Posted on Nov 2 2015 - 11:58am by Sharpe Trade

The original Sharpe Income post that explains this project can be found here.

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 $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:  $1,597.05
Sharpe Income YTD Return: -4.65%
Sharpe Income YTD Yield:  +1.05%
Sharpe Income Maximum Draw-down: -13.05%
S&P 500 Index Return: +0.99%
Berkshire Hathaway Return (BRK.A): -9.47%
IEF Benchmark Return: +2.40%

For the purposes of this particular project, 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 purchase Wells Fargo (WFC).


Remember, that there are basically ‘two baskets’ within this ‘Sharpe Income‘ project.  There is the ‘basket’ of Income assets.  There is also the ‘basket’ of Capital Gains assets …

Sharpe Income Project Picture beginning Strategy

The purpose of the project, is to grow an account so as to eventually receive a passive income.  The ‘capital gains’ basket merely supports that primary objective.  

As you can see from our capital allocations, we now have the capital to purchase more capital gains assets …


We obviously have no capital in the project to purchase any Income stocks.  In a few months time, I plan on changing the focus of the project, so that we will be able to ‘beef’ up the account for such purchases.

On the other hand, we do have the capital ready to purchase assets for the ‘Capital Gains’ basket (remember that the ETF’s we use are QQQ, PCY, TLT, JNK, and IVV and I may add SHY to that mix).  But I’m going to wait just a bit.

Any purchase of assets at this point, will merely deplete the cash we have saved.

I want more …


By building more capital in the project, when we make a purchase in the near future, we’ll still have flexibility after we make such a purchase.

So this week, I’m just saving that cash and looking forward to next Monday …

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.

The Sharpe Income PDF breakdown for Week 49 can be found here (numbers computed off of Friday’s close) …

2 Comments so far. Feel free to join this conversation.

  1. anon November 2, 2015 at 12:41 pm - Reply


    The Total Cash section above doesn’t match other areas of the PDF

    – Wells Fargo section and the Colgate section in the PDF say $1.00 and $48 something respectively.

    • Dan November 2, 2015 at 1:53 pm - Reply

      Thanks for the heads up. I went ahead and fixed it … I think. 🙂


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