06-23-2015, 02:06 PM
OK, I tweaked my hedge, which allowed me to increase leverage, which increased the dividends received. I made another tweak to decrease my turnover, and now annual turnover averages 0.45%. Now I have the following historical dividend payments, net of margin interest paid, on a one-time $10,000 investment:
Year Amount
1999 $488
2000 $624
2001 $1,713
2002 $2,271
2003 $2,750
2004 $3,831
2005 $8,432
2006 $12,962
2007 $26,664
2008 $24,521
2009 $27,514
2010 $49,609
2011 $64,455
2012 $67,319
2013 $71,087
2014 $93,426
2015 Estimate $122,420
The payback period is 6 years. More than the original principle is being paid in annual dividends after 8 years. Telling doubters where to stick it after 12 years.
I like this time horizon because it includes 1) internet bubble popping, 2) 9/11, 3) housing bubble popping, and 4) The Great Recession. Below are some risk measures since inception in 1999:
Model
Inception Date 01/02/99
Total Return (%) 29,393.21
Annualized Return (%) 41.27
Max Drawdown (%) -38.37
Standard Deviation (%) 27.71
Sharpe Ratio 1.35
Sortino Ratio 1.90
Correlation with Benchmark 0.33
R-Squared 0.11
Beta 0.45
Alpha (%) (annualized) 36.30
If compounding interest is the 8th wonder of the world, dgi is the 9th wonder of the world.
Year Amount
1999 $488
2000 $624
2001 $1,713
2002 $2,271
2003 $2,750
2004 $3,831
2005 $8,432
2006 $12,962
2007 $26,664
2008 $24,521
2009 $27,514
2010 $49,609
2011 $64,455
2012 $67,319
2013 $71,087
2014 $93,426
2015 Estimate $122,420
The payback period is 6 years. More than the original principle is being paid in annual dividends after 8 years. Telling doubters where to stick it after 12 years.
I like this time horizon because it includes 1) internet bubble popping, 2) 9/11, 3) housing bubble popping, and 4) The Great Recession. Below are some risk measures since inception in 1999:
Model
Inception Date 01/02/99
Total Return (%) 29,393.21
Annualized Return (%) 41.27
Max Drawdown (%) -38.37
Standard Deviation (%) 27.71
Sharpe Ratio 1.35
Sortino Ratio 1.90
Correlation with Benchmark 0.33
R-Squared 0.11
Beta 0.45
Alpha (%) (annualized) 36.30
If compounding interest is the 8th wonder of the world, dgi is the 9th wonder of the world.