Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into DCI for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $33,910, a return of 30%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $31,154 and grew to $43,443 — a 39% return.

Question 2

What is the best DCA strategy for DCI?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when DCI is overextended — outperformed standard weekly DCA by 10% over 5 years. The enhanced strategy achieved a 39% return vs 30% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into DCI for 3 years (157 purchases, $15,700 total) would have grown to $18,083 — a 15% return. Enhanced DCA over the same period returned 17%.

Question 4

Is DCA into DCI worth it?

Accepted Answer

Based on a 5-year backtest, DCA into DCI returned 30% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 39% over the same period — a 10% gain in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into DCI for 5 years would result in approximately 390 shares with a standard DCA approach (avg entry $67). Enhanced DCA targeting dips results in 500 shares at an average entry of $62.

Question 6

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

Accepted Answer

Enhanced DCA into DCI returned 39% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. DCI's performance reflects its volatility as a industrials asset. Enhanced DCA outperformed standard DCA by 10%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into DCI?

Accepted Answer

Past backtest performance does not guarantee future results. DCI 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 Donaldson Company, Inc. dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into DCI 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 10% higher returns than standard DCA while deploying more total capital into DCI.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	-3%	0%	+4%
3-Year	15%	17%	+2%
5-Year	30%	39%	+10%

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Buying the dips for Donaldson Company, Inc.