Hi Foxy, It took me longer to get to than I thought. However, I ran a 5 year simulation of AIM's management of a $10,000 commitment to America On-Line. The results are stunning. It grew to nearly $450,000 in value with almost half of that value being in CASH!
Now for the bad news: If one had committed the entire $10,000 to the stock back then and just held on tight and never once traded, it would be worth $1,632,000! Of course with any risk/reward relationship, $1.6MM would also be at risk in the market!
I guess I would ask the question as to how many of us would actually hold a stock that goes up 160 times our original investment without succumbing to the urge to take profits? In this case, AIM would have kept one in the "game" with reasonable returns and great safety.
The graph is shown in my weekly report. Go to this site and then scroll down near the bottom of the page. There's a "Stacked Bar" graph showing the equity (on top) and cash (on bottom) stacked together to give total value throughout the histogram. Hope you like it!
execpc.com
Best regards, Tom |
