How to maximize return on investment?
The distribution of wealth follows a well-known pattern 80 percent of the wealth is owned by 20 percent of the people.
The distribution of wealth is among the most controversial because of the issues it raises about fairness and merit. Just eight men have a total wealth equivalent to that of the world’s poorest 3.8 billion people. Why should so few people have so much wealth?
We live in a meritocracy in which people are rewarded for their talent, intelligence, effort, and so on.
Some people work more hours than average and some work less, but nobody works a billion times more hours than anybody else. And yet when it comes to the rewards for this work, some people do have billions of times more wealth than other people.
The most successful people are not the most talented... But just the luckiest.
Studies have shown that the wealthiest people are generally not the most talented by other measures. What factors, then, determine how individuals become wealthy?
Could it be that chance plays a bigger role than anybody expected?
The creation of random lucky events. The wealthiest individuals are the luckiest.
Which strategy is the best?
The strategy that delivers the best returns, it turns out, is to divide the funding equally among all researchers. It involve distributing at random to 10 or 20 percent of each. This approach could be applied to investment in other kinds of enterprises, such as small or large businesses, tech startups, education that increases talent.