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.
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Thanks for watching and until next.