SHARPE INCOME … Your Balance Sheet

Posted on Jul 13 2015 - 7:17am 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.


There is much yet to demonstrate with this free ‘Sharpe Income’ project.  However, by this point, the ‘model’ is somewhat simple to understand.  It is the same model that hedge funds, firms, and companies around the world follow.

Accumulate capital.

Find financially stable instruments that have a dividend yield.

Patiently wait for opportune times to invest that capital in those instruments.

And thus, grow your income.

Notice that we are beginning to build a series here at Sharpe Trade regarding ‘stock fundamental metrics’. Within that series, we have begun to discuss the three areas a company can be analyzed.   The income statement, the balance sheet, and the cash flow statement.

Just something personal about me, and the way I run my finances?

I look at my own household’s finances through the same lens.

Income statement.  Balance Sheet.  Cash Flow.

And my ‘Fixed Income’ provides assets that produce income, for my household’s income statement.  The same can be true for you.  You can have your own family ‘income statement’ that is tracked over time.  The stocks you accumulate?  Not only do they provide income, that you can add to your household’s ‘income statement’.  Those stocks are also assets that you can add to your families ‘balance sheet’.

This free project not only demonstrates how to ‘grow an income account’ for free.  It adds to your families personal wealth  …

Sharpe Income Balance Sheet

This week for the purposes of this particular project, I again moved 92% of the capital contribution towards the category reserved for our capital gains assets.  The remaining 8% of the capital contribution was placed towards cash that we simply have ‘on-hand’ in the form of ‘dry powder’.  Our focus at this point, is on saving our capital contributions for the capital gains strategy.  Whenever it is that Union Pacific (UNP) forms a bottom, we can look to deploy the cash we have reserved for a standard purchase size ( c. $300.00 ).  We’re not there yet.

JNK has paid us a dividend and has been noted in the spreadsheet and attached PDF.  American Express (AXP) will pay us a dividend on August 10th, and IBM will probably not pay us until the beginning of September.  

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 33 can be found here …

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