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Author: lostcowboy1 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 727  
Subject: Re: adding cash to AIM Date: 1/31/2002 11:19 PM
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Yes he did,on page 26 chapter 5, As far as I know mr Lichello never changed any of his editions, just added new chapters to the end. I first read the first edition in 1979,in that edition there was no Twinvest. Twinvest came with the 2ed edition. In 1980 I found a copy of Super Power Investing. Twinvest was made to go with AIM, by the time you get to $10,000 with it you should be able to go right into AIM at close to a 50%/50% ratio. However I beleive Synchrovest will get you there faster.
I look on Twinvest as a one speed manual transmission. You have to manualy pick your Twinvest code, if later in time you decide that Twinvest code was wrong you have to manualy pick a new one to use. Also when Twinvest has a 100% profit Mr Lichello recommends selling all stock and starting over, But Twinvest does not know what to do with all that cash that you just got.
I look on Synchrovest as a Two speed automatic transmission. With Synchrovest the (multiplyer) is created new each time, it is based on Stock price and average cost, both change over time. Also Synchrovest has that 2ed gear which he will try to use( if the multipler is over one, subtract one and multiply the fraction with ready cash). The example I gave you only let Synchrovest slip in to 2ed gear once. let me give you a secound example, two investers one using Twinvest and one using Synchrovest, they have both been investing at the rate of $100 for five year into the same fund which has stayed at the same price $10.The (Twinvest code is 750) and the (Synchrovest multipler is at 1.0). they both have $6000 invested, $4500 in stock at$10 a share(450 shares)and $1500 in cash.Now lets see what happens when the price drops to $7. With Twinvest 750 divided by $7 equals $107 to be invested.
But with Synchrovest, we have a average cost of $10 divided by $7 to get a multiplyer of 1.42, 1.42 times $75 equals $107, but Snchrovest is not finished yet it now goes in to secound gear(1.42 minuss one times ready cash) .42 times $1500 equals $630. The final amount Synchrovest wants to invest is $737.
What if the stock had dropped to $5 instead of $7, well Synchrovest by the book would have you invest all your ready cash in to the stock, If you are like me that may trouble you just a little bit, who says a stock is only going to drop 50%. I want to keep some back just in case. So I added a rule to standard Synchrovest 2ed gear. It now reads if the multipler is grater than 1.0 you will subtract one from it, and multiply the fraction with ready cash, but if the fraction is greater than My limit then you will use my limit. the limit I recommend is .50.I also decided that a selling point of 100% was to high, I thank 50% will do much better. In my spreadsheet you can adjust all these things to your own liking.
Both Twinvest and Synchrovest are good programs for systematic investing. I just personaly like Snchrovest better.
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