Circles Quote by Warren Buffett
“If we have a strength, it is in recognizing when we are operating well within our circle of competence and when we are approaching the perimeter.”
About This Quote
Source Annual Shareholder Letter, 2020
Recognizing competence limits and avoiding overextension protects success.
In simple terms: Know your limits.
Key Takeaway
Stay within competence.
Themes
business
strategy
competence
Mood
cautious
analytical
Type
financial
strategic
When to use this quote
- investment decisions
- career planning
- project scope
Key Concepts
circle of competence
risk management
Questions to Reflect On
- How to identify your perimeter?
- When to seek expertise?
A Different Perspective
Overconfidence can blind judgment.
![“Tell them you came, and saw, and looked into my eyes and saw the shadow of the guard receding. Thoughts in time and out of season, the hitchinker stood by the side of the road and levelled his thumb in the calm calculus of reason. [...] Why does my mind circle around you? Why do planets wonder…” quote by Jim Morrison](https://sms4smile.com/quotes/img-quotes/9ae/jim-morrison-1692_bird_tell-them-you-came-and-saw-and-looked-in_18280.jpg)