These index funds are cap weighted. The larger companies have a higher weighting than the smaller ones.

You probably think buying and holding the S&P is not a model but the cap weighting feature means you own more of the best performing stocks in the S&P. This model is so good that for 70 years 85% of investors couldn’t beat it.

Warren Buffet thought Jack Bogel did more for the investor than anyone else because he added 5 percentage points per year to everyone’s portfolio. Currently Warren holds the same opinion as Jack that nobody can consistently beat the S&P. Warren bet hedge funds they could not beat the S&P after commissions and he won.

Warren provides the core of what I used in develop the Stars model. Buy and hold is the best strategy because you give your portfolio time to compound. It also defers taxes. Warren also bought more investments on major corporations. I disagree with him that your portfolio can’t beat the S&P. The Stars model which I think is the next generation of model based investing earns twice the S&P.

Stars is a very simple model. It takes owning the S&P and adds volatility in the form of TQQQ to intentionally create greater corrections so that many more shares can be bought at greatly reduced prices. The key is that your portfolio contains the best long term performing stocks. After a major correction your portfolio is at new highs in two years.

When compared to the greatest investors of all time Stars ranks number 18. The top 17 are no longer available for investment.