To improve your portfolio performance is it more important to remove bad performers or add good performers?

The best approach is to do both each year. Sell your worst performers and replace with TQQQ or SPY.

Your worst performer may be as much as 30 percentage points below the S&P. Investors and financial advisors tend to pick stocks that represent good value. These stocks have corrected or pay a high dividend. Value stocks tend to underperform the S&P by 10 percentage points per year. It can take years before you see them respond in substantial upward price movement.

TQQQ and SPY outperform almost everything else for a buy and hold strategy by constantly incrementally selling stocks that are falling in price and buying more of stocks that are rising the most. This is exactly what you should do with your portfolio to increase its performance. If you want to buy individual stocks, you may want to buy the top 8 holding in TQQQ that has corrected the most over the past year. Sell it if it falls out of the top 10.

Over the past 16 months the Stars buy and hold strategy has outperformed the S&P by 12 percentage points. By comparison the average of Berkshire Hathaway, Blackrock, and Blackstone have underperformed Stars by 42 percentage points. Stars outperformance is 12 percentage points but the other three had underperformance of 30 percentage points. Not only was underperformance the biggest problem but it was mostly due to one holding.