Question 1

How much would I have if I DCA'd $100/week into CODI for 5 years?

Accepted Answer

Dollar cost averaging $100 per week into CODI for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $19,980, a return of -23%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $51,770 and grew to $45,903 — a -11% return.

Question 2

What is the best DCA strategy for CODI?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when CODI is overextended — outperformed standard weekly DCA by 12% over 5 years. The enhanced strategy achieved a -11% return vs -23% for standard DCA.

Question 3

What would $100/week into CODI be worth after 3 years?

Accepted Answer

Investing $100 per week into CODI for 3 years (157 purchases, $15,700 total) would have grown to $14,835 — a -6% return. Enhanced DCA over the same period returned 20%.

Question 4

Is DCA into CODI worth it?

Accepted Answer

Based on a 5-year backtest, DCA into CODI returned -23% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned -11% over the same period — a 12% gain in return, while deploying more capital.

Question 5

How many shares of CODI would I have after DCA for 5 years?

Accepted Answer

Dollar cost averaging $100/week into CODI for 5 years would result in approximately 1841 shares with a standard DCA approach (avg entry $14). Enhanced DCA targeting dips results in 4231 shares at an average entry of $12.

Question 6

How does CODI DCA compare to the S&P 500?

Accepted Answer

Enhanced DCA into CODI returned -11% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. CODI's performance reflects its volatility as a industrials asset. Enhanced DCA outperformed standard DCA by 12%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into CODI?

Accepted Answer

Past backtest performance does not guarantee future results. CODI is a industrials asset whose price can fall as well as rise. While DCA reduces timing risk by spreading purchases over time, losses are still possible if the price declines significantly. Always invest within your risk tolerance and consider your overall portfolio diversification.

Question 8

What is the Compass Diversified dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into CODI at regular intervals. Enhanced DCA improves on this by using RSI (Relative Strength Index) signals to increase buy amounts during market dips (oversold conditions) and reduce or skip purchases when the stock is overextended. Over the 5-year backtest, this timing approach has delivered 12% higher returns than standard DCA while deploying more total capital into CODI.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	36%	87%	+51%
3-Year	-6%	20%	+26%
5-Year	-23%	-11%	+12%

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