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.
We began this project with only $500. All in an effort to help out the small retail investor who doesn’t have a lot of money, 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 these numbers are computed off of Friday’s close …
Total Sharpe Income Balance: $3,601.10
Total Sharpe Income YTD Return: + 3.29 %
Sharpe Income YTD Paid Yield on Cost: + 0.23 %
Total Sharpe Income YTD Maximum Draw-down: – 0.63 %
iShares Barclay’s IEF Return: + 0.10 %
S&P 500 Index YTD Return: + 6.44 %
S&P 500 Index YTD Maximum Draw-down: – 0.70 %
First of all, we received and have recorded the Wells Fargo (WFC) dividend on the spreadsheet (link below).
We have placed this weeks ‘capital deposit’ in the category of ‘Capital Gains’. Basically … shorter-term trading. Which follows a strict process explained in the ‘Short-Term Trading Course‘. Thus, the cash of the project is reserved thusly among the different segments …
Total Cash: $1,874.03
Income Assets Cash: $58.63
$58.63 Reserved for future MDT purchase
Remaining Cash “Dry Powder” after Reservations for Income Purchases: $0.00
Capital Gains Cash: $1,765.40
Reserve Cash: $50.00
Cash for Income Assets: $0.00
Cash for Capital Gains Allocation: $0.00
Cash for Tier Capital: $50.00
As we had mentioned last week, the ‘Capital Gains’ or ‘Trading Segment’ of the account has gone to cash. And for the time being, it remains in cash. As you have already seen, we contributed this weeks contribution to that segment as well.
That’s really what I want to concentrate on for the time being. Building up the cash in that trading segment.
I’m evaluating the markets, and deciding when I will put money back to work in the trading segment. Until the process calls for it … I’m simply going to be sticking cash there, and attempting to raise the percentage of the project that is represented by said trading segment. For now, it’s about evenly split between the size of the “Income Asset” segment, and the size of the ‘Capital Gains’ or ‘Trading Segment’. We need the ‘Trading Segment’ or ‘Capital Gains’ segment to represent a higher percentage.
Do not forget that you can discover how we find such income stocks that are held for years at a time, in Sharpe Trade’s Valuation Investing Course. We discuss this particular project, more in-depth via Sharpe Trade’s Short-Term Trading Course.
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.