Want to Improve Your Investing Habits? Try Warren Buffett's Circle of Confidence.让你的鳍ancial strategy sleeker and more customized to your passion with this concept.

ByPhil Town

Opinions expressed by Entrepreneur contributors are their own.

According to Entrepreneur Network partner Phil Town, if you want to become a successful investor, you should develop a circle of competence. A circle of competence is an aggregation of all the things you have expertise in, and Town says you should focus on making investment decisions on topics, businesses and industries that fit within the circle.

To further narrow your search and identify possible investments, you should look at the companies within your circle that match your values.

点击播放更多地了解如何定义your circle of competence and make better investments.

Related:The Pros and Cons of Investing in a Stock Index

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Phil Town is an Investment Advisor, Hedge Fund Manager, 2x New York Times Best-Selling Author of Rule #1 & Payback Time, and Ex-Grand Canyon River Rafting Guide. Rule #1 Investing is Warren Buffett style investing, teaching you how to buy businesses on sale, with little risk and 15 percent returns. In fact, Rule #1 investing is practically immune to the ups and downs of the stock market.

More from Phil Town

How to Find a Stock On Sale That's Right for You

3 Bad Investing Habits You Should Drop Before It's Too Late

Nervous About Investing? Think About Your Money This Way.

How to React When a Recession Is Approaching

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