The 80/20 Rule in the S&P 500
I read Richard Koch’s book on the 80/20 rule (Pareto Principle) a few years ago.The book really clicked with me. Since then I constantly look for this trend in companies I work with. The pareto principle, sometimes called the principle of factor sparsity or the law of the vital few, states that for many events approximately 80% of the effects come from 20% of the causes. This was originally observed… Read More »The 80/20 Rule in the S&P 500