Many investors think they can pick stocks that will outperform the market. They hold these stocks on average 6 months. All the S&P performance is made by only 4% of all stocks. The result is that investors underperform the market by 5% per year. This has been going on for 70 years.

What is the solution for the investor that wants a long term buy and hold strategy? Cap weighted ETFs are always trying to hold the best performing stocks. They gradually change what they hold based on relative price performance. Which ETFs are the best to hold? The Stars buy and hold strategy uses SPY and TQQQ.

SPY is the S&P. 85% of investors can’t beat this so it is the base holding in Stars. TQQQ is a triple on a daily basis of the NASDAQ. It has an average annual volatility of 4 times SPY. This volatility is what gives Stars its phenomenal performance.

How do I turn my portfolio into a buy and hold portfolio? I would do it gradually. Each year sell the worst 10% of your portfolio and buy either SPY or TQQQ depending on your comfort level with TQQQ. When the market has a 10% correction in the S&P at year end, buy up to 40% TQQQ. This is the safest time to buy TQQQ. The outperformance the following two years is about 100 percentage points above the S&P.

Learn about the Stars model. It is the best buy and hold strategy available. Stars ranks number 18 when compared to the greatest investors of all time. The top 17 are not available for investment.