For investors, the most important thing is not the scope of the ability circle
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For investors, the most important thing is not the scope of the ability circle
Every investor who hopes to survive in the stock market for a long time should keep in mind Buffett's advice: "for investors, the most important thing is not the scope of the ability circle, but how you can determine the boundary of the ability circle. If you know the boundary of your ability circle, you will be much richer than those who do not know the boundary although the ability circle is five times larger than you.".
In the investment community, we often see a lot of differences, such as whether to concentrate or diversify investment? Should we pay more attention to the ability of enterprises to create profits in the future, or the visible value of hard assets at present? In fact, there are successful people on these paths. The problem is not which path is perfect, but what is your ability tendency? When you really understand the advantages and limitations of each method and your own ability traits, you will naturally lose interest in this kind of quarrel.
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