How Does The 80/20 Rule Apply To Investing? 3

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

The first, and most important point to understand about markets (and in many ways, life) is that outcomes aren’t normally distributed.

“Normally” in this case meaning the famous bell curve. This might come as a shock to a lot of people, who might not even realize that other distributions exist – such is the extent of the normal distribution’s dominance in modern day thinking.

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