Leveraging the most powerful technology of our era: o1 to delimit Buffet's circle of competence
Combining Buffet & Munger timeless wisdom with cutting-edge AI technology
The first principle is that you must not fool yourself and you are the easiest person to fool.
Richard P. Feynman
Welcome to Self-Actualization, a weekly newsletter sharing AI prompts inspired by timeless books and profound ideas. Our mission is to help you reflect on your life and leverage the most powerful technology of our era.
This Week's Focus: Using AI to draw your Circle of Competences
In the grand chess game of life, we often find ourselves making moves without a clear understanding of the entire board. Today, we'll explore how AI can serve as our strategic partner, helping us define the boundaries of our Circle of Competence.
Just as Buffett and Munger avoid investing in businesses they don't fully comprehend, we must learn to steer clear of areas where our knowledge is limited. Engaging in activities without understanding the rules of the game can lead to costly mistakes and missed opportunities to capitalize on our strengths.
Timeless Wisdom
“We ask ourselves: 'What's important and knowable? And what among those things can we translate into some kind of action that's useful for Berkshire?'”
~ Warren Buffett
"I generally try to approach a complex task by first disposing of the easy decisions...It is usually best to simplify problems by deciding big 'no-brainer' questions first."
~ Charlie Munger
"Cherish some man of high character, and keep him ever before your eyes, living as if he were watching you, and ordering all your actions as if he beheld them."
- Seneca
"The wrong view of science betrays itself in the craving to be right; for it is not his possession of knowledge, of irrefutable truth, that makes the man of science, but his persistent and recklessly critical quest for truth."
- Karl Popper
AI Reflection Exercise
Set aside 30-60 minutes for this exercise. Find a quiet space, set a timer, and engage with the following AI-guided prompt:
[Copy and paste the prompt below into o1 ChatGPT, Claude, or your preferred AI assistant.]
You are an AI mentor embodying the combined timeless wisdom of Warren Buffet, Charlie Munger. Your mission is to help me map out my circle of competence to maximize my strengths and avoid self-deception.
The exercise should be 30 minutes and whenever the user wants to end or you decide it's over, you should give a table summarising his circle of competence. Ask one question at a time to avoid overwhelming the user.
Assessment of Strengths: Guide me through identifying my core areas of expertise. Ask probing questions to uncover skills, knowledge, and experiences where I have genuine competence.
Boundary Identification: Help me delineate the edges of my circle of competence. Challenge me to recognize areas where my understanding is superficial or assumptions may lead me astray.
Blind Spot Analysis: Encourage me to reflect on past situations where overconfidence in certain areas may have led to mistakes. Assist me in identifying patterns that contribute to self-deception.
Strategic Focus: Advise me on how to leverage my identified strengths effectively. Suggest ways to apply my competencies to current goals or projects for maximum impact.
Expansion Planning: Discuss strategies for expanding my circle of competence intentionally. Recommend resources, learning opportunities, or experiences that align with my interests and strengths.
Reflection and Action: Conclude by summarizing key insights gained during the session. Help me formulate actionable steps to apply this understanding in my personal and professional life.
Maintain a balanced approach—be insightful yet critical—to ensure I gain a clear and honest understanding of my competencies.
When you want to stop, say "end now" and copy-paste the summary (or ask for a different format) to keep in your notes.
Conclusion
After completing this exercise, take a moment to reflect on your insights.
Save Your Progress: Remember to save the conversation for future reference. I personally have an infinite note called “Louis” that I keep feeding to AI.
Set a Monthly Reminder: If you didn't finish the exercise, that's okay. Schedule a 30-60 minute event on your calendar each month with a link to this post to iterate on your Circle of Competence.
I'd love to hear about your experience with this exercise. Hit reply and share your thoughts or any questions you have.
Remember, the goal isn't just to create a document, but to gain deeper self-awareness and knowledge.
Stay curious, challenge everything, and keep exploring,
Louis