SHARPE INCOME … Let’s Do That 500 More Times

Posted on Apr 27 2015 - 11:39am by Sharpe Trade

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.


The Sharpe Income project just crossed the $1,000 mark for the first time.

Now, let’s just do that 500 more times, and we’ll be staring at a nice little income account that we can begin to grow.

As we mentioned on Saturday, no … you cannot ‘sit and calculate’ how long that will take.

Because the future is non-linear.

Because we cannot determine, or know ahead of time what each individual stocks dividend growth rates will be (although we have tried to set ourselves into a position where we could enjoy a higher than usual dividend growth rate).

Because we cannot determine, or know ahead of time how many stock splits we will enjoy.

Because we cannot know at the present time what sort of performance we will experience from the capital gains strategy that we will employ.

We cannot determine, or know ahead of time how many contributions we will enjoy from our  short-term trading account.

The list goes on, and on, and on with factors that we simply cannot account for at the present time.

What I do believe, is that this process of growth begins to happen much more quickly than most people realize.  As stated in the ‘Week in Review’ podcast, this account will enjoy a “capital gains” strategy in the future.  This capital gains strategy can produce anywhere from 2%, to 9% gains in a year, and even more.  We can then take a fraction of those profits, and add it to the usual capital additions the project experiences.  This in essence, will place a ‘compounding’ effect, ontop of our ‘compounding’ effect.

There are other little tricks that I am eager to show you for this account.

But that will come in time.

Because we are patient.  And we are persistent.

Actionable Views for ‘Sharpe Income’ This Week

Did you like the entry we published last week with my very brief thoughts on Union Pacific’s (UNP)  most recent quarter?  If so, I’m thinking of making that a regular feature for stocks we have mentioned in the Sharpe Income  project.  So do not be surprised if you see a similar entry for Microsoft (MSFT) pop up here soon.  

You’ll notice on the attached PDF below, that I have decided to concentrate on two areas for the cash we contribute each and every week …

Capital Gains Strategy:  The capital required for our capital gains strategy needs built up substantially.  So I will be focusing on diverting some (or possibly all) of our capital contribution to this category in coming weeks.

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.

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 22 can be found here …

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