Warren Buffett’s Golden Rule to Success – Stop Being a Jack-of-All-Trades, Become a Specialist.
Your first task is to discover your circle of competence.
There is no magic formula for success in life. You can study successful entrepreneurs for hours, but there is no guarantee that you will be as successful as they were by following the same principles.
However, certain life principles are consistently found in successful people.
When you discover these, it is your duty to investigate further to understand what these rules can do for you in practice. This is what I do constantly in my life, and it is what I encourage you to do as well.
On the other hand, never be dogmatic. Don't do something just because Warren Buffett or Jeff Bezos do it. Test some of their practices and see if they work for you. If it doesn't, don't push it.
We are all different. What works for one person will not necessarily work for another. It's up to you to test and make up your own mind.
You must be aware of your circle of competence
Among the many pieces of advice that Warren Buffett frequently repeats, there is one that I heard several years ago, and that took me a long time to integrate. It is the famous circle of competence that you must rely on to succeed.
Each of us, through our experience or studies, has acquired knowledge and develop skills in certain specific areas. Some areas are understood by most people on earth, while others require specialization to really master them in depth.
Some people make the mistake of trying to master too many skills in various areas. This prevents them from being able to really capitalize on their strengths to achieve great things.
Over time, you'll come to understand that you can't be an expert in everything. Even worse, you will always be beaten by people who are more naturally gifted than you. Indeed, you will always meet people who can master more things than you.
To achieve great things, you don't need to compete with them in every area. You need to limit yourself to a specific circle of skills that is far below what you imagine you will experience in life:
99% of people are overconfident in thinking they have mastered things that are way beyond their skill set.
You must become a specialist in the areas of your circle of competence
Your real job is to strive to excel in those few areas where your skills give you a real advantage. The founder of IBM once said this when asked if he was a genius given the immense success he had achieved:
“I’m no genius. I’m smart in spots—but I stay around those spots.”
— Tom Watson Sr.
Success is therefore achieved by being extremely efficient in a few areas. You don't have to feel inferior to others for that. Charlie Munger, Warren Buffett's loyal partner, also explains that this is the best way to be successful:
“You have to figure out where you’ve got an edge. And you’ve got to play within your own circle of competence. The size of that circle is not very important; however, knowing its boundaries is vital.”
Knowing your limits is a huge strength in life. It will give you an advantage over 99% of people. In fact, you will be able to make fewer penalizing mistakes due to overconfidence.
Final Thoughts
The first step to success is to find the areas in which you have an edge. This will truly represent your circle of competence. Then you need to maximize your knowledge in this circle. This will allow you to take full advantage of your natural advantage in life.
Once you have clearly identified your circle of competence, your chances of success will be much greater. The rest is a matter of motivation, resilience, and patience of course.
Some reading
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What Happens When You Focus Only On What You Can Change - This fundamental change in approach will allow you to succeed while leading a more fulfilling life.