Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into SBH for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $32,920, a return of 26%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $49,336 and grew to $68,054 — a 38% return.

Question 2

What is the best DCA strategy for SBH?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when SBH is overextended — outperformed standard weekly DCA by 12% over 5 years. The enhanced strategy achieved a 38% return vs 26% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into SBH for 3 years (157 purchases, $15,700 total) would have grown to $20,952 — a 33% return. Enhanced DCA over the same period returned 53%.

Question 4

Is DCA into SBH worth it?

Accepted Answer

Based on a 5-year backtest, DCA into SBH returned 26% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 38% over the same period — a 12% gain in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into SBH for 5 years would result in approximately 2070 shares with a standard DCA approach (avg entry $13). Enhanced DCA targeting dips results in 4280 shares at an average entry of $12.

Question 6

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

Accepted Answer

Enhanced DCA into SBH returned 38% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. SBH's performance reflects its volatility as a consumer discretionary 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 SBH?

Accepted Answer

Past backtest performance does not guarantee future results. SBH is a consumer discretionary 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 Sally Beauty Holdings, Inc. dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into SBH 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 SBH.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	7%	18%	+11%
3-Year	33%	53%	+20%
5-Year	26%	38%	+12%

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Dollar cost averaging into SBH — backtest results

Buying the dips for Sally Beauty Holdings, Inc.