“The VII Strategy Came Out Ahead About 90 Percent of the Time. Almost Always by Hundreds of Thousands of Dollars. In Rare Cases, It Would be Ahead by a Million or More. And in Rare Cases the BH Strategy Would be a Little Bit Ahead. The Most Common Scenario Was That the VII Portfolio Would Be Ahead by $300,000 or a Bit More Than That.”

Set forth below is the text of a comment that I recently posted to the discussion thread for another blog entry at this site:

Where did you get those numbers?  What size account are you those based on?  Show us the specific calculations you used.

John Walter Russell and I built a calculator together a number of years back. It permits the user to compare how he would do over a 30-year time-period using a Buy-and-Hold strategy with how he would do using a Valuation-Informed Indexing strategy, based on how stocks have always performed in the past.

The VII strategy came out ahead about 90 percent of the time. Almost always by hundreds of thousands of dollars. In rare cases, it would be ahead by a million or more. And in rare cases the BH strategy would be a little bit ahead. The most common scenario was that the VII portfolio would be ahead by $300,000 or a bit more than that.

Following a research-based strategy puts the odds heavily in your favor. And the gains accumulate and accumulate over time.

Rob