Hi Mark,
Yet another answer to the same question:
I will refer to page 191 of the book.
"Q. Could you suggest a good way to convert present holdings into an AIM program?
A. No problem. Decide how large and AIM program you want and set up your record sheet to reflect it. If you want to start a $10,000 AIM program, say, you'll naturally need $5,00 in stock and $5,000 in cash. Where you get the stock and cash is no concern of AIM's. You might have $10,000 worth of stcks right now, and no cash. You'd then have to sell $5,000 worth of stock in order to raise you $5,000 CASH reserve. If you wanted to start a $20,000 AIM program, you could use your present stock for your $10,000 STOCK VALUE section, but then you'd have to come up with $10,000 in cash."
In my opinion the key phrase above is "Where you get the stock and cash is no concern of AIM's." the whole point of AIM is to remove emotion from the investing process. AIM is not concerned with happened to a stock before you started using it. The investor might be, but that is totally irrelevant to AIM.
Changing AIM before you even start is sort of like saying let's play a game of baseball, and just for kicks we'll use a pingpong ball instead. It could conceivably be a good game, but it wouldn't be baseball.
Bernie |
