One of Buffett's investment principles is to only invest in stocks within your 'circle of competence.' If you don’t understand it, don’t invest. But if you strictly follow this principle, how can you improve? First, keep learning and researching to understand other companies/assets and expand your circle of competence. Once your circle grows, you can invest in relevant targets within the 'circle.' Second, companies themselves may change and enter your strike zone. For example, after the rise of mobile internet, Apple evolved from a pure tech company into a consumer goods company with a strong moat. This is similar to Buffett’s logic for investing in Coca-Cola, which is why between 2016-2022, Buffett turned Apple into Berkshire’s largest holding.