Most of the S&P’s long-term outperformance comes from long-term investing strategies
The early years of Berkshire Hathaway are a perfect example.
Yet most investors today act like traders, with holding periods of six months or less. The thinking is that many short-term trades will add up to more than one long-term trade.
In practice, this often means:
✅ High taxes due to short-term capital gains
✅ Low accuracy (only 40–60% win rates)
✅ Continuous pressure to find the next opportunity — which statistically only has a 15% chance of beating the S&P
By contrast, long-term investing approaches 100% accuracy over time.
That’s where the Stars model comes in.
Stars is a proven, repeatable system that has achieved a 32% average annual return over the past 14 years — using only 40–60% of the portfolio. The remaining capital is freed up for other ideas.
And we’re not stopping there:
→ Adding intra-year corrections could add up to 10 percentage points per year.
→ A directional options model will use up to 3% of the portfolio to capture short and long opportunities.
→ A breakout model will target the next wave of companies before they enter TQQQ — utilizing up to 25% of the portfolio.
Stars is already one of the most robust strategies I’ve seen, and it will continue to improve. Long-term, disciplined strategies win — and Stars is built to do exactly that.