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

By Phil 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.

Click play to learn more about how you can define your circle of competence and make better investments.

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

Entrepreneur Network is a premium video network providing entertainment, ewitducation and inspiration from successful entrepreneurs and thought leaders. We provide expertise and opportunities to accelerate brand growth and effectively monetize video and audio content distributed across all digital platforms for the business genre.

EN is partnered with hundreds of top YouTube channels in the business vertical. Watch video from our network partners on demand on Roku, Apple TV and the Entrepreneur App available on iOS and Android devices.

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

Editor's Pick

Related Topics

Living

Don't Miss This Sam's Club Membership Deal for Just $20

Your last chance for a great deal on a membership that helps you save money all year long.

Devices

This $126 Apple- and Android-Compatible Display Can Help You Drive Safer

Adding this display will elevate your older model car for an affordable price.

Business Ideas

55 Small Business Ideas to Start in 2023

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2023.

Data & Recovery

This Cyber Week Exclusive Gets You 1TB of Cloud Storage for $120

If you're looking for a reliable cloud storage solution, look no further than Koofr.

Business News

McDonald's Is Making a Major Change to Its Burgers in 2024

The beloved Big Mac will also be getting a big makeover.

Thought Leaders

3 New Ways to Develop Laser-Like Focus

To boost focus in the face of distractions, you need a new approach to success.