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The Powerful 80/20 Rule | Pareto Law | Pareto Rule by Ray Dalio

Apr 28, 2020 | Pareto Rule - 80/20 Rule - Pareto Law - Pareto Principle

The famous American hedge fund billionaire Ray Dalio made this brilliant post about the 20/80 Rule which is also sometimes called the Pareto Rule or the Pareto Law:

The 80/20 Rule

The 80 20 Rule states that you get 80 percent of the value out of something from 20 percent of the information or effort. (It’s also true that you’re likely to exert 80 percent of your effort getting the final 20 percent of value.)


– Ray Dalio

The 80/20 Rule: Illustration

The Powerful 80/20 Rule | Pareto Law | Pareto Rule by Ray Dalio 1

The 80/20 Rule: Ray Dalio’s Post

The 80/20 Rule: Key Takeaways

Understanding this rule saves you from getting bogged down in unnecessary detail once you’ve gotten most of the learning you need to make a good decision. Remember the 80/20 Rule and remember what the key 20% is.
– Ray Dalio

If you like this kind of Life and Business advice, we encourage you to have a look at Principles by Ray Dalio.

The 80/20 Rule: Theory and Examples

If you want to learn more about the 80/20 rule or Pareto Principle in details, we invite you to visit our FAQ.

The 80/20 Rule:  Pareto Excel Tutorial And Examples

Below are 3 Excel examples showing how you can apply the 80/20 Rule in  Microsoft Excel:

Excel Pareto  Chart - Tutorial
Automated Excel Pareto Analysis - Example
Manual Excel Pareto Analysis - Tutorial

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