Circle of Competence

Readers.  Please, if you not already a subscriber or regular visitor, go over to noisefreeinvesting.com/blog and read Shane’s presentation on mental models and avoiding the “Man with a Hammer” Syndrome that Charlie Munger so passionately rallies against.

Shane has graciously put together a 50+ slide presentation on various mental models and examples of psychological follies that we are susceptible to, from recency bias to confirmatory bias.

Do your brain, and your wallet, a favor by reading the presentation, twice.   If you haven’t gotten around to reading Poor Charlie’s Almanack, or even if you have, you’ll find the post illuminating.

I’d have come up with something similar myself, but I’ve been (garbled)…..