I read of the 80/20 rule: 80% of one's profit comes from 20% of the companies owned.
With my portfolio, 19% of the companies generate 64% of the profits. I am almost there. Interesting (to me).
I read of the 80/20 rule: 80% of one's profit comes from 20% of the companies owned.
With my portfolio, 19% of the companies generate 64% of the profits. I am almost there. Interesting (to me).
What happens to the rule if you ditch the other 81%?
Thats what startups are for. But in practice usually the 80-20 rule scales with the available resources.
https://en.wikipedia.org/wiki/Pareto_principle
It's surprising how universally true it seems to be.
In IT it works like this: the last 20% of functionality takes around 80% of the time. That's why when the technical guys tell you "it's nearly done"... It isn't.