Part 7/10:
Another critical attribute is staying within your circle of competence. Buffett's famous advice about knowing the boundaries of your expertise is underscored here. The example given involves owning a handful of assets within a small town—franchises, gas stations, real estate—where familiarity breeds confidence and better decision-making. It demonstrates that concentrated, well-understood investments can outperform a scattered portfolio, as long as the investor remains within their domain of knowledge.