When was the last time you audited your portfolio?
Every investor should do a 5-year performance review of their holdings—because short-term wins can mask long-term underperformance.
The S&P 500 (via SPY) is the gold standard for benchmarking. A true review means asking: How has my portfolio performed compared to the S&P over the past 5 years?
Here’s how to calculate relative performance in 3 simple steps:
1️⃣ Divide the current value of your holding by its value 5 years ago.
2️⃣ Raise that ratio to the 0.2 power, subtract 1, and multiply by 100 to get your compound annual return.
3️⃣ Do the same for SPY. Then subtract SPY’s return from your holding’s return. That’s your relative performance.
📉 Most portfolios lag the S&P by 5 percentage points over 5 years. Why? Too many low performers.
✅ Want to fix it?
Cut your worst-performing assets.
Add TQQQ and follow the Stars model rules.
Every 10% of TQQQ you add can boost your portfolio by 5 percentage points relative to the S&P.
🔗 Learn more in Earn Twice the S&P: