Formula for Success: The Lucky Get Rich
The Italian University of Catania (Università degli Studi di Catania) learned that the formula for success is pure chance based on luck. University scientists conducted a study during which they came to unexpected results – well-being directly depends on luck. And this is pure mathematics.
The researchers created a mathematical model of the process of enrichment of an individual in society and calculated that this very process depends solely on personal luck.
Tales about “Lady Luck" are not fiction. It is now scientifically proven that the desire to earn more does not guarantee that in the end you will become rich. In addition, your talents and abilities also do not affect the size of the wallet. Mathematically, this can be formulated as "increased luck in the process of economic financial processes." So how did scientists calculate “Lady Luck”?
The formula for success is calculated using agent-based modeling
To make the formula of success as accurate as possible, the authors of the method recreated the behavioral patterns of thousands of people, based on modern ideas about intelligence and success.
All the people whose behavioral features were recreated in the calculation formula possessed various “skills” (skills), which theoretically should influence successful economic contacts in society and lead to wealth. The bulk of the “models” (people), about 67%, were endowed with average statistical capabilities (“skills”), talented models and those who did not even have average performance were also recreated.
The basis for modeling the skills and behavior of mathematical models has become the ideas in modern society about the capabilities of the intellect and other abilities.
What does "modern ideas" mean?
Models-people in the formula by themselves – do not move relative to the economy or the overall activities of society in a particular industry. But they are subject to the influence of so-called "moving events". These events affect the financial well-being of individual human models and lead to two polar collisions:
- “green events” are happy and enriching;
- "red events" – lead human models to poverty, ruin or major financial losses.
So, the theory, in which collisions are distributed in the manner described above, says that events should be evenly distributed between the “green” and “red” poles. But practice has shown that this is possible if we do not limit the time for calculating this particular formula. That is, if the people from the formula live forever.
But models (people) live for a limited amount of time (existence in the real world for people is limited), so the resource of well-being is distributed unevenly.
Since eternal life is still an unattainable value for us, it also seems impossible to “catch luck by the tail” by calculating the trajectory of its movement. Luck moves as it sees fit and creates excess potentials that affect people's lives regardless of their skills and abilities.
It turns out that someone feels the influence of luck and an excess of events leads him to wealth, while someone falls under the millstone of accidents and, on the contrary, an excess of unfortunate coincidences leads to his ruin.
The formula for success and the Pareto law
During the experiment, scientists simulated a period of 40 years. It turned out that within 40 years, 80% of the wealth is in 20% of people. Have you seen these numbers before? All right. This law corresponds to the Pareto law. If you remember him, then the experimental data should not surprise you. What then is the peculiarity of this experiment?
But we were not attracted by the confirmation of the well-known rule that works for many countries from the “golden billion” list.
We know that, for example, the “third world” lives according to different laws, and human models from the experiment, who are endowed with outstanding talents and positive personal qualities, do not always fall into the top twenty of the “richest”.
The experiment showed that rich "people" have abilities that hardly exceed the middle mark (average abilities).
Formula for success: conclusions and solutions
Conclusion: It is not very rational to allocate funding for projects based on the success of scientists in the past (namely, grants are issued according to this principle);
Solution: Grants should be distributed, as far as possible, equally distributed among scientists of varying degrees of fame.
Conclusion: Investments in companies with good karma cannot be considered immune from spontaneous market fluctuations;
Solution: Investments should not be made based solely on the success of the company, luck has its own opinion about the processes in the financial market and can at any moment turn away from those who are smiling at the moment.
Therefore, experienced investors, for example, call some ways of investing in cryptocurrency – playing roulette. And they are in no hurry to invest in coins that have proven themselves to be stable. Stability is generally a conditional concept for the crypto-financial industry.
Meanwhile, luck seems to have its own opinion and, probably, intelligence. Perhaps tomorrow we will be able to calculate her IQ. In the meantime, we know nothing about her, except that her benevolence has a fickle and windy character. Therefore, when taking risks, do not forget to correlate the result and possible losses.
How to become rich? Nothing, unless you have learned to surf on the waves of success and failure, without looking back at the behavior of others.
Don't focus on your wins and treat investing and receiving grants like a game.
Previous merits do not guarantee you success in the future, since it directly depends on luck, but even mathematicians cannot accurately calculate who she will choose.