Circle of Competence

We think that as investors it is crucial to define what it is that we DO NOT invest in, and what it is that we DO invest in.

This allows us to clearly define our Circle of Competence.

Thus we know where to focus our time, efforts and money on when deciding what and how to invest.

This is also called Focus Investing, and we believe that taking this approach will give people the greatest chances of long-term financial success.

This needs to be combined with a consideration of each person’s Investment Risk Tolerance and Investment Personality, as well as that of their partners.

That is, you need to invest in things that you are comfortable with and allow you to “sleep at night” (ie. SANF, or the “Sleep At Night Factor”!) and suit your own nature and disposition, and that of your partner.

Read Investment Risk Tolerance and Investment Personality next…

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