Beating the S&P: Why the Stars Model Was Just the Beginning
Forty years ago, dollar cost averaging into the S&P 500 became the gold standard for everyday investors. It was simple, reliable, and outperformed the majority of alternatives. To this day, only 15% of investors consistently beat the S&P, and the average investor underperforms by about 5%.
That statistic drove the foundation of my work.
The Stars model didn’t start from scratch—it started with what was already working: the S&P buy-and-hold strategy. But to truly elevate performance, I integrated a 40% allocation of TQQQ into the portfolio. This amplified the potential return and transformed the base strategy into something far more powerful.
In its best version (a 40/60 TQQQ/S&P split), the Stars model delivers 2.5x the return of the S&P, outperforming even the best-performing ETF of the last decade by 10 percentage points. This model offers a new benchmark—one that shows what’s possible when you build strategically on what works.
But I’m not stopping there.
To create something better than Stars, the starting point must be a 32% return model—leaving 60% of the portfolio flexible enough to add new modules that continue beating the S&P. Every percentage point over the S&P compounds into long-term performance gains.
Right now, I’m working on two new models:
- A breakout model that uses 50 small, diversified investments
- A directional trading model built around options strategies
The goal is always the same: consistent, superior performance with measurable, proven results.
💬 I’m curious—what strategies or models are you exploring to go beyond the S&P? Let’s start a conversation. Share your ideas in the comments or message me directly.