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.
Sharpe Income Balance: $1,806.20
Sharpe Income YTD Return: – 6.84 %
Sharpe Income YTD Yield: +0.00 %
Sharpe Income YTD Maximum Draw-down: – 6.84 %
iShares Barclay’s IEF Return: +4.70 %
S&P 500 Index YTD Return: – 8.77 %
At this point, we’re going to go ahead and figure that we are able to buy Wells Fargo (WFC) for this Income Project at any time. We’re not saying that we are going to buy Wells Fargo (WFC). We may not. But as stated, if the opportunity presents itself, then we might go ahead and spend ~$300.00 out of this project, purchasing Wells Fargo (WFC). Remember that here in the beginning, we are keeping each Income Asset purchase to about that size …
Wait a minute Dan … you said spend ~$300.00 out of this project to buy Wells Fargo (WFC). But your PDF shows that you only have $245.53 to spend on Wells Fargo (WFC) …
Yes, yes, we know. If the opportunity arises … we’re willing to go ahead and go into the hole a little bit, in that particular category. We would then spend the next few weeks of capital contributions, plugging that hole.
But who knows? Wells Fargo (WFC) may drop like a stone after the first hour of trading on Tuesday, and we won’t purchase any of it. We’re simply saying that we are close enough to that range, that we are willing to push it a bit into ‘overdrive’ to make the purchase should the opporunity present itself.
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.