Charlie: When You Don’t Know and You Don’t Have Any Special Competence, Don’t Be Afraid to Say So
Admitting that a question falls outside your expertise keeps an uninformed answer from misleading others. Munger illustrates this with Jack Welch’s response to a question about Apple and an analogy about a bee’s confused dance.
THE IDEA
Charlie: When You Don’t Know and You Don’t Have Any Special Competence, Don’t Be Afraid to Say So
Charlie Munger emphasizes the importance of intellectual honesty. When asked about Apple's mistakes, he copied Jack Welch's response: "I don’t have any special competence that would enable me to answer that question." Munger compares people who confidently answer without knowledge to bees that, when nectar is placed straight up (an unnatural situation), dance an incoherent dance that confuses the hive. Similarly, people who answer questions outside their expertise screw up the decision-making environment.
When to use it
In a business meeting where someone asks for an opinion on a topic you don't fully understand, saying 'I don't know' can build trust and prevent misinformation.
When evaluating an investment, identifying what you do not understand before deciding whether you can assess it.
In team decision-making, creating a culture where members can safely admit lack of expertise leads to better collective outcomes.
FROM THEORY TO EVERYDAY LIFE
In practice
Jack Welch's Response About Apple
When asked what Apple did wrong, Jack Welch replied, "I don’t have any special competence that would enable me to answer that question." He modeled intellectual honesty despite his expertise.
The Bee's Incoherent Dance
Munger tells a story about a bee given nectar directly above it. Unable to communicate that unusual location, it dances incoherently and confuses the hive. He uses the story as an analogy for confident answers outside one’s expertise.
A MOMENT TO REFLECT
Put it to work.
When was the last time you felt pressured to answer a question outside your expertise? How did you handle it?
How can you distinguish between a situation where you genuinely have competence and one where you are relying on general knowledge?
What would change in your workplace if everyone adopted the principle of admitting ignorance?
Often confused with
References
- The Intelligent Investor — Benjamin Graham (1949)
CONTINUE THE CONVERSATION
Source texts
- The Art of Being Rational Charlie Munger