What Buffett means by 'Only when the tide goes out do you discover who's been swimming naked'

What Buffett means by staying within your circle of competence

Buffett advises investing in areas where one has deep understanding and expertise

What Buffett means by a company's moat — sustainable competitive advantage

Buffett's "moat" refers to a company's sustainable competitive advantage protecting it from rivals

What Buffett looks for in management — integrity, intelligence, and energy

Buffett values management integrity, intelligence, and energy for long-term success

What Buffett's annual letters consistently emphasize — focus on return on equity, not earnings per share

Buffett's letters stress long-term value creation via high return on equity

What moral hazard causes — people take more risk when they don't bear the full consequences

Moral hazard: Insurance coverage leads to riskier behavior due to reduced personal consequences

What the disposition effect causes — investors sell winners too early and hold losers too long

The disposition effect leads to premature selling of profitable investments and delayed selling of underperforming ones