What is the Willie Sutton Rule?

The Willie Sutton Rule is based on a quote by infamous American bank robber Willie Sutton, who said, “Because that’s where the money is,” in response to a reporter’s question on why he stole from banks.

He stated differently that his ultimate objective was money, so why not take the easiest and most successful route and go right to the source rather than wasting time searching for it in obscure or dubious places? The rule applies in various fields, including business, accounting, science, medicine, and investment.

Understanding the Willie Sutton Rule

Historians often explain The Willie Sutton Rule using the legendary investigator Sherlock Holmes from Arthur Conan Doyle as an example. Holmes famously said, “When you have eliminated the impossible, whatever remains, however improbable, must be the truth.” The meanings of the two quotations are the same; they arrive at different conclusions.

The phrase “picking the low-hanging fruit” is analogous to this guideline in the financial sector. To put it another way, if your goal is to profit from the stock market, start by selecting positions that you can easily recognize for what they are. You know what to expect, even if they are not the most significant fruit pieces. You should only reach further into the tree and choose something that could be rotten or never completely mature after looking for the more apparent options.

Regarding investment and the Willie Sutton Rule, another school of thought emphasizes concentrating on high-yielding activities rather than frivolous or low-yielding ones. The same holds for bookkeeping. The management accounting rule states that the highest expenses should be subject to activity-based costing, which involves budgeting based on need and prioritizing appropriately, as that is where the most fantastic savings would eventually be realized.

Rule of Willie Sutton and Medicine

It is a term used in medicine to describe a diagnostic that indicates it is better to treat the obvious first and carry out tests that confirm the most probable diagnosis rather than attempt to treat a relatively unusual medical problem. This method may save excessive expenses associated with pointless medical testing while producing quicker and more precise findings.

Medical students are often taught Sutton’s Law, sometimes called the Willie Sutton Rule. Rather than attempting to identify a somewhat unusual medical issue, it is advisable to concentrate on the obvious first and carry out tests that may confirm the most probable diagnosis. This method may save excessive expenses associated with pointless medical testing while producing quicker and more precise findings.

Conclusion

• According to the Willie Sutton Rule, one should always choose the most apparent path.
• The William Sutton bank robber inspired the name of this rule, which states that investors should often explore more esoteric tactics after attempting lower-hanging fruit.
• In medicine, the rule says that a problem’s most probable diagnosis should be checked before looking into unusual circumstances.