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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?


To: OldAIMGuy who wrote (7975)7/16/1999 4:06:00 PM
From: OldAIMGuy  Read Replies (3) | Respond to of 18928
 
Hi everyone, Further to the discussion on various AIM
modifications.....

First, when we learn to drive, it's not the time to go experiment on
new performance options. All we have is the "book knowledge" of
what's involved in driving. It takes "seat of the pants" experience
before we can even make use of what we have without changing
anything. This was just as true at the high performance driving
school I attended in early May of this year. That school uses Ford
Mustang Cobra GTs as its usual stable of cars. However, you can bring
your own race car there for the time as well.

There was a newer racer there who had brought a beautiful new Porsche
Carerra 4 there for the class. In the morning session, as warm-up and
for the instructors to evaluate all of us, we all went out in the
Mustangs. This particular person was, at best, a "moving chicane" out
on the track. If you came up behind this person it was just as well
to pull into the pits and wait for the car to get far away again!

At the end of that early session I overheard this person saying,

"I'll be glad to get into my Porsche; those Mustangs are SO SLOW!!"

RIGHT!! IT WAS THE CAR'S FAULT!!! This person was still slow in the
Porsche!

It is important to understand AIM for the same reasons. With the
computer tools and software now available to the AIMer, we can
condense the learning time and understanding rather dramatically.
But, it's still important to make sure we know what we're doing
before we attempt to "supercharge" our accounts. I think this is what
Bernie G. is getting at. Here's some further data relating to the web
page execpc.com :

17 Year History Of AIM And Modifications
Method Ave. % At Risk Total Return ROCAR
By The Book 40.7% 461% 1133%
AIM W/Split SAFE 55.2% 785% 1427%
AIM W/"vealies" 71.8% 1074% 1495%
AIM W/SS & "vealies" 72.8% 1440% 1978%
Buy&Hold 100.0% 1710% 1710%

So with essentially 17 years of straight bull market, AIM needed
lots of help to attempt to compete with Buy and Hold. The biggest
gain with the least increase in risk on a ROCAR and total return
basis came by combining the Split SAFE and "vealie" concepts.

In more "normal" market times Buy And Hold over this much time would
not have done as well against the other methods. What will yet happen
in the future remains to be seen. Please choose the model that best
suits your capabilities, understanding and point in life.

AIMers, Start Your Engines!

Best regards, Tom