What Is Your Circle of Competence?

Warren Buffet refers to the Circle of Competence as the useful knowledge we’ve accumulated throughout our life.

Through the experiences we’ve gone through, we’ve picked up wisdom and various life lessons, factual knowledge.

But we’ve also developed, as Charlie Munger says, our own skill-sets and areas of expertise.

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Warren Buffet’s “Circle of Competence”

But I also wanted draw a comparison of the Circle of Competence to Anthony Robbins’ idea of the Comfort Zone.

The Comfort Zone

In his book “Unlimited Power”, Robbins talks about our comfort zone being a circle.

Very much like the most inner circle of our Circle of Competence.

We are perfectly comfortable in and familiar with everything in our comfort zone.

In life, we will encounter various problems – challenges or obstacles.

Robbins conceptualises these as “X’s”. In other words, if there is a problem, an X will stick to the outer rim of your comfort zone.

If you don’t overcome the obstacles and challenges, your comfort zone will shrink

If you successfully overcome that obstacle and get rid of the problem, your comfort zone “eats” the X, and it grows bigger.

Essentially – the more X’s your comfort zone “eats”, the more you grow.

The nuanced point

Through life, you will run into obstacles and confront challenges.

Whether you’re going through life actively or passively, you will inevitably run into these.

But if you navigate life with a bias to action, you will run into obstacles far more often.

Because you are actively looking to expand your comfort zone, the universe will fight back and throw all these X’s and challenges at you.

Because the universe doesn’t care if you grow or don’t grow.

All the universe wants is for you to find your mate, spread your seed, and let someone pump out a vehicle that contains 50% of your genes.

So if you’re actively making life happen for you and not happen to you, you’ll have more challenges to overcome.

“Those who understand that there is little difference between obstacle and opportunity and are able to turn both to their advantage.” – Nicolo Machiavelli

And as you jump over the hurdles that life throws you’re way, you’re comfort zone will widen, you’ll become more adept at overcoming these obstacles, and you’ll become more competent.

Because you’ll learn valuable, hard-earned truths and wisdom as you expose yourself to this growth-promoting experiences.

And you’ll grow as a result.

So if you live with a bias to action, your growth over time will behave like compound interest.

The intersection between the comfort zone and the Circle of Competence

Is the Circle of Competence analogous to Robbins’ concept of the comfort zone?

Doesn’t your Circle of Competence increase in size as you navigate life with a bias to action?

Warren Buffet mentions that though our Circle of Competence can expand slowly over time, you should stick to what you know, to what you’re competent at because if you don’t, you’ll be more likely to make mistakes.

But as a culture, we condemn failure and glorify success.

Are mistakes really that bad?

After all, you’ll grow if you properly heed the lessons from them.

P.S. Thanks for reading and feel free to subscribe to my email list.

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