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- Understanding the 20% that generates 80% of the results
Understanding the 20% that generates 80% of the results
I'd like to share with you a concept that's essential to me in the world of investments: the MVK, or Minimum Viable Knowledge—the level of knowledge needed.
You've probably heard of MVP (Minimum Viable Product) in the business realm. It's the minimal product that allows testing an idea or a market.
But what about investments?
It's about having the basic knowledge necessary to make an informed decision without getting lost in the details. Since the level of knowledge is considered infinite, we can agree that establishing a minimum knowledge level is crucial to truly get started.
Understanding the 20% that generates 80% of the results.
Here's a comparison of different investments and what you need to know to start:
💸 Crypto: How to buy and sell cryptocurrencies
💹 Stock Market: How to buy and sell stocks
🏡 Real Estate: Understanding fees, market prices, finding affordable properties that are easily sellable
Here's the classic pattern without MVK:

And with MVK:

You don't need to be a genius to figure out who's going to earn more.
Remember: MVK isn't just an idea; it's a way of thinking that can help you succeed in your investments. I hope these reflections are useful in your efforts to build and manage your portfolio.
Happy investing, everyone!
Antoine
PS: And guess what? It works the same way in a bear market too :)
