As the holding period of a stock goes up so does the accuracy. If you hold any good stock long enough, it will be above the purchase price. Accuracy increases with both tenor and performance. The Stars model has 100% accuracy after about 2 years because of the high returns.

The easiest way for an investor to have 100% accuracy is to use a buy and hold strategy. Warren Buffet goes on to say that if you don’t have a loss you have more funds for compounding to work on. Also taxes are deferred and minimized.

Why does the average investor have a holding period of 6 months? I would say they are impatient and chasing the latest hot investment. Their accuracy across all timeframes is about 40 – 60%. With a loss you have to earn enough to cover it before you can add to your portfolio performance.

The best portfolio strategy is buy and hold cap weighted ETFs. Less is more. Both your accuracy and performance will increase dramatically.