Intelligent Investment Today - The Warren Buffett Way

Inside the Circle: Why Understanding Beats Guesswork in Investing

David Coombs

In this episode of Intelligent Investment Today, David Coombs dives into a foundational principle of value investing: staying within your circle of competence. Inspiured by the teaching of of Benjamin Graham and the wisdom of Warren Buffett, we explore why it's essential to only invest in businesses you truel understand -and the dangers of pretending you don when you don't.

From financial institutions to AI firms, David walks through real-world examples of businesses that may lie beyond the average investor's grasp, and why that's perfectly okay. He shares insights on how to avoid costly mistakes, the importance of intellectual humility, and why sticking to simple, understandable businesses can lead to long-term success.

Whether you're a seasoned investor or just getting started, this episode is a valuable reminder: if you don't get it, don't invest in it.

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