IFB162: Circle of Competence Overlaps, In Defense of Intel

Announcer (00:00):



You’re tuned in to the Investing for Beginners podcast. Finally, step by step premium investment guidance for beginners led by Andrew Sather and Dave Ahern. To decode industry jargon, silence crippling confusion, and help you overcome emotions by looking at the numbers, your path to financial freedom starts now.



Dave (00:35):



All right, folks, we’ll welcome to Investing for Beginners podcast episode 162 tonight, Andrew and I are going to go back to the well, and we’re going to talk about the circle of competence. Again, this is going to be part two. So we had some other thoughts that we wanted to expound upon. After last week’s episode, we enjoyed making that conversation, and we had some other ideas that we wanted to talk a little bit about. A circle of competence is a very important subject. It’s a very important topic, and I think it needs to be explored as much as we possibly can. So without any other conversation for me, I’m going to turn it over to my friend, Andrew, and we’re going to go ahead and get started.



Andrew (01:14):



I completely agree with that. I think it is a topic that does need extensive coverage and particularly because there’s more to it than we talked about. So I got this idea from three different sources. One was a podcast with Jeremy grants. You’re familiar with him, right, Dave? Yes. Maybe you can intro why we should listen to him.



Dave (01:43):



Well, he is a partner for a firm called GMO if I remember correctly, and he is a value investor, very, very smart guy, but his specialty is fixed income, particularly bonds. That’s where I’m familiar with him. And that’s frankly, all I know, I just know he has like a ton of money and has had a good track record. And he’s, he’s one of those like value investing legends. I then know about the bonds part, but I also know, I think he either, he was like how the really popular book is academic, really popular academics. So they, I can’t remember. But anyway, so he, he brings up this idea or this, this kind of finding that he, he came across.



Andrew (02:32):



And so he was talking about how there’s a lot of opportunity for people. And I believe he was talking about investors too, but there’s a lot of opportunity in the holes that people are filling. So, you know, you have a world where everything is getting so specialized, that it’s the overlap of that specialization that can make huge opportunities and leads to a lot of great discoveries ideas. So he gave an example where he said that you know, climate change is a thing that’s been on people’s minds a lot lately, and it’s something that scientists are trying to fix. And so, on the one hand, you have the climate change scientists. On the other hand,