Is anyone using this method of long-term investing?I have read the book and have been tracking some investments. I'd be interested in anyone's thoughts.Rick
Not familiar with the concept. Can you post links to information sites??Loafer409
For starters, read Robert Lichello's(the guy who came up with the algorithm for AIM) book(and don't judge the book by its cover): How To Make $1,000,000 In The Stock Market Automatically, third revised edition. There are many ways to "tweak" the original algorithm for maximizing profits depending on the particular kind of stocks one buys.There are a few folks who post their AIM trades and some have done extensive backtesing. There is also some slick software out there for tracking investments using AIM. Here are some links:AIM Users Group Home Page: http://www.execpc.com/~oldcat/index.htmAIM Weekly Newsletter (free): http://www.execpc.com/~oldcat/3bbs.htmAIM Stock Example: http://www.execpc.com/~oldcat/bargrph.htmAIM Mutual Fund Example: http://www.execpc.com/~oldcat/chkbr.htmJeff Weber's AIM Stock Picks (subscription): http://www.jjjinvesting.comNEWPORT PROGRAMS software for running a real time AIM account:http://www.execpc.com/~newport/index.htmRick
This is a great way to beat the buy and hold bigtime!Rick
I have been using this method for two mutual funds for a few years and one stock for over one year. The funds I have been only able to sell and the stock I have been only able to buy! It does give you discipline and takes the emotion out of investing. I am waiting to do a round trip with something I own!toofuzzy
Hey TOOFUZZY:Do you use split safe's or do you just use the original 10/10 settings? I have backtested a little and found negative buy and lower sell safe's work better in a bull market. The default(original) settings would work better in a bear market. How about your cash? Do you use 50/50 or 66/34?Rick
Do you use split safe's or do you just use the original 10/10 settings? I have backtested a little and found negative buy and lower sell safe's work better in a bull market. The default(original) settings would work better in a bear market. How about your cash? Do you use 50/50 or 66/34?Hi Rick, I do not know what you mean by 10/10 setting but I actually started out with 100% in one mutual fund.When I got some more money I put it into another fund with a 50/50 split because I thought the market was already verry high(the rest in MM). Those two funds always had me selling when I had to do anything at all(I was almost able to buy last Oct but the market went back up too fast).To get a better return with all the cash I was throwing off I decided to put some of it into a REIT (Meditrust)and then also follow the formular with that.Unfortunatly MT has done nothing but go down. The only effect that your orriginal split ratio has is to limit how much money you may ultimately lose if an investment goes against you.If you invest $10,000 in a stock and have $10,000 in a MM you could lose $20,000. If you have $10,000 in a stock and $6,000 in a MM you can only lose $16,000.It also depends on how volitile your investments are.My funds are not volitile enough on the downside to take advantage of the cash. I would have been much better off being fully invested, at least untill the next time the stock market drops 30-40% but then I am toofuzzy
Hi TOOFUZZY, glad to see a aim board over here on fool.com and free too! the other board is free to read but you have to pay to write in there. Maybe we can get them to come over here. In Rick secound post on here he list most of the web sites concerning aim. one of them is http://www.execpc.com/~oldcat/index.htm Tom Veale has been running a aim investment program for about 11 years and he has a free aim user letter. What rick was talking about ( do you just use the original 10/10 settings) is the safe value. Mr. Lichello set it up as 10% of the stock value. Tom Veale Has come up with the ideal of adjusting the percentage you use. Also he adjust the starting split between cash and stock when you are starting a aim program. concerning (It also depends on how volitile your investments are.My funds are not volitile enough on the downside to take advantage of the cash. I would have been much better off being fully invested, at least untill the next time the stock market drops 30-40%)It sounds like your fund is outrunning your portfolo control, On Tom Veale web site he tells you how to adjust it, he call's it a vealely I believe.
If you are serious about understanding and using AIM, Tom Veale's web site should be your starting point. http://www.execpc.com/~oldcat/index.htmI had been using AIM "by the book" for some time, but found that in this continual bull market I was accumulating much too much cash. Then I found Tom's site, and learned about all of the tweaks he had experimented with, the most important of which are the "split safe" and the "Vealie". You can read about these in Tom's FAQ. Tom also has many real-life histories on the site, so that you can understand how AIM has worked for him. Another very valuable resource is the AIM bulletin board on Silicon Investor; Tom has a link to it on his site. I have been a lurker on that site for more than a year; it has been invaluable in helping my understanding of the AIM methodology, and in helping me to choose appropriate AIM investments.
I started with 100% invested in Fidelity Magellan Fund and it has thrown off so much cash that when it got to 50% I started investing inan individual stock. Unfortunatly as Magellan never quite went down enough for me to buy the stock has only went down and I have run out of the 50% cash that I had allocated to it.So I have managed to have nothing I own go through the buy sell buy cycle. I am still waiting. I do appreciate how this takes the emotion out of investing. I will have to try it with QQQ, AOL, or AMZN to get more volitility though.toofuzzy
Sorry for the delay in thanking you for your suggestion which I am exploring with great pleasure.RegardsIvor Lewis
This is a great way to beat the buy and hold bigtime!Rick ----But is it still relevant, today?BKtalking to an empty board.
Hi BK,there is an active AIM board at http://www.investorshub.com/boards/ or http://www.investorshub.com/boards/read_msg.asp?message_id=4280051you can read and do limited posts for free. There are many long time AIMers on that board.bruce
Thanks, bruce.I can't read the book overnight, so give me a brief on AIM, if you don't mind.BK
AIM in briefpick a quality stock that flucuates in value every year 20 to 30 % is good. buy in, $10000 in shares, with a $5000 cash reserve is a good start, sell some as it moves up, buy some as it moves down. do it again. the formulas are in the book. you can use ETF's to reduce the risk.bruce
Thanks, bruce.Do you have to buy $10K? Will this work on a smaller scale?BK
Do you have to buy $10K? No you can buy less, there are AIM like programs such as Low Down AIM that are designed to use less. A good place to start your research is at this free site http://www.aim-users.com/ there are links to free spread sheets and links to trading histories useing AIMBruce
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