NCV - My 10% Income Portfolio - Exploring New CEF Opportunities
At the end of the 19th century, the Italian economist Vilfredo Pareto noted that 80% of Italy's wealth belonged to only 20% of the population. This observation lead to what is now known as the Pareto Principle: in most situations, 80% of effects flow from only 20% of the potential causes. In other words, the effect (output or reward) of an action is not necessarily proportional to the cause (input or the amount of effort exerted).
For example, in the case of business management, it is axiomatic that 80% of sales come from just 20%