“All intelligent people should think in terms of lost opportunity cost. When deciding whether to do something, compare it with the best opportunity you have.”

Notice he didn’t mention cutting costs, diversification, or risk-adjusted returns.

📉 Over the past 20 years, the average investor underperformed the S&P by 5 percentage points annually.

📈 Meanwhile, the best version of the Stars model has outperformed the S&P by 19 percentage points per year over the last 14 years.
That’s a lost opportunity cost of up to 24% per year—not once, but every year.
Over 5 years? That compounds to a staggering 120%.

When viewed through this lens, occasional drawdowns in the Stars model look far less significant—especially in a buy-and-hold strategy, where losses only become real if you sell.

💡 Smart investors focus on maximizing potential, not avoiding discomfort.
Consider the Stars model. Reduce your lost opportunity cost. Make intelligence your edge.