The concept of a "circle of competence" refers to the areas of knowledge, expertise, or skills where an individual or organization has a deep understanding and can make informed decisions. The term is often associated with renowned investors like Warren Buffett and Charlie Munger, who emphasize the importance of knowing what you know and, perhaps more importantly, knowing what you don't know. The idea is that each person has a defined "circle" where they feel confident in their knowledge and ability to make sound judgments.
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