SHARPE INCOME … Reviewing Our Plan

Posted on Oct 26 2015 - 9:17am 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.  Numbers from our PDF that is attached below … 

Sharpe Income Balance:  $1,608.26
Sharpe Income YTD Return: -2.53%
Sharpe Income YTD Yield:  +1.05%
Sharpe Income Maximum Draw-down: -13.05%
S&P 500 Index Return: +0.79%
Berkshire Hathaway Return (BRK.A): -8.59%
IEF Benchmark Return: +2.90%

For the purposes of this particular project, this week I once again moved 92% of this weeks capital contribution towards the category reserved for purchasing capital gains assets.  The remaining 8% of the capital contribution was placed towards the cash we have reserved to purchase Wells Fargo (WFC).

Sharpe Income Nominal Balance - 10-26-2015

Back on August 10, 2015, we had stated that we were embarking upon a plan to …

 ” … work at completing the ‘foundation’ of the project.  We will continue to save capital to purchase capital gains instruments.  Save some cash on the side for income purchases.  Wait for Union Pacific (UNP) to stop falling so we can purchase that stock for income.

I’m going to go ahead and say … “Mission Accomplished”.

We deployed the cash, so now we have begun a small position in Union Pacific (UNP) which is currently up +4.55%.

As you can see from our capital allocations, we now have the capital to purchase more capital gains assets …

Sharpe Income Capital Allocations - 10-26-2015

Funny thing though?  I don’t see an opportunity to purchase any of the ETF’s that we use for capital gains (remember that the ETF’s we use are QQQ, PCY, TLT, JNK, and IVV and I may add SHY to that mix).  Which means we will wait until we see an opportunity to purchase something.

All the while, we have our capital contributions coming in, which means as we wait for an opportunity, we will have more cash to deploy, when the time is right.

Stay tuned, as a ‘shopping trip’ may be right around the corner.

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

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