SHARPE INCOME … Still “Framing the Walls”

Posted on Feb 6 2017 - 2:25pm 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 only $500. All in an effort to help out the small retail investor who doesn’t have a lot of money, 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. Remember that the numbers are computed off of Friday’s close …

Total Sharpe Income Balance: $3,458.18
Total Sharpe Income YTD Return: + 2.03 %
Sharpe Income YTD Paid Yield on Cost: + 0.00 %
Total Sharpe Income YTD Maximum Draw-down: – 0.63 %
iShares Barclay’s IEF Return: + 0.10 %
S&P 500 Index YTD Return: + 2.62 %
S&P 500 Index YTD Maximum Draw-down: – 0.70 %

We have placed this weeks ‘capital deposit’ in the category reserved as “dry powder”. Cash that we simply have ‘on hand’ and can move about as we wish. Of that cash, 85% of the capital deposit was placed as reserved for a future deposit towards the ‘capital gains’ strategy. 15% of the capital deposit is placed towards reservations for the purchase of more income assets.  Thus, the cash is reserved thusly …

Total Cash: $129.99
Income Assets Cash: $39.82

$39.82 Reserved for future MDT purchase
Remaining Cash “Dry Powder” after Reservations for Income Purchases: $0.00
Capital Gains Cash:  $15.17
Reserve Cash: $75.00
Cash for Income Assets: $7.50
Cash for Capital Gains Allocation: $42.50
Cash for Tier Capital: $25.00

The PCY dividend posted at the end of last month, since the last update.  That dividend has been recorded, and recorded into the appropriate spreadsheet. 

It should be kept in mind, that since we decided to start this free project with such a tiny amount, we are still in the process of growing the account.  Which … as you can see … is beginning to happen nicely …

Sharpe Income Total Project 02-06-17

In the past, we have metaphorically equated the growth of the project, to constructing a home.  Because the point here, is to grow the account into something that can eventually pay a little side income. At first, we had to lay the foundation.  Later, we had to complete the ‘sill plate’.  Still later, we began to think about the ‘framing’.  

So where would I say we are at this point?

Still working on the framing.  If anything, to continue the metaphor … we have one … maybe two “walls” “framed” and “up”.

But we are enjoying great performance metrics along the way, and the processes are doing well …

Sharpe Income Income Assets 02-06-17

As we have said previously, we expect this project, as it ages … to continue to produce exceedingly competitive risk-adjusted performance metrics.  And so … we continue moving forward, as we have been …

Do not forget, that you can discover how we find such income stocks that are held for years at a time, in Sharpe Trade’s Valuation Investing Course.  We discuss this particular project, more in-depth via Sharpe Trade’s Short-Term Trading Course.

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.

4 Comments so far. Feel free to join this conversation.

  1. mappy February 7, 2017 at 10:33 am - Reply
  2. mappy February 7, 2017 at 10:33 am - Reply

    I love gooooold!

  3. mappy February 7, 2017 at 2:57 pm - Reply


    This is the best trading day ever!!!!!

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