I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

Click to email CW8888 or Email ID : jacobng1@gmail.com

Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down

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Value Investing
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Saturday 21 March 2015

Our Desired Investing Outcome: The Pareto Principle (80/20)

Read? The Pareto Principle (80/20) Investing Strategy

Uncle8888 wrote this in ..

Sunday, 2 September 2012

Investors. Know at least Pareto's Principle

Pareto Principle ~ “20% of the effort generates 80% of the results.”

Market Timing vs. Time in Market???
Fundamental vs. Technical Analysis?
Short-term Trading vs.  Long-term Investing???

For long-term investors, we should be observing Pareto's Principle.

80% patiently waiting for Market Timing and then spend 80% Time in Market with 20% of our effort will generate 80% of the results.

And then we spend another 80% market timing for next cycle.

Read?  Laws Applicable To Investing


Quoting the wisdom from this man, Rolf SueyMarch 20, 2015 at 9:48 AM


this principle applies, but it is an outcome. It cannot be use as a strategy.

Since every investment before u press the buy button is ur top priority. If u have 5 stocks, u cannot say my priority is only 1 or 2 out of the rest.

I guess that maybe what B is trying to say is now he is only focusing on few stocks only with higher amt vested in each stock. And this is good enough for him getting good rtn.

but if 20/80 strategy applies... then out of ur 10 stocks, only 2 will give u good money. then how sure are u that it will comes from ur top holdings?


Uncle8888 fully agreed. It is an outcome and NOT a strategy.

BUT, this should be our desired investment outcome after XX years of investing in the stock market. We should be proving this principle RIGHT!


Uncle88888 is quite sure that we are going to prove this principle WRONG by selling our winners sooner; but holding on our losers for the longest possible time before we are forced to sell.

Our investing strategy will likely to determine our investment performance outcome after X decades in the stock market. When our strategies are NOT rightly executed; they will NOT lead us to our desired outcome - The Pareto Principle ~ 20% of the effort generates 80% of the results.”



  1. After 10 to 20 years of investing, if our portfolio is not something close to Pareto Principle outcome. Something is not right?

  2. After every B/B, must be 80% Black 20% Red; then OK

    Real test result

  3. Hi CW,

    "Uncle88888 is quite sure that we are going to prove this principle WRONG by selling our winners sooner; but holding on our losers for the longest possible time before we are forced to sell."

    Your above statement is so so true. No matter how rational or how many books we read, or how much we learn.. we still make the above stupid mistakes...

    I am still holding on to my losers and thinking of averaging down... And the worst is selling my winners to use he amount to average down the losers... Worst!

    Thanks for this IMPT reminder... I know what to do on Monday once market opens! Gum Siah..

  4. add a letter N.

    EGO will be GONE!

    just for laugh!


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