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  • If you have been following the business news for the last year or so, you probably think

  • that it was one of the best years ever.

  • Yes, we had a global pandemic, where millions of people lost their jobs, but on the other

  • hand, there are people who made billions.

  • Now we have almost 500 more billionaires than we had last year.

  • And existing billionaires are much wealthier than they have ever been.

  • Take Elon musk fro example, at the beginning of 2020, his net worth was around 20 billion

  • dollars.

  • not bad, right?!

  • that made him one of the richest people on earth, but within a single year, his wealth

  • grew to over 150 billion dollars, and for a brief period he even exceeded Jeff Bezos

  • as the richest man in the world.

  • It's not a coincidence why a small minority of people have accumulated the vast majority

  • of the wealth.

  • It might seem unfair, but if you give it a closer look, this small group of people who

  • made all the money in 2020 followed one basic strategy.

  • And the people who suffered the most or made the least amount of money in any given year

  • do not follow this strategy.

  • In fact, when I struggled to grow this channel, I followed the exact same strategy, and it

  • worked.

  • Of course, I am not the best person to take an example from because there are people who

  • have channels far bigger than this one, but they also used this exact strategy just better

  • than me.

  • So let's find out what this strategy is?

  • Why do all millionaires or even billionaires follow this strategy?

  • And

  • what is

  • the rule of 20 percent?

  • While it might seem like the rich got richer during 2020, that's not the case in reality.

  • Yes, a few companies like amazon, apple and others made fortunes, but the overwhelming

  • majority of the companies in the S&P500, which represents almost the entire US economy, had

  • a horrible year.

  • And without the government support, most of them would have gone bankrupt, even those

  • who seemed immune to such crises.

  • Think of the airline business, for example, or the travel industry.

  • All the restaurants had to close down as a result of the shutdown.

  • The lockdown stopped people from driving as often as they used, so the demand for gas

  • and oil dropped significantly, which led the oil industry to suffer tremendously.

  • Less driving means less demand for new cars which dragged down the auto industry.

  • But the reason you haven't heard too much news about all the companies that suffered

  • tremendously is because a few tech companies who represent almost half of the s&p500 did

  • great.

  • They have grown so big, their valuation is beyond anyone's imagination.

  • So when the entire country was down, these few companies grew and still made the stock

  • market look like sunshine and rainbows.

  • And that's not by accident because during any situations, its often a few top players

  • who make most of the money.

  • Take a look at any company.

  • The vast majority of their sales or profits come from a few products, even if that company

  • has a lot of products.

  • Apple, for example, which seems like the most successful company in the world, has plenty

  • of products from gadgets to services, but almost half of its revenue comes from iPhone,

  • and the other 30 percent comes from another two products and the remaining its products

  • and services only account for 10 or 20 percent of its revenue.

  • Take a look at the athletes.

  • When you hear the news that they are paid millions of dollars just to play a single

  • game, it blows your mind.

  • You feel like you should have become an athlete, but the truth is, there are millions of athletes

  • all across the globe, and only the top 1 percent of these individuals earn 80 percent of the

  • money that's earned in this industry, and the remaining 20 percent shared by everyone

  • else and the vast majority can't even make a living by playing sports.

  • And the same goes for youtube.

  • The top 1 percent of YouTubers make millions of dollars, and the rest barely survive.

  • Often you will get a much higher ROI (rate of return) by working in a McDonald's than

  • making youtube videos.

  • Most YouTube videos get fewer than 50 views, only 2% gett 1,000 views or more, and 0.3%

  • of the videos gett at least 500,000 views.

  • This means your odds of becoming famous via YouTube are vanishingly small.

  • Even if you end up getting half a million views, trust me, you are not going to make

  • a lot of money.

  • You don't believe me?

  • Give it a try!

  • You see all these people making videos about how much YouTube paid them per million views,

  • well you have to understand that they have been making videos for years, and they are

  • one of the few lucky ones who made it to the top of the chain and not because they made

  • that one single video and suddenly got so many views.

  • But the interesting part is that the top Youtubers follow the 20 percent rule to be at the top.

  • You see, when I started making videos, I made videos about every topic that I found interesting.

  • Economics, self improvement, stock market, personal finance, biographies, a bit of history

  • and book summaries.

  • I would spend an entire week reading the book so carefully to make a great summary about

  • it, but at the end of the day, it would barely get any views.

  • I am not even talking about getting paid for spending so much of my time creating that

  • video, and barely anyone would watch it.

  • But then I realized that 80 to 90 percent of all the views that the channel gets are

  • from finance-related topics.

  • That's when I told myself whether it worth making other kinds of videos?

  • So I started focusing on the stock market, personal finance, and a few successful videos

  • took the channel to where it is now.

  • The 20 percent rule or the 80/20 rule simply states that 80% of consequences come from

  • 20% of the causes.

  • 20% of drivers cause 80% of all traffic accidents, 20% of employees are responsible for 80% of

  • the results, 20 percent of the drinkers drink 80 percent of the alcohol.

  • The ratio isn't always exactly 80/20, but it's somewhere close to that.

  • 80% of wealth is accumulated in the hands of 20% of people Because 20% of people are

  • solving 80% of the problems.

  • 20 percent of your friends bring you 80 percent of your happiness, 20 percent of the books

  • you read brings you 80 percent of the value you get from all the books you read.

  • Twenty percent of what you do earns you 80 percent of your income.

  • The point is, If you stop doing all these things that do not make your life significantly

  • better, you will have more time to focus on the things that will maximise your productivity,

  • income and happiness.

  • So, Stop reading all the books that bring you minimum value.

  • Stop wasting your time with people who barely make your life any better.

  • 20 percent of your problems are the result of 80 percent of your stress, so by getting

  • rid of these problems, you will get rid of 80 percent of your stress.

  • If you are not going to do this, you are just going to stay average or experience failure

  • after a failure.

  • It's very difficult to stay somewhere in the middle.

  • You are either going to be successful or a failure because life is like the game of monopoly.

  • The more successful you get, the easier it gets to become more successful.

  • The more money you are going to make, the easier it will be to make more.

  • That's why you realize that it took some people 20 or 30 years to make their first billion

  • dollars and just one or two years to make their second billion.

  • Remember the example of Elon Musk.

  • Just a little over a year ago, he was not even in the top 10 richest people, but today

  • he is competing with Bezos on the number one spot.

  • If you have enjoyed this video, you will most definitely enjoy this custom playlist that

  • I have created specifically for you that has our most popular videos on business, investing,

  • and the stock market that can potentially change your life.

  • Don't forget to check out our second channel.

  • The link will be in the description.

  • And now give this video the thumbs up that it deserves and make sure to subscribe if

  • you haven't done that yet.

  • Thanks for watching and until next.

If you have been following the business news for the last year or so, you probably think

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A2 percent strategy stock market people rule successful

Why All Millionaires Follow The 20 Percent Rule

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    Summer posted on 2021/04/29
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