Skewness
How lopsided a distribution is. In a right-skewed distribution most values are small and a few are very large, so the mean sits above the median and a handful of cases dominate the total.
In plain English
Task durations, incomes, city sizes and stock returns over long periods are all right-skewed. With skewed data, counting items tells you little about their total: the biggest few can make up most of it. Look at the median and the largest values, not just the mean.
Uncle Gary explains
In a simulation of 20 lopsided tasks done shortest first, 90% of the tasks were finished with only 65% of the time used; the last task alone took about 22%.
Why it matters for your money
A portfolio's returns usually come from a few big winners. Selling 90% of your positions can mean selling a small part of your money, or the part that mattered most.
Where we tested it
- The 90-90 Rule: Why '90% Done' Means Two-Thirds of the Way There
- Price's Law: Does the Square Root of the Team Really Do Half the Work?
- Should You Buy Stocks at All-Time Highs? We Tested 6,000 Breakouts
Related terms
All glossary terms. Educational content, not financial advice.