Investing In What You Know

Investing In What You Know

When you are a new investor, sometimes it can be overwhelming, however, investing in a company that you know can sometimes be the best alternative.

Many major pitfalls new investors face is not understanding a company’s core product, their competition and their financial outlook. Investing in what you know is not a new concept. “For example, Warren Buffet coined the term “circle of competence.” “He suggests that we all have areas of expertise, and people should only invest in what they know and understand.”

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