Retirement Answer Man Think Smart, Retire Smarter: Circle of Competence
Oct 23, 2024
Dive into the fascinating concept of the Circle of Competence and learn why understanding your expertise is crucial for smart retirement planning. Discover Karen's inspiring journey from accumulation to decumulation, showcasing the personal side of retirement. Explore how to distinguish genuine competence from superficial internet knowledge and why depth of knowledge matters. Plus, get ready for an exciting live meetup on Roth conversions and join a vibrant community focused on rocking retirement!
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True Competence vs. Surface Knowledge
- The internet provides easy access to surface-level information, creating a false sense of competence.
- True competence requires a deep web of knowledge, built through experience and research, not just quick online searches.
Buffett's Tech Stock Approach
- Warren Buffett avoided technology stocks for years, despite criticism, because they fell outside his circle of competence.
- He prioritized deep understanding over chasing trends, demonstrating the importance of knowing one's boundaries.
Climbers vs. Sherpas
- One-time climbers of Mount Everest have valuable experience, but their perspective is limited to a single event.
- Sherpas, with years of experience guiding climbers, possess a broader, more nuanced understanding of the mountain.