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

To: Jack Jagernauth who wrote (9518)	12/9/1999 7:32:00 AM
From: Bernie Goldberg	Respond to of 18928

hi, imo 6 or 7 blue chips is too many. i have merck as an AIM stock by itself and i have used dupont. they do not provide very much action but there is some. right now all the talking heads are talking about what lousy investments ALL the pharmaceuticals have been this year. at the beginning of the year i had 114 fewer shares of MRK than i have today.(an increase of 19%) the price(split adjusted)today is about 50 cents higher than 1/1/99. i do not take into consideration the dividends (at my original purchase price 4%) or interest on the Cash Reserve). That gives me a return of over 23% on a stock that the people on TV tell me i am losing money on. the 19% increase in shares came from some AIM activity earlier in the year. if i had other blue chips combined with MRK i might have missed that. this is where i depart from Mr. L's recommendation. He recommends mostly blue chips and MFs. He also recommends 5 stocks in an AIM portfolio which i think is too conservative. the only funds i use are UOPIX which is far from conservative and TWGGX a global MF in my wife's IRA. IMO AIM is a conservative method of investing,perhaps a little too conservative, this is borne out by most of the posters here who have modified it so that it is practically unrecognizable, and much more complicated than was originally intended from Mr. L's invention. What most people here are doing is using Wade Cook's rolling stocks method. that's not for me. hope this helps. bernie

To: Jack Jagernauth who wrote (9518)	12/9/1999 12:48:00 PM
From: OldAIMGuy	Read Replies (2) \| Respond to of 18928

Hi Jack, There's nothing wrong with AIMing a basket of stocks, blue chip or not. However for the AIMer it complicates life a bit and also adds further conservativism to the portfolio. AIM's a "hedging strategy" all by itself. So is diversification. To combine them means to dampen much of the volatility that AIM so enjoys. If we then add in stocks with a BETA of 1.0 from the "Blue" end of the stock guide it would become positively "somnambulant" (sorry RFH, I couldn't resist!). AIMing individual stocks takes away the subjective nature of attempting to decide which stock to buy or sell inside the basket. AIMing conservative stocks can be done successfully and will reward the individual user given enough time in the market. Some choose to not AIM their pyramid foundation stocks and bonds at all. Then they AIM the upper structure of the pyramid until such time that those stocks have "matured" into something suitable for the foundation. If you are going to AIM a basket of stocks, please remember to make them in the same industry sector. At least then you won't have "infighting" inside the portfolio. Best regards, Tom