High Return, Low Risk—Is It Possible?

Conventional financial wisdom tells us that high returns come with high risk (large drawdowns), which is why financial advisors emphasize risk-adjusted returns and diversification—both of which reduce risk and returns.
But here’s something to consider:

📉 Over the past 20 years, the average holding period for investments has dropped from 6 years to just 6 months.
📉 Shorter holding periods mean higher taxes and lower accuracy—the more frequently you make decisions, the greater the chance for mistakes.

🔹 The Stars Model Approach 🔹
✅ 8-year holding period → No frequent buying and selling, just rebalancing.
✅ Near 100% accuracy → No full-position sales means no realized losses.
✅ Optimized portfolio allocation → Stars can hold up to 40% TQQQ without excessive risk.

Unlike traditional investment strategies that claim you must trade off high returns for lower risk, Stars challenges that notion. By focusing on long holding periods, strategic rebalancing, and precision portfolio construction, Stars achieves both high returns and controlled risk—a combination rarely seen in conventional finance.

Want to learn more about the Stars Model? check out my book: https://lnkd.in/efuUQYbK

💡 What are your thoughts on holding period vs. return potential?