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The Pareto Principle (80/20) Investing Strategy
By A Path to Forever Financial Freedom (3Fs)  •  March 19, 2015
In 1906, Italian economist Vilfredo Pareto created a mathematical formula to describe the unequal distribution of wealth in his country, observing that twenty percent of the people owned eighty percent of the wealth. The 80/20 rule has then been commonly used throughout everyday's life to assume the practical meaning of 20 percent that are vital and 80 percent that are trivial. I am a firm believer of the idea behind this principle, including investing. I believe that the investment I made at present day will compound over time to give the majority of the results in the future. This is very powerful because you are essentially spending time today to train and dedicate the golden goose that will yield you an unimaginable superior results in the future. The same goes for Warren Buffett for instance. Since the inception of Berkshire Hathaway in the 1950s, the company has delivered outstanding long term results for its shareholders. The ... ...
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By A Path to Forever Financial Freedom (3Fs)
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