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

To: fuzzymath who wrote (9609)	12/19/1999 10:41:00 AM
From: OldAIMGuy	Read Replies (2) \| Respond to of 18928

Hi FM, As you mentioned in a previous post, there's plenty of SI members that will tell you about how much they've made, but rarely will they tell you how they survived the "bad times!" I think one of the unique features of this thread is that we're all achieving "bragging rights" in our own ways. I'm delighted that there are others that are showing their AIM histories in a public format. That way there's a view of what was happening not only in the good times but the bad as well. My own account is in a unique position this year. Normally at any given time in the last decade there's been a substantial profit in the account in the form of liquidation value. I'd say it's averaged about 50% liquidation profits. In other words, the then current price of the inventory was about 50% higher than the cost at any given time. In a recent check, however, it's showing about 85% gross profit. This is higher than usual. I think part of it is that we've had a magnificent year in 1999 and part is the general age of the inventory in my account. I'll have to spend some time analysing this. 1999 was unique in another way. I think I had four stocks bought out from the warehouse for CASH. That's going to smart come the Ides of April, but I'm not complaining. Quite a bit of the proceeds have gone to fatten up my income stream by buying into a high yielding bond fund and a REIT. Since I'm "unemployed" income is a nice thing to have! Basically I used the "cost" basis of the buy-outs to add to my income producers and took the "profit" portion and added to some positions that I already had. AIM is not only conservative, it's also contrarian in its function. This really bothers the Momentum crowd. AIM users tend to be fully invested only near the bottom of market cycles. Also, since it's contrarian, we tend to be selling shares of what the momentum players are buying (and visa versa). To the readers here I've likened AIM use to managing a warehouse full of stock certificates. We build inventory with discounted shares and sell off inventory when prices are good. A year ago in the Fall my warehouse inventory reached to the ceilings, but this year has been one of inventory reductions in most of my holdings. Thanks for participating, it's going to take me some time to get through all your material. I have a feeling with your background that you're going to enjoy looking at how the AIM algorithm functions. Best regards, Tom