Buy High, Sell Low: Lessons from the S&P
85% of investors can’t beat the S&P. What’s the secret?
The S&P incrementally buys higher and sells lower. Despite this, it outperforms 85% of investors. Why? Meanwhile, I always bought low and sold high-yet I’ve seen friends thrive with two simple strategies
- Buy and hold
- Buy good stocks and never sell them
Enter Seedlings-a breakout model that buys stocks once they’re up 100% in 3 months.
Currently, the model holds 40 stocks, with an average range of 900% over the past year. Two stocks are up
4,000%. Why? Because:
- The most a stock can drop is 100%
- The potential upside is unlimited
Complementing Seedlings is the Stars model, which holds SPY and TQOQ. Both strategies constantly improve by incrementally buying higher and selling lower.
Remember:
BUY HIGH – SELL LOW