Hi Tom,
Ran across a book titled "Value Averaging" by Michael Edleson. It was published in 1993 based on an article the author wrote for the August 1988 AAII Journal. Have you ever heard of or read this book?
Value Averaging first spends some time on traditional dollar cost averaging and a few variations of that method. The rest of the book, as you would expect, is geared toward an explanation, with examples, using lots of graphs, formulas and tables, of Value Averaging (VA). A chapter summary of the author's VA method states that it is more complicated than dollar cost averaging, but keeps pace with long term market growth through the establishment and maintenance of what the author calls Value Paths. There are some differences between Value Averaging and AIM, but a growth adjusted Value Path sounds and acts like what we know as portfolio control. Doesn't seem to be any equivalent to SAFE controls, but the basic premise of the two methods is certainly similar although differently stated.
The VA book is now out of print according to Amazon.com. It could be available at your local library or by purchase. I don't think it's worth buying unless you can get a real cheap copy (say $3-5) in a second-hand book store. It was of interest to me only as a historical footnote to Mr. Lichello's book and, perhaps, for its discussion of conventional dollar cost averaging. I don't think that VA is as easy to apply as AIM, but that's just my AIM-biased opinion.
Saul... (mile.high.foothills.com) |
