Munger’s remark concerns the limits of knowledge and the ability to recognise them. Genuine competence usually includes an understanding of where one’s expertise becomes uncertain. If a person has to ask whether they have moved beyond that boundary, Munger suggests that the uncertainty itself is evidence that they probably have.

The idea is closely connected to his concept of a “circle of competence”. Within that circle, a person can judge evidence, risks and assumptions with reasonable confidence. Beyond it, they may lack the experience needed to distinguish what they know from what they merely suppose.

More broadly, the quote presents self-awareness as part of sound reasoning. Expertise is not simply possessing knowledge; it also involves recognising what remains unclear. In business, investing and other forms of decision-making, acknowledging those boundaries can help prevent overconfidence and reduce errors caused by acting on incomplete understanding.