Hi Joe, I agree that a deep study of FA is the basis of success. That applies to AIM as well as most other methods. If it weren't for the free time that AIM's risk management performs, I'd not be able to spend as much on Fundamental Analysis.
I've been an AIMer for about 10 years. You might want to take a quick look at it again now that you are more seasoned. We've developed many "adjustments" to the basic algorithm that make AIM much more "real world" than Mr. L's original. For instance, Starting Cash Reserve is a matter of opinion, category of stock (fund) and one's present employment status! Instead of a One Size Fits All approach, our various members of the user's group customize the Cash Reserve to our own way of life and investing. If you have a portfolio loaded with income producing stocks, chances are you will never need more than 20% cash reserve. So why start with more than that, and why let it ever grow larger than that?
If your taste is more in line with High BETA growth stocks, then you have to know what the maximum "draw down" will be and have reserves equal to that. With the use of computerized spreadsheets and dedicated software like Ben's or the Newport Programs', it's easy to keep up and can be easily customized to your particular taste.
The list of stocks that I've done well with using AIM as my guide is long. Since I'm a long term investor, AIM's quite well suited to my approach of analysis and low key risk management. To paraphrase, "Have you tried an AIM spreadsheet lately?" Pick one of your more volatile issues that has long term growth potential and see what AIM can do over time. Check out my FAQ page at
execpc.com
and see if the ideas that we use as modifications to the basic AIM methods make sense. Also, on associated pages, there's other AIM related info.
Best regards, Tom |
