Warren Buffett

Palladian Park - Constraints

How to Effectively Use Role Models

Using role models effectively can fast-track our personal growth. We are social creatures who learn from our tribe members; when we see others who are successful, we strive to emulate them in the hopes that we too can experience success. Conversely, we shy away from what the troubled members do for fear of falling into their same misfortunes. But like anything, we can take this practice too far.

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Palladian Park - Constraints

Circle of Competence: Stick to What You Know

While a large circle of competence might indicate intelligence, knowing exactly where the boundary of the circle is exemplifies wisdom. As such, knowing the locations of the boundary of the circle trumps the size of the circle. That doesn’t mean we cannot grow our circle. But we should stay within our circle of competence to improve our chances of making good decisions.

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