This is Motley Fool Answers. I'm Alison Southwick and I'm joined as always by Robert Brokamp,

personal finance expert here at the Motley Fool. I figure I should probably say your name

correctly every now and then. Hey, bro. Just fine. How are you, Allison? Doing so good. In this week's episode, Bro and Motley Fool Wealth's Megan Brinsfield

interview Bola Shakunbi, the founder of Clever Girl Finance. All that and more on this

week's episode of Molly Full Answers. So, bro, what's up? Well, I've got a couple of things for you.

No, I want three.

Just make up a third.

Okay.

I can if you'd like.

Let's see how the first two go, okay, shall we?

All right.

So number one, the Pareto portfolio.

So you may have heard of the Pareto Princi principle, which states that 20% of the inputs are

responsible for 80% of the outputs. It's named after Italian economist Vilfredo Pareto, who in 1906

found that 80% of the land in Italy was owned by 20% of the population. And then he subsequently

found that this applied to wealth distribution

in other countries as well. It turns out it also applies to stock returns. So these days,

we're hearing a lot about how the market is being driven by a handful of big companies. Something like

the biggest five stocks in the S&P 500 are up like 50% for the year on average, while the bottom 495

are slightly down or flat, depending on when you're listening to this. But this actually

isn't new over the long term. Most stocks underperform the market, and it's a handful of outperformers

that really boost returns. We cited studies on this topic before, but a recent one just came out and I thought I'd

...