How does one figure out what one’s circle of competence is?
WB: It means being self-realistic. I have gone out of my own circle more often in retail than in other areas. I think it’s easier to think you understand retail than you really do. I probably was outside my circle when I bought BRK as a stock AND when I went to get control of BRK. I know of many CEOs who have no idea where their circle begins and ends. I think BRK’s mgrs really know when they are playing in a game they are going to win. Mrs Blumkin was very good at this. She said she did not want Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) stock when she sold NFM. This was driven by her not knowing BRK. She knew what to do with cash. She knew exactly what she knew and did not know.