SHARPE INCOME … A Change in Strategy is Approaching

Posted on Dec 21 2015 - 3:07pm 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.


First, our weekly house-keeping …

We began this project with $500.  All in an effort to help out the small retail investor 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 and published each week.  Remember that the numbers are computed off of Friday’s close … 

Sharpe Income Balance:  $1,692.64
Sharpe Income YTD Return: – 8.51 %
Sharpe Income YTD Yield:  +1.45 %
Sharpe Income Maximum Draw-down: – 13.05 %
IEF Benchmark Return: +2.20 %
S&P 500 Index Return: – 2.59 %
Berkshire Hathaway Return (BRK.A): – 13.83 %

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 in the form of ‘dry powder’.  Simply put, cash we hold that we can place anywhere, at any time for the purposes of the project.

Now that we are done with the maintenance of the account for this week …

As we approach the end of 2015, I am left to reflect on this project.  For the last few months, we have been reserving capital for our ‘capital gains strategy’.  Most of each weeks deposit is reserved for that strategy.

As the look ahead to the end of this year, as well as well as the first few weeks of 2016, I will probably continue to do this.  We still need to really ‘start the engine’, so to speak, of the capital gains strategy.   To get the ‘capital gains’ strategy humming right along.  We’re almost there.

And as we are ‘almost there’, and as I also begin to think about the project farther into 2016, we may look at change our behavior towards those weekly deposits.  

So be aware, that we are approaching a time period wherein the capital deposits each week will  begin to concentrate just a bit more on purchasing more in the way of income assets.

If I had to lay a guess on how soon?  I would say within the next month.  Possibly month and a half.

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

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