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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: OldAIMGuy who wrote (7020)3/9/1999 4:43:00 PM
From: The Philosopher  Read Replies (1) of 18928
 
The VLSI (?) chart that you have on your (?) web site (I trust you know what I'm referring to!) seems to show a LOT more than six transactions per year. Am I missing something?

To realistically compare the AIM method with the buy-and-hold philosophy, wouldn't you want to look at the NET in hand after, say, 5 years? I think a true look at AIM should assume paying the capital gains out of the cash account, leaving less money to put back into the stock. In the buy-and-hold, you would take the capital gains out at the end, which means you would have more money working for you over the years, particularly in the later years.

I don't say that AIM wouldn't still "win" -- I'm not far enough along to do that analysis yet -- but I don't think it's a "fair" comparison to look at two methods without taking taxes into account.

Mid-reply I went back to your message and noticed the URL and went there; it looks as though the principle I'm discussing (hardly a new thought!) is discussed there, but I didn't see any comparison of A.I.M.ing a security vs. buying and holding it. If I get the time (and energy) I think I'll look at one or two stocks I bought 5 years ago and see what I would have made after-tax if I had done AIM on them and what I would make net if I sold them now. Or has anybody done that work for me already? (Hope hope!!)

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