Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into TSM for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $87,832, a return of 237%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $29,856 and grew to $144,619 — a 384% return.

Question 2

What is the best DCA strategy for TSM?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when TSM is overextended — outperformed standard weekly DCA by 148% over 5 years. The enhanced strategy achieved a 384% return vs 237% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into TSM for 3 years (157 purchases, $15,700 total) would have grown to $36,608 — a 133% return. Enhanced DCA over the same period returned 189%.

Question 4

Is DCA into TSM worth it?

Accepted Answer

Based on a 5-year backtest, DCA into TSM returned 237% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 384% over the same period — a 148% gain in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into TSM for 5 years would result in approximately 194 shares with a standard DCA approach (avg entry $135). Enhanced DCA targeting dips results in 319 shares at an average entry of $94.

Question 6

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

Accepted Answer

Enhanced DCA into TSM returned 384% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. TSM's performance reflects its volatility as a technology asset. Enhanced DCA outperformed standard DCA by 148%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into TSM?

Accepted Answer

Past backtest performance does not guarantee future results. TSM is a technology 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 Taiwan Semiconductor Manufacturing Company Limited dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into TSM 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 148% higher returns than standard DCA while deploying more total capital into TSM.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	25%	22%	-3%
3-Year	133%	189%	+56%
5-Year	237%	384%	+148%

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Dollar cost averaging into TSM — backtest results

Buying the dips for Taiwan Semiconductor Manufacturing Company Limited