Almost everyone believes there is no such thing as an investment with zero risk.

However, 100% accuracy implies zero real risk.

The easiest way to have 100% accuracy is buy and hold strategies. They have very long holding periods. Great investments with high returns reach 100% accuracy within a few years because you never have a loss. The current price is way above the purchase price.

Equity investments are treated very differently when it comes to risk. Since the average investor holding period is 6 months, short term equity volatility is used to define risk. This works for short term trades but not for long term buy and hold strategies. For instance in real estate no one worries about short term volatility. Investors consider long term investments in real estate to be almost risk free.

A better measure of buy and hold risk is performance. All drawdown during corrections is included in the performance. There is no effect since you do not sell. In fact at bottoms you should buy more at the cheap prices. Stars holds some TQQQ which has an average annual volatility of 4. Even so Stars outperforms the S&P by a factor of 17 over the past 26 years.

All the outperformance of the Stars strategy is due to TQQQ which has very high volatility. The other Stars holding is SPY (the S&P) which has no risk because it is the reference for defining risk. SPY has no market risk because it is the market.

The question becomes what can you hold for a very long time? SPY is obviously a great choice because 85% of investors can’t beat it. In my opinion the absolute best other holding is TQQQ because of the volatility and because it is constantly trying to hold the best long term stocks (excluding financials). These two cap weighted ETFs pick the stocks for you and continuously improve what they hold.

Phenomenal performance can be had by a buy and hold strategy that has cap weighted ETFs and uses annual rebalancing to capture the volatility of TQQQ. Eliminating volatility in a portfolio dramatically reduces performance.