Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into TPL for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $41,033, a return of 57%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $41,470 and grew to $72,811 — a 76% return.

Question 2

What is the best DCA strategy for TPL?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when TPL is overextended — outperformed standard weekly DCA by 18% over 5 years. The enhanced strategy achieved a 76% return vs 57% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into TPL for 3 years (157 purchases, $15,700 total) would have grown to $19,275 — a 23% return. Enhanced DCA over the same period returned 33%.

Question 4

Is DCA into TPL worth it?

Accepted Answer

Based on a 5-year backtest, DCA into TPL returned 57% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 76% over the same period — a 18% gain in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into TPL for 5 years would result in approximately 114 shares with a standard DCA approach (avg entry $230). Enhanced DCA targeting dips results in 202 shares at an average entry of $206.

Question 6

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

Accepted Answer

Enhanced DCA into TPL returned 76% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. TPL's performance reflects its volatility as a energy asset. Enhanced DCA outperformed standard DCA by 18%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into TPL?

Accepted Answer

Past backtest performance does not guarantee future results. TPL is a energy 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 Texas Pacific Land Corporation dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into TPL 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 18% higher returns than standard DCA while deploying more total capital into TPL.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	-2%	7%	+9%
3-Year	23%	33%	+11%
5-Year	57%	76%	+18%

TPL DCA Backtest — Dollar Cost Averaging Results

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Dollar cost averaging into TPL — backtest results

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