Warren Buffet says rule 1 is never lose money. He goes on to say start early so that compounding can work for you. Lastly you want to reduce risk to an acceptable level by diversification or some other means.

A buy and hold strategy accomplishes all of these criteria. When you hold for a long time eventually most good investments will appreciate so that you do not have a loss. Always being invested allows compounding to occur. Over time you will have acquired different investments which will diversify your portfolio.

Does the Stars model meet these requirements? Yes. The Stars buy and hold strategy has an 8 year holding period. The returns are so high that after a couple years there are no losses. That means the accuracy is 100% and the real risk is zero. Stars holds 600 stocks so it is diversified although it does not hold underperforming assets such as bonds and value stocks.

Stars uses two ETFs to pick the stocks based on relative price performance. The two ETFs buy what is rising the most and selling what is falling. This is done incrementally all the time. Stars rebalances annually so that the percentage TQQQ doesn’t get too high which would cause drawdown to be excessive. Rebalancing in major corrections allows the purchase of additional TQQQ at very reduced prices.

Stars uses the first principles of investing to create what is possibly the greatest money making machine ever.