Maneos Compounding Machine | The Maneos Compounding Machine

09 Jul The Maneos Compounding Machine – June 2019 Update –

Posted at 22:38h in Investment, Investment by peterm 0 Comments

The big money is not in the buying and selling, but in the waiting.” – Charlie Munger.

“Don’t do something, just stand there.” – Jack Bogle.

“There will be good years and there will be bad years, but the compounding will continue on unabated.” – Pietros Maneos.

June was a tremendous month in the market, and in fact, one of the better Junes on record. The capital of ManeosCompoundingMachine.com appreciated $38,083.72 over the past 30 days. This is calculated by taking the Present Value – $554,811.39 – and subtracting the money contributed in this month – $9800, which equals $545,011.39 and then subtracting the value at the end of May $506,927.67 from that amount. $545,081.39 – 506,927.67 = $38,083.72

If one were to calculate raw capital appreciation, not factoring in this month’s contributions, it would be $554,811.39 minus $506,927.67, which equals $47,883.72.

The mathematics balances to a penny, as $47,883.72 minus $38,083.72 equals $9800, the exact amount contributed to The Compounding Machine this month.

The gain of $47,883 or $38,083.72 (depending on your preference) is not due to some ‘hot tip’ or some ‘quick trade’ but rather through sitting on my ass, through sheer sloth. Jack Bogle famously said: ‘Don’t do something, just stand there,’ while Charlie Munger noted: ‘Sit on your ass. You’re paying less to brokers, you’re listening to less nonsense, and if it works, the tax system gives you an extra one, two or three percentage points per annum.’

The monthly income this month was $1244.41, which is on par with last month’s $1257.76. There were 20 trading days in June, so this averages out to $62.22 per trading day in dividends/distributions/return-of-capital/etc. I dream of the day when this is $622.20, $6,222.00 or $62,220.00 per trading day. Remember, I am trying to create a machine that takes money in nearly every day, and ‘spits out’ money every day, a machine that marches on, proudly and indomitably, whether markets fall to 18,000 or rise to 30,000. The key element to enhance compound interest is that this $1244.41 goes back into the Machine, and is not used for personal consumption.

As expected, my two favorite funds: The Balanced Alpha 3x Leverage and the All Weather Alpha 3x Leverage are both up over 30%, hanging about in the Carl Icahn-James Simons range of returns. I will be fascinated to stress-test these funds when the market invariably devolves into a Bear Market, whether that be this year, next year or the year after.

On another note, my website: ManeosCompoundingMachine.com is in the final stages, and should be ‘live’ within a week or so.