SHARPE INCOME … Holding a Steady Course

Posted on Aug 31 2015 - 10:45am 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.


Of the capital contributed this week, we moved 92% of this contribution towards the category reserved for purchasing our capital gains assets.  The remaining 8% of the capital contribution was placed towards cash that we simply have ‘on-hand’ in the form of ‘dry powder’.  We have been patiently building capital, and of the cash we have on hand for this project, we have organized how we will spend it (this is also in the PDF, attached below) …

Sharpe Income Benjamin Graham Valuation Investing Cash Allotments

Last week, we took some of our cash, and deployed it into purchasing QQQ for the basket of assets we use for Capital Gains.  After this weeks contribution, that leaves us with only $19.27 in that category.  

So we continue forward with the plan that we mentioned a few weeks ago.  Namely … build up cash for capital gains purchases.  Allow a small portion of each weekly deposit (8% of each weekly deposit) to build up in the background to allow for new Income asset purchases.  As well, we have the cash ready to go to purchase Union Pacific (UNP).  Which … incidentally, I don’t feel is ready for a purchase.  If Union Pacific can climb up to $90.46, I might be interested.

Oh, and by the way?  By simply being patient with our purchase into Union Pacific (UNP)?  We have saved ourself at least 10 points on that particular purchase.

Remember … we buy Medtronic (MDT), International Business Machines (IBM), American Express (AXP), Colgate (CL), Union Pacific (UNP), Microsoft (MSFT) and Wells Fargo (WFC) for dividend income.  At the moment, our income this year stands at 1.10 %, which beats our benchmark when it comes to income.

But now we have to concentrate on our capital gains.  We do this buy buying a basket of assets for capital gains, to help out this income project.  Namely, Emerging Markets ETF (PCY), The Nasdaq 100 ETF (QQQ), 20 Year Treasury Bond ETF (TLT), a High-Yield ETF (JNK) and the S&P 500 Index ETF (IVV).

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 40 can be found here (numbers computed off of Friday’s close) …

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