Back to the Basics: Circle of Competence

Circle of competence sounds fancy, but it's not really that fancy. Here's what it is. It's know what you know, but more importantly, know what you do not know. A lot of investing mistakes don't just come from bad math. They come from the fact that you're investing in a business. You have confidence in a business that you really don't know at all. You don't have a good understanding of what that business is and how they make money. So today, Andrew and I are gonna dive deep into what the circle of competence means, what it is, and how you can find out where your circle of competence is, and most importantly, where it is not. This show is sponsored by Liquid Ivy. Now that the weather is finally heating up, one of my favorite ways to step away from spreadsheets and the SEC filings is getting outside for an early morning run. But once the summer heat truly kicks in and I start breaking a serious sweat, I know I need to hydrate and actually replenish, and it gets a lot more important. No matter what activities get you moving, you need to stay hydrated as well. Liquid I. V. Delivers longer lasting hydration than water alone. And right now, you get 20% off your first order with code investing at checkout. I always keep a packet of their hydration multiplier sugar free in my gym bag. Their white peach is absolutely delicious. It's incredibly refreshing, and it's made with zero artificial sweeteners. I'll say it again, zero artificial sweeteners. Just one stick and 16 ounces of water hydrates faster than water alone. It's powered by LIV Hydro Science, an optimized ratio of electrolytes essential vitamins and clinically tested nutrients that turn ordinary water into extraordinary hydration. Plus, it actually retains that hydration for up to four hours, so you feel refreshed all morning long. Get moving with superior hydration from Liquid I. V. Tear, pour, live more. Go to liquidiv.com and get 20% off your first purchase with code investing at checkout. That's 20% off your first purchase with code investing at liquidiv.com. I've been thinking about it recently, and I can still remember the exact moment before I launched my very first business. I was sitting there staring at the screen, and the self doubt is hitting me like a ton of bricks. Is this really the right decision? What if I completely fail? What if no one buys anything? Making that leap was terrifying, but pushing through that uncertainty was one of the best decisions I ever made. I just wish I had Shopify back then to ease my worries and handle the heavy lifting for me. Shopify lets you tackle all those important tasks in one place, from inventory to payments to analytics. You name it, making your life easier. They even accelerate your efficiency with built in AI tools that help you write your product descriptions and enhance your photography. Plus, they …