FYI: As the author recently mentioned, I think one of Warren Buffett’s most underrated skills is his ability to recognize when a situation is getting outside of his well-defined circle of competence. He not only recognizes when a situation is too hard, but I think he doesn’t waste much time even considering the investment. I doubt he spent more than an hour thinking about whether or not to invest in Sears when Lampert reorganized the retailer in the early 2000’s. I’ll highlight a few comments Buffett said in 2005 when asked about Sears. What strikes me is the common sense and simplicity of his logic:
Regards,
Ted
http://basehitinvesting.com/buffetts-underrated-investment-attribute/
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David