Globally, 80% of Wealth is held by 20% of the population.

Does Wealth equality really exist or is it just a flawed concept?

The 80/20 Rule

Decoded!🕵️

@iRadhikaGupta @FI_InvestIndia @Kuntalhshah @AvadhMaheshwar2 @caniravkaria

🧵👇

God plays dice with the universe. But they’re loaded dice. And the main objective is to find out by what rules they were loaded and how we can use them for our ends.
- Joseph Ford

Have you ever noticed?

Approximately,

- 80% of wealth is held by 20% of the population
- 80% of your success is attributed to 20% of your efforts
- 80% happiness comes from 20% of the relationships
- 80% of portfolio returns are contributed by 20% of your stock ideas.

These imbalances occur due to an axiom known as Pareto Principle that asserts that 80% of outcomes come from 20% of actions. It is also known as the 80/20 rule.

It was named after an esteemed economist Vilfredo Pareto, who in 1906 noted that 20% of the pea pods in his garden were responsible for 80% of the peas.

He expanded his idea at the macroeconomic level by showing that 80% of the land in Italy was owned by 20% of the population.