The original Sharpe Income post 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.
From time to time we all read or see a news piece, discussing stagnant wages in the United States. That topic has gained particular interest in the last few years.
As an investor, I am not impervious to the risk of falling income. As an investor, I “shoulder” risk, as it were. My income is not ‘guaranteed’ to raise, simply because I am an investor. As if … ‘investor = rich guys’ through the simple choice I have made to be an investor. There is risk. Be in balance sheet risk of the companies who pay me an income. Or, management may make all of the right decisions, and due to the non-linear nature of future events, those correct decisions simply do not work out as intended. There is geo-political risk. All forms and manner of risk.
Suffice to say, I am not impervious to the risk of falling income.
I simply make choices that I believe will put me in a position where it would not be unheard of, to receive a raise in my income.
Which has already begun to happen with this project.
International Business Machines (IBM) has increased their dividend by 18%. As I have stated in the past, I believed that this was likely, despite IBM’s cash flow, due to the dividend payout ratio.
So while some may complain of stagnant wages? Our project … as it were … has already received a ‘raise’ to the tune of 18%, and we’re not even 30 weeks into it yet.
Actionable Views for ‘Sharpe Income’ This Week
You’ll notice on the attached PDF, I have included a few charts this week. The project is so new, that I really just had to wait until to have enough data to collect. These charts will continue to appear on subsequent PDF’s, and can be found on the Sharpe Income spreadsheet (link is below).
Capital Gains Strategy: As you will see if you compare this weeks PDF (below), to last weeks PDF … we have used a bit more of the capital contribution this week to beef up this section of our dedicated capital to this category.
Remaining Cash after Reservations: This is the section of our cash that we will use for the usual purchases. As you know, at least at this stage in the game … our approximate size of a purchase for the project runs about $300.00. So we have to build this section up to at least that level, in case an opportunity presents itself. This week, the majority of our deposit was diverted to this category.
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.