Circle of competence
Would you do surgery you don't understand? Then why buy a business whose economics you don't understand?
Buffett's circle of competence, for doctors: what "understand" really means, how to find your lane, and the one question to ask before you buy. The one-page version of yesterday's reel: save it for your next stock idea.
Sources
- Buffett, 1996 Berkshire Hathaway letter (index funds; "Intelligent investing is not complex..."; circle of competence): https://www.berkshirehathaway.com/letters/1996.html