Three Circles Exercise
In the Book Rule #1, Mr. Town describes a method to find stocks that have meaning to you. He names the method the three circle exercise. The idea is you put things you’re passionate about, talented at and spend money on, in three circles.
You then analyze what is overlapping in each circle and pick companies to investigate further based on a common theme in each circle. I thought it’d be a good exercise to complete this exercise right now, without the circles.
Things I’m passionate about (Passion)
- Sports
- Cooking
- Traveling
- Relaxing
Things I’m good at (Talent)
- Sports
- Cooking
- Engineering
- Research
- Finding deals
Where I Spend my Money (Money)
- Sports
- Traveling
- Shopping
- Food
As you can see the common theme in all the circles (bullets) are sports, traveling and cooking. This shows that I have meaning in these areas of business. The next post I’ll discuss the various companies that are available options in these categories.
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Sunday, February 10th, 2008 at 9:30 pm under