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Strategies & Market Trends : AIM Questions and Answers -- Ignore unavailable to you. Want to Upgrade?

To: LemonHead who wrote (133)	12/6/2000 10:28:26 AM
From: OldAIMGuy	Respond to of 221

Q........... Subject: Re: 100 baggers! Dear Thomas! Well I got the book "100 to 1 in the Stock Market" yesterday in the mail from Fraser Books. I read the first chapter yesterday and the second chapter tonight. What a gem of a book it has been so far! And based on what you have said I fully expect it to be so wonderful throughout. I can't wait to finish reading it. Thank you very much for referring me to it and Fraser books. I am mulling around on the idea of picking up a few more copies from Fraser Books to give to people in the future! Do you know if anyone has produced a book that follows in the tradition of Thomas Phelps? What is the best "modern" book (if any) on the topic of "100 baggers" or anything remotely similar? P.S. I'll have to try to explore A.I.M. whenever I have some free time. My best to you, Leon ------------------------------------------------- A.............. Dear Leon, I'm glad you are enjoying the Phelps book; I certainly did! I've been amazed at how well Mr. Phelps wrote and how clearly he presents his message. His perspective was very long term when he wrote the book - as he had been involved in Wall Street's shenanagans for about four decades. What is missing today in the market is such long term perspective. Although Mr. Phelps is a strong advocate of Buy & Hold, his strategies can be used for selecting stocks for the AIM method of risk management. As a "retiree" I have no source of new money to invest, so I must work with what I have. AIM allows me to have some risk management while waiting for Mr. Phelps' 100:1 returns! I've had two stocks rise 100:1 since starting my investing. AIM has allowed me to stay with those stocks when they were, by all measures, way overpriced. Because AIM set some cash aside along the way up, the risk was moderated. Because there was cash available, I was able to repurchase shares at a nice discount to previous sales and stay with the stock through thick and thin. Because AIM has me take some money out of the stock market near peaks, it hasn't allowed me to garner a full $100 for every $1 invested. However, I've managed $30 for each in one example and over $15 in the other. In neither case is the investment "over." Those stocks have gone from being way overvalued to being valued more correctly in recent months. This has allowed me to accumulate more shares. On the next leg of the Bull market, I'll make yet a closer approach to that theoretical 100:1 goal. And all of this has been done with moderated risk and no sleepless nights! I feel that Mr. Peter Lynch's books are also very good and basically follow a similar philosophy. You might want to read "One Up On Wall Street" or another title of his for comparison to Mr. Phelps. I've tried to list books that have had special meaning for me as I've learned about investing. The library is loaded with titles on the subject. I've tried to balance my short list with subjects which both agree with and challenge my own methods. We don't want to always just read the things with which we agree or we may limit our learning and horizons. Another short book that's out right now is interesting to me. Years ago I'd read the translation of Sun Tzu's "Art Of War" - an ancient text from China on how to successfully confront an "enemy." Dean Lundell recently wrote an interpretation of that text relative to investing in the modern sense. The title is "Sun Tsu's Art Of War For Traders And Investors." Again, this is not a text with which I agree completely, by any means. I am not a short term market trader, but a long term investor. By reading this book I've gained greater insight into the mentality of the amateur, professional and institutional "TRADER." My own interpretation is that the Short Term Trader is the Long Term Investor's adversary. Knowing the "enemy's" technique and "battle plan" provides me with valuable tactical information. It also has helped me with solidifying my long term strategy for success. So, as you approach your first skirmish in the Wall Street Wars, Mr. Lundell's book may help you, too! Happy Holidays, Tom aim-users.com