and hold stocks during market dislocations and not wait for things to calm down.
Develop a "circle of competence".
The idea of a "circle of competence" is based upon the idea that most people, through education or life experience, develop useful knowledge about some areas of the world.
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Real estate is often a team game, and by partnering with local experts, you can expedite your knowledge of a market and circle of competence, thus reducing the risk associated with your investment.
The smartest, most successful, highly effective people understand how to distinguish and separate that which is critically important (and in their control) from that which ultimately won't make a critical difference -- or, is outside of their circle of competence and control.
"And not leaving his core, his circle of competence, and really investing into businesses that he really understands". A-Rod sports a cotton and silk polo ($198) and linen trousers ($198) by Todd Snyder.
If social media content and engagement are a "rabbit hole," then "social aptitude," or what Buffett likes to refer to as circle of competence, is about "not how large the area of it is, it's how well you've defined the perimeter".
You stay within the circle of competence.
The circle of competence is more than that.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com