Tag Archives: Pareto Principle

80% of my investable income is in cash, precious metals and a small number of stocks. That might seem crazy, but the Pareto Principle, Zipf's Law and the bell curve have convinced me that it's a waste of time and money to get any more diversified. [Let me explain why that is the case.] Words: 396

When it comes to investing, we all want to earn the highest return possible. There are many strategies out there to help with this endeavor but I’ve found the best route for the highest returns is to simply follow the 80-20 rule. The 80-20 rule has nothing to do with your overall allocation. It goes much deeper than that so let’s get started so you can start achieving the highest returns possible.