Just how good is the Stars model?
How does it compare to the greatest traders of all time? Many of these are long term investors but many others are known as traders.
Stars 21% for 26 years puts Stars in 43rd place. Stars 32% for 14 years puts Stars in 18th place.
Unlike the others the Stars model is available to all. It is documented in my book, on my website, and in my 250 blogs. The fixed rules take one hour per year. The model needs no knowledge of market direction or stock selection. In 26 years there are 46 trades during annual rebalancing. Stars performance is repeatable because it does the same thing over and over. The performance depends on the type of market. It can vary from 8 to 27 percentage points per year above the S&P. The performance is about the same for both rising and correcting markets if you include the two years after the correction as part of the correction.
If you compare the performance of Stars to Berkshire Hathaway, Stars 26 year performance is 2 percentage points less than Berkshire Hathaway’s 53 year performance. However over the past 14 years Stars is a whopping 19 percentage points per year greater than Berkshire Hathaway.
By any measure Stars is a great investment vehicle for the investor.