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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

The 80/20 Rule:  Highlight a 80/20 Pareto Distribution in Google Sheets via a Pareto Chart

To learn how to build a Pareto Diagram in Google Sheets and visualize any 80/20 Pareto Distribution in Google Sheets  follow this easy 2-macro-step tutorial:

The 80/20 Rule:  80/20 your Life to Maximise your Well-Being

This article shows how to optimise your well-being with an 80/20 Approach. Take control of your well-being now!

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Create a Pareto Chart in Excel in 2 steps – Easy Tutorial

The tutorial shows how to create a Pareto Chart in Excel in 2 simple steps after explaining the basics of the Pareto Principle or 20 80 rule.

How to build a Pareto Chart in Google Sheets in 2 Easy Steps

This easy step-by-step tutorial shows how to build a Pareto Chart in Google Sheets. Download now the Free Google Sheets Pareto Chart template for immediate use.

Time Management: 1 Simple Eisenhower Matrix to Get it Right

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Optimize Easily your Well-being with the 80/20 rule Approach

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Why Your Best Time management Tool is Useless? 1 explanation

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The Powerful Pareto Analysis Approach and 20/80 Rule: FAQ

All about the Pareto Principle, Pareto Analysis, 80/20 Rule, Pareto Law, and the Law of the Vital Few. Free Microsoft Excel & Google Sheets Tutorials & Templates

Work Smarter – Get Help Right Now From an Excel VBA Expert

No time to learn VBA for your Excel project? Get it done: Ask a Microsoft Excel VBA Expert. Live Excel Help, Online Excel Assistance, Overnight Project Delivery

Pareto Efficiency / Pareto Optimality: 1 Perfect Allocation

Pareto Efficiency / Pareto Optimality is the highest efficiency level resulting from an optimal allocation where any change to it would make something worse off

Murphy’s Law: 1 Gloomy View On How Things Usually Turn Out

Murphy’s Law is the adage that “Anything that can go wrong will go wrong.” People give Murphy’s Law relevance when things go awry as a reason to why it happened

Laborit’s Law / Law of the Least Effort: 1 clear explanation

Laborit’s Law or the Law of Least Effort suggests that humans prefer to carry out simple tasks that give immediate satisfaction to avoid stress or inconvenience

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