A Strategy for All Seasons

In the ever-evolving landscape of investing, where market volatility, shifting economic cycles, and media noise often blur the path to consistent returns, having a simple, effective, and reliable investment strategy is more critical than ever. For investors seeking long-term success without the burden of constantly monitoring the market or reacting to every macroeconomic headline, Investoristic’s 3-factor investment model offers a compelling solution. This approach, grounded in decades of academic research and real-world practicality, provides an elegant and powerful strategy that eliminates the guesswork and delivers consistent outperformance — all with a minimal time commitment and a refreshingly simple implementation process.

Most investors, whether individual or institutional, face the challenge of navigating uncertain markets. From inflation scares to interest rate swings, from geopolitical events to sector rotations, the investing environment is never static. In response, many investment approaches rely heavily on forecasting or dynamic adjustments — tweaking allocations based on perceived economic cycles or expected Fed moves. The problem is that such predictive strategies rarely work consistently. Accurately forecasting macroeconomic shifts is notoriously difficult, and even seasoned professionals often get it wrong. Worse still, models that rely on dynamic weighting of factors such as value, growth, or momentum may perform well in one environment but collapse in another if the weights no longer apply.

Investoristic’s 3-factor model addresses this problem head-on by offering an all-weather framework that performs reliably across a wide range of market environments. The model focuses on three timeless and proven attributes: value, growth, and quality. Rather than trying to predict the future or adapt dynamically to changing conditions, this model ranks and selects stocks based on their performance in these three categories, using consistent metrics and fixed weights. The strategy is designed to cut through noise and uncertainty by selecting the best 10 stocks in the S&P 500 based on these fundamental factors — and it does so with just one rebalance per year.

Simplicity Without Sacrificing Performance

One of the most remarkable aspects of the Investoristic strategy is that despite its simplicity, it delivers superior results. Backtests over the past 24 years show that the strategy outperforms the S&P 500 by more than 6% annually, with substantially lower drawdowns and greater stability. In fact, the strategy has won in 100% of all rolling 10-year periods and 90% of rolling 5-year periods. This level of consistency is rare, especially for a strategy that does not change its rules or rely on complex hedging mechanisms.

Even more compelling is the model’s current real-world performance. As of this writing, amid heightened market volatility driven by recent tariff announcements and broader economic concerns, the Investoristic 3-factor model is up 1.33%, while the S&P 500 is down -8.47%. This outperformance is not only impressive — it is a clear validation of the model’s ability to protect capital and generate positive returns during uncertain periods. It reflects how the strategy’s focus on fundamentally strong, attractively valued, and growing companies acts as a natural defense against market-wide declines, while still positioning the portfolio for long-term appreciation.

This level of performance — particularly in volatile environments — isn’t achieved by chance. It’s the direct result of a disciplined selection process that ignores market noise and focuses on quality fundamentals. The annual rebalancing process keeps implementation straightforward and transaction costs low. Investors simply replace the existing 10 holdings with the new top-ranked companies each year, based on the latest data. That’s it — no trading every quarter, no macro calls, and no guessing about where the market is headed.

The Power of Fixed Factors

A key reason for the long-term success of this strategy is its disciplined use of fixed factor weights. Many investors fall into the trap of trying to optimize models by changing factor exposures based on recent performance or prevailing economic themes. For example, they might overweight growth stocks during bull markets or pivot to value during downturns. But this kind of tactical allocation often underperforms over time because it depends on perfectly timing the shift in market leadership — a notoriously difficult feat.

Investoristic’s model avoids this by using fixed, equally weighted rankings across the three core factors. This ensures that the portfolio always includes companies that exhibit a blend of value, growth, and quality, regardless of the market regime. As a result, it consistently captures upside when markets rally, while also maintaining downside protection during corrections. There’s no need to second-guess the optimal mix of factors. The model’s long-term success — and its current strong performance during a challenging market — proves that a balanced, disciplined approach is more effective than chasing performance or trying to outthink the market.

Ideal for Serious Investors

This approach is ideally suited for investors who want superior results without complexity. Whether you’re a high-net-worth individual, a family office, or a fiduciary managing long-term capital, the 10-stock model offers the liquidity and transparency needed to implement the strategy with confidence. All stocks are drawn from the S&P 500, ensuring high liquidity, low trading costs, and no exposure to obscure or thinly traded companies. That also makes it scalable — a critical feature for larger portfolios seeking a concentrated, yet robust allocation.

And because the model is grounded in fundamentals rather than technical indicators or speculative themes, it appeals to investors who prioritize stewardship, reliability, and sustainability in their investment philosophy. There’s no need to rotate sectors, time interest rate changes, or watch for geopolitical surprises. Instead, you stay invested in the most compelling companies — those with healthy balance sheets, strong returns on capital, earnings momentum, and attractive relative valuations.

Take the Guesswork Out of Investing

The beauty of the Investoristic 3-factor model is that it removes the guesswork that plagues so many investing decisions. You no longer need to ask:

• Is this the year value stocks come back?

• Will rising interest rates hurt growth stocks?

• Should I increase my quality exposure in a recession?

With this strategy, the answer is always the same: stay the course and follow the model. Let the numbers — not emotions or headlines — guide your decisions. And by doing so, you put yourself in a position to outperform most professional investors, while spending just a fraction of the time and energy they do.

This approach is not about chasing the hottest trends or trying to outperform in every quarter. It’s about compounding wealth over decades, with lower risk and greater confidence. And with only 10 stocks, it’s easy to manage and monitor, especially for individual investors or advisors looking for a clean, research-driven core strategy.

Proven Results, Real Discipline

Investing success doesn’t come from complexity — it comes from discipline, consistency, and a sound framework. The Investoristic 3-factor model embodies all three. It has delivered strong returns, minimized drawdowns, and remained durable across crises, including the dot-com bubble, the global financial crisis, and the COVID-19 pandemic. Even in the most extreme environments, it has proven its worth by sticking to fundamentals and avoiding the noise.

More importantly, the model empowers investors to be proactive, not reactive. It creates a repeatable process that can be followed year after year, enabling investors to make rational decisions regardless of what’s happening in the broader market. In doing so, it reduces stress, improves outcomes, and restores confidence in long-term investing.

Conclusion: A Smarter, Simpler Way Forward

In today’s market, investors need more than just access to information or flashy tools — they need a clear, proven path to success. The Investoristic 3-factor strategy delivers exactly that. By focusing on value, growth, and quality, it captures the best attributes of enduring businesses. By requiring only annual rebalancing, it offers simplicity and peace of mind. And by consistently beating the market over rolling periods — and outperforming even in today’s volatile conditions — it offers a track record that few strategies can match.

Whether you’re building a personal nest egg, managing family wealth, or advising clients, this 10-stock approach offers a smarter, simpler way forward. No more guessing, no more reacting — just reliable, long-term performance based on what has always worked in investing.

Now is the time to take control of your future and embrace a strategy that works in any environment. Let Investoristic’s 3-factor model do the heavy lifting, so you can focus on what matters most: growing and protecting your wealth with confidence.