For most, it simply means buying and holding the S&P 500. They add to their positions through work contributions, don’t sell during corrections, and occasionally buy more when prices drop.

Some founders hold company stock for decades. Others inherit shares and hang on for sentimental reasons. But very few investors truly understand what to hold long term — or why.

The best long-term holdings are cap-weighted ETFs.

These ETFs continuously adjust: incrementally buying stocks that are rising and selling those that are falling.

The Stars model follows this principle by holding SPY and TQQQ, rebalancing annually to prevent excessive concentration in TQQQ that could lead to large drawdowns. During market corrections, Stars rebalances by buying additional TQQQ shares at deep discounts — often around twenty cents on the dollar.
Stars also remains 100% invested at all times because the opportunity cost of sitting out the market is simply too high.

📈 Over the past 26 years, Stars has outperformed the S&P by a factor of 17.