SHARPE INCOME … Readjusting Capital Allocations

Posted on Feb 1 2016 - 10:50am by Dan

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:  $1,762.47
Sharpe Income YTD Return: – 6.06 %
Sharpe Income YTD Yield:  +0.00 %
Sharpe Income YTD Maximum Draw-down: – 6.77 %
iShares Barclay’s IEF Return: +3.30 %
S&P 500 Index YTD Return: – 5.07 %

Once again, this week we are are placing the entire deposit towards the cash we have reserved to buy a bit of Wells Fargo (WFC).  As we said some time ago, we wanted to work a bit more on our income assets in 2016.   As yet, the project has not purchased this stock.  

I don’t think Wells Fargo (WFC) is presenting itself as a ‘buy’ quite yet.  But I want to be ready when that time comes.

Wells Fargo (WFC)
1 Hour Chart

wells-fargo-chart-sharpe-trade-01-31-16

And to that end, you will notice in the attached PDF that we have changed our capital allocations this week ...

sharpe-income-project-allocations-02-01-16

Previously there was a bit of capital spread about in each category for purchasing income assets.  A bit for Colgate (CL).  A small amount for Wells Fargo (WFC), etc.  We’ve changed this.  We are now moving all of this to reserve cash for a possible Wells Fargo (WFC) purchase.  Remember, that we like to keep these first purchases for the income assets to as close to $300.00 as possible, as we are just beginning this project.

On that note, please remember that performance metrics do not begin to ‘tell the story’ until after about 3 years.  So while we have laid the ‘foundation’ as it were for this project,  well, please remember that we are still within the beginning phase of this project.

The basket of assets we use for capital gains within this project is performing well …

sharpe-income-dividend-project-02-01-16-capital-gains-assets

So we will continue to monitor it’s progress as the weeks pass ….

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

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