Rich Selection Bias: Why High Returns Come From

The biggest reason the rich get richer (besides compounding) is they avoid things that don't make enough money. The more money you have, the more selective you are about which things are worth doing because fewer things move the needle for you. If you make decisions like you have a lot of money, you make more faster. This rich selection bias is arguably one of the most important because it denotes where they allocate their attention - and as a result - get more for what they put in. Opportunity vehicle selection, rather than pure effort, is why they get such high returns.