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

To: bob wallace who wrote (12047)	7/13/2000 12:49:31 PM
From: Bernie Goldberg	Read Replies (1) \| Respond to of 18928

Just curious as to when you simulated your buy of IBM. I checked it out and it was about 160 pre split in November of 1998. In July of 98 it was 120 Pre split. If you had AIMed any stock during a decline from 160 to 44 without any upticks in between there is no question you would have lost money. There is also no question that AIM would have mitigated the effect of the decline. B&H would have invested all of his money at 160 and would have lost 73% of his money. Mr. AIM would have only used half of his money on the original purchased. He would have made additional purchases on the way down, but they would have all lowered his average price per share. He also would probably end up with more shares than Mr. B&H by the time he ran out of money. He also because of the lower price per share would have recovered his original investment much faster than Mr. B&H. There is no question that AIM works best with a stock that starts high goes down and then increases in price. Since the split IBM has not been as low as 80 split adjusted. I can only assume that with the price today at 104 Mr. AIM would have done much better than double his money on IBM. I would like to have the dates of your simulation so that I could run it for myself. I'm sure it would be interesting to all of us to see how AIM By the Book compares to Aggressive AIM with a stock like IBM. Bernie

To: bob wallace who wrote (12047)	7/13/2000 2:23:11 PM
From: labestul	Read Replies (1) \| Respond to of 18928

Bob wrote: "NO MATTER WHERE YOU START YOU WILL MAKE A TON OF MONEY ... SO DON'T WORRY ABOUT IT AND JUST JUMP RIGHT IN." I have to disagree with this statement somewhat - quite right!!!! I only stated this as true in the hypothetical example under discussion. This will not be true for all stocks at all times ... still the implication of this (i.e. jump in whenever you have the cash) will remain true in the long run regardless of the stock (provided of course that its fundamentals are sound). Barry