Munger argues that success often depends on choosing situations where your knowledge, skills or judgement provide an advantage. Entering a field dominated by people who understand it better can leave little room for error, even if the opportunity itself appears attractive.

The quote therefore emphasises selection as much as ability. Rather than trying to outperform stronger competitors on their own terms, Munger favours looking for situations where one’s particular competence is unusually valuable and where others may be overlooking important facts or making avoidable mistakes.

More broadly, the remark reflects his idea of staying within a circle of competence. The language is deliberately blunt, but the underlying principle is practical: recognise relative strengths and weaknesses before competing. In investing, business and other decisions, choosing an arena where you have a genuine informational or analytical edge can improve the odds of a favourable outcome.