Why do I think growth is better? Growth implies performance that is greater than the S&P. Value implies stocks that are currently below the S&P. A value stock may stay that way for a long time. Once it starts to grow it is no longer a value stock but is now a growth stock.

In a market that has narrow breadth, growth is even more important. Over all time the S&P performance is made up of only about 4% of all stocks. The other 96% underperform. The best way to select growth stocks is cap weighted ETFs. They constantly incrementally buy what is appreciating the most and selling what is what is not.

In 2025 Stars which is considered an aggressive growth strategy outperformed the average of 3 investment companies that manage $15 trillion by 21 percentage points. Typically value investments underperform the S&P by 10 percentage points per year.

If you don’t like ETFs and want to buy stocks, is there a way based on the concepts of the Stars strategy that can be used? I am currently trying a strategy that uses the top ten holdings of TQQQ as your investment options. Each month you pick the stock that has corrected the most or gone up the least over the past year. For January I selected NFLX.. You have 10 increments. Each month I will report what is selected.