The "Matthew Effect" describes a social psychological phenomenon where "the rich get richer and the poor get poorer," which is also applicable in fields such as education, finance, science, and investment.

Once something achieves success in certain aspects (such as money, reputation, or status), it gains an accumulative advantage, leading to more opportunities for greater success.

From an investment perspective, the "Matthew Effect" reflects the compound interest effect and scale effect of capital. Wealth tends to favor enterprises and individuals with more capital and stronger investment capabilities. They possess more investment strategies and mindsets to grow their wealth, and their ample principal allows them to earn higher returns and accumulate wealth faster. However, ordinary people are often excluded from many investment products due to a lack of financial awareness and limited capital. The meager returns from their small principal are minimal, leaving them with little gain. As a result, a clear polarization emerges in the investment field, exemplifying the Matthew Effect.

Applications of the Matthew Effect:

Examples of the Matthew Effect in daily life are countless:

For instance, capital, resources, and talent often flow more to developed regions, making them even more developed while leaving underdeveloped regions further behind, widening the gap between the two. Prestigious universities hold significant advantages in funding, faculty, and other aspects, while ordinary universities are mostly at a disadvantage. Harvard University's alumni endowment fund reached $30-40 billion years ago, and this massive fund continues to grow, being invested in better infrastructure, further widening the gap with smaller-scale schools. The recently concluded World Cup intensified the Matthew Effect in the TV industry. Hisense TVs achieved a 30% market share across all sales channels, far ahead of competitors. As an official sponsor of the World Cup, it accelerated its growth and extended its leading advantage.

As ordinary individuals, we should strive to break the "Matthew Effect" by continuously investing in ourselves to become part of the group that keeps getting better. Only when you possess certain advantages will the Matthew Effect help gather the resources and good luck you need around you, enabling you to achieve a better version of yourself.