DCA Challenge
This account is a intended to solely use a modified dollar cost average technique to beat the S&P500. The goal of the account is to achieve 18% average yearly compounded returns over decades. Compounding at 18% achieves a double every 4 years. 20y is 5 doubles, which is 32x. So every $250 weekly investment will turn into $8,000. That's the power of compounding at work!
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The account was started in April of 2024. The time weighted compounded growth rate is 63% as of 02/27/2025.
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The earning power of this portfolio is $410 (sum of eps x # of shares). If any metric shall be tracked, it is this. The stock will follow the earnings and the goal is to buy businesses that will have the most earning power in 5y for the price available today.
The account holdings will be updated weekly.
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This is not financial advice. I'm just a random guy on the web and not a CPA.
Mission
Thy mission of the dca account is to deposit $250 weekly into the account and buy undervalued, strong-growing businesses each and every week. There should be a minimum amount of selling in this account. Trading is another game. Cigar butt investing is another game. Options are another game. This account is intended for buy and hold, although sales can be made when stocks no longer fit the investment goals.
Vision
Where do I see this account going? I would be dissatisfied if the DCA account didn't beat 18% per annum and would be ecstatic if it reaches 30% per annum. Ideally, it will beat the S&P by ~10% per annum over the long haul. Anything more than that is unrealistic for the modified DCA approach to stock investing.
