- Knowing what you know and what you don’t is the starting point to acquire wisdom.
- It is also an important trait for investors compared to arrogance or overconfidence.
- Often the confidence in one’s abilities is misplaced and one is not even aware of the same.
- “Invest within your circle of competence. It is not how big the circle is, it’s how you define the parameters.” These are golden words of the legendary investor Warren Buffett.
- It is important to understand what “opportunity” mean
Read more at: http://www.moneycontrol.com/news/investing/why-buffett-asks-you-to-invest-within-circlecompetence-_2207381.html?utm_source=ref_article