Most financial advisors talk about risk-adjusted returns and diversification. But here’s the truth: if making money isn’t the primary goal, you’ll likely underperform both the Stars model and the S&P 500.

There are 3 types of risk worth understanding:

Wiggle risk – short-term price movement

Real risk – long-term loss when you sell

Lost opportunity cost – the price of not being in the best-performing investment

For long-term investors, short-term wiggle risk shouldn’t matter. The Stars model’s average holding period is 8 years—and after 8 years, your investment typically grows 9x. Even with a correction, you’re still above your purchase price.

But here’s the kicker:

Not being in the best version of the Stars model costs you 19 percentage points per year versus the S&P, and 24 percentage points versus the average investor.
The takeaway?

Real risk and lost opportunity cost matter more than short-term noise. If your goal is to outperform, you need to be in the best version of the Stars model.