The Sharpe Income category be found by clicking on that red ‘Sharpe Income’ tag next to this post title, or by clicking here.
We continue the discussion from the last entry.
First, a bit of house-keeping …
We began this project with $500. All in an effort to help out the small retail investor understand the importance of growing an income account, as opposed to a trading account. The following numbers are taken from our PDF that is attached below. Remember that the numbers are computed off of Friday’s close …
Sharpe Income Balance: $1,678.00
Sharpe Income YTD Return: – 8.05 %
Sharpe Income YTD Yield: +1.45 %
Sharpe Income Maximum Draw-down: – 13.05 %
IEF Benchmark Return: +2.7 %
S&P 500 Index Return: – 2.26 %
Berkshire Hathaway Return (BRK.A): – 13.38 %
For the purposes of this particular project, we were paid a few dividends as noted in the PDF. This week I once again moved 92% of this weeks capital contribution towards the category reserved for purchasing capital gains assets. The remaining 8% of the capital contribution was placed towards the cash we have reserved to in the form of ‘dry powder’. Simply put, cash we hold that we can place anywhere, at any time for the purposes of the project. At the same time, with the extra cash from dividends, I have increased the amount of cash reserved to make a purchase of Wells Fargo (WFC).
Now that we are done with the maintenance of the account for this week …
Are we looking to make any adjustments to this project at the moment? Are we ‘concerned’ due to the possibility that the Federal Reserve may raise the effective bank rate? What about High-Yield? We discuss that in the following video entry …
The link to the Google Drive Spreadsheet that you can view, that we will edit, build upon and refer to over time can be found at this link.
We continue the Sharpe Income project with this next entry.