How Does The 80/20 Rule Apply To Investing? 1

Few things in life are certain, which makes it important to think in probabilities

Most people understand on some basic intellectual level that few outcomes in financial markets (and life) are certain – that is, luck is a factor.

In turn, the existence of luck means that market outcomes are rarely binary. How does this affect our ways of thinking about markets? More importantly, what does the 80/20 Rule have to do with it?

In order to answer these questions, we have to begin thinking in maybes.

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