The holders of the vast majority of the world’s wealth? Men. So many men—from Trump and Musk and Putin to every CEO, crypto schmo, and solar bro in between.
Nouveau riche (French for 'new rich'; French: [nuvo ʁiʃ]), new rich, or new money (in contrast to old money; French: vieux riche [vjø ʁiʃ]) [1 ] is a social class of the rich whose wealth has been acquired within their own generation…
The Buffett Rule is part of a tax plan which would require millionaires and billionaires to pay the same tax rate as middle-class families and working people. [1 ] It was proposed by President Barack Obama in 2011. [2 ] The tax plan…
4. 11. 2010The 80-20 rule, also known as the Pareto Principle, defines how causes and outcomes correlate. It states that 20% of causes drive 80% of outcomes.
What's the 80-20 Rule?The 80-20 rule is a principle that states 80% of all outcomes are derived from 20% of causes. It's used to determine the factors (typically, in a business situation) that are most responsible for success and then focus on them to improve results. The rule can be applied to circumstances beyond the realm of business, too.What Does the 80-20 Rule Mean?At its heart, the 80-20 rule simply underscores the importance of exerting your energy on those aspects of your business—or life, sports activity, musical performance, blog, etc.—that get you the best results. However, it does not mean people should then ignore the areas that are less successful. It's about prioritizing focus and tasks, and then solving problems that reveal themselves due to that focus.How Do I Use the 80-20 Rule to Invest?When building a portfolio, you could consider investing in 20% of the stocks in the S&P 500 that have contributed 80% of the market’s returns. Or you might create an 80-20 allocation: 80% of investments could be lower risk index funds while 20% might could be growth funds. Of course, past performance doesn't necessarily correlate with future results. So, be sure to monitor your portfolio's performance to see how well the results match your intent and your goals.