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Does Your Advisor Buy & Hold Underperforming Investments and Have No Sell Discipline or Strategy?
Third-Party TSG/Spaulding Group Verifies: This Portfolio Has Beaten the S&P 500 for 6 Years Running
Over the past few weeks, we've analyzed numerous stock and retirement portfolios. The results? Clients are paying high fees yet failing to beat the S&P 500. While underperformance might be acceptable if you’re mitigating risk, our findings show that many advisors aren't even doing that. They're holding onto losing positions with no clear strategy.
Here are the two biggest issues we've uncovered:
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Holding Underperforming Investments
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No Sell Discipline or Strategy
Here’s how Core OEX picks its 20 stocks:
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Is the company in an uptrend? Basic supply and demand—just like the grocery store in the next example.
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Short-term performance compared to the market
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Long-term performance compared to the market
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Short-term performance compared to its peers
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Long-term performance compared to its peers
Let me explain...
Imagine you're at the grocery store, searching for your favorite fruit. When you find the shelf empty, you know that fruit is in high demand. This is a basic principle of supply and demand. The same principle applies to investments: if a stock is in demand, it might be worth owning.
This is the first of Core OEX’s 5-Attribute system: Is the investment in demand? Is it worth adding to your portfolio? Our manager learned this time-tested approach over 20 years ago.
With Core OEX’s 5-Attribute management style, we’ve consistently outperformed the S&P 500 every year for the past seven years. And we don't just claim it—third-party verification proves it.
So, where does our inventory come from? We start with the S&P 500, the 500 largest companies in America. This list is always evolving, replacing underperforming companies with stronger ones. But we take it further by narrowing our focus to the S&P 100, the largest 100 companies. From there, Core OEX selects the top 20 stocks based on the following criteria—and can move to cash if the market trends downward, like before the COVID sell-off.
The Results Speak for Themselves:
According to Nasdaq Dorsey Wright and The Spaulding Group, over the past 6 years, Core OEX has outperformed the S&P 500 by 32.2%. Core OEX’s average return stands at 20.57%, compared to the S&P 500’s 15.16%.
CORE OEX vs. S&P 500
2017
2018
2019
2020
2021
2022
2023
2024
Cumulative
S&P 500
21.83%
-4.38%
31.49%
18.40%
28.71%
-18.11%
26.29%
25.02%
298.78%
CORE OEX/Philip Rongo
28.83%
-1.48%
33.09%
19.47%
29.80%
-14.69%
27.69%
42.95%
407.91%
2017-2024
Upside Capture Ratio
Downside Capture Ratio
123.03%
71.89%
Sources: Nasdaq Dorsey Wright, The Spaulding Group
In the financial industry around…
So, how can you tell if your advisor is "minding the store" and stocking your portfolio with winners?
As per The Spaulding Groups assessment beating the S&P makes CORE OEX a Unicorn investor from 2017 – 2022.
We recently reviewed a portfolio containing 38 investments. 21 companies that Core OEX would hold, and this same portfolio also holds the S&P 500, which Core OEX consistently outperforms. That means 29 holdings in this portfolio are underperforming and should be sold. This is a clear sign that the advisor lacks a Sell Discipline or Strategy.
What Are the Results?
How has this compared to CORE OEX and the S&P 500?
Sources: Nasdaq Dorsey Wright, The Spaulding Group
When we analyzed these holdings, two things became clear:
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Underperforming Investments
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23 holdings are underperforming and wouldn’t be in the Core OEX Portfolio.
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No Sell Discipline and No Strategy
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Despite a significant gain in some holdings, the advisor has no plan to lock in gains when LLY retraces. Core OEX allows winners to run but ensures gains are protected with a solid Sell Strategy.
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If your advisor isn't doing this, it’s time to ask some tough questions. Is your portfolio set up to win—or is it just collecting dust?
What is Your Advisor's Strategy on the Current Market Volatility?
Most advisors follow the same tired playbook:
📌 Buy and hold.
📌 Asset Allocate
📌 Stay the course—it’ll come back.
📌 No Sell Strategy
But that’s not how we operate.
We use a strategy pioneered by Charles Dow—founder of The Wall Street Journal and the Dow Jones Index—dating back to the 1880s. It’s a time-tested method that has helped us outperform the S&P 500 on the upside and not losing as much on the down side.
🔹 In 2018, when the S&P 500 dropped 38%, we were 70% in cash.
🔹 Our 5-Attribute System delivered almost double the returns of the S&P 500 in 2024.
This strategy is based on simple supply and demand rules!
So, what are we seeing right now?
📊 The percentage of stocks in an uptrend versus a downtrend is shifting.
📊 Gold is showing stronger relative strength than the S&P 500.
📊 International stocks—out of favor since 2008—are beginning to outperform the S&P.
What are we doing?
1. As stocks break down and reverse trend into a downtrend signaling to sell, we are selling and going to cash for the time being.
2. It’s early, and trends can reverse. But we’re watching closely—
so you don’t have to.
✅ Which positions to hold and which to sell.
✅ The right time to sell—before losses mount.
✅ How each investment ranks based on:
• Short-term and long-term strength versus the market.
• Short-term and long-term strength versus its peers.
• The overall trend of the company.
This is different from most advisors because most don't have a sell strategy.
What should you do now?
Our 5-Attribute Analysis helps you determine:
Call or Email to Schedule Your No Obligation Appointment...
+1 (941) 800-2424
Here Is The Deal: If You Want…
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A portfolio of 4 and 5 Attribute Investments
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To Stop Holding Underperforming Investments
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A Disciplined Sell Strategy…
Get a No Obligation Portfolio Review and Strategy Session
Call (941) 800-2424
The information provided in this communication is for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any particular security or investment. Past performance is not indicative of future results, and all investments involve risk, including the potential loss of principal. It is important to conduct your own research and consult with a qualified financial advisor before making any investment decisions. The opinions expressed herein are those of the author and do not necessarily reflect the views of the firm. This material is based on information believed to be reliable, but no warranty is given regarding its accuracy or completeness.