Read? Our Desired Investing Outcome: The Pareto Principle (80/20)
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.
Diversify and then naturally keep the large winners as Concentrate for its liquid cash and cut off the rest of not so good ones. Pareto Principle in action!
The outcome as on 8 May 2017
Posts
Haha so true Uncle! For me it's 20% of the time Mr Market gives me opportunities to buy/trade that gives 80% of my returns. Currently only have few hundred thousands in 2 ETFs, with another couple hundred Ks in money mkts & short-term bonds. Depending on market situations, I can be 100% in a single ETF or 100% in money mkts.
ReplyDeletei think it's the same as fishing with a rod.
ReplyDelete80 % of the time you do nothing but waiting patiently.
20 % of the time you got something or nothing.