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

To: Steve Grabczyk who wrote (13897)	12/9/2000 3:04:19 PM
From: LemonHead	Read Replies (1) \| Respond to of 18928

Hi Steve, OT Question. If a man speaks in the forest, and there is no woman there to hear him, Is he still wrong? :^0) Keith@making_my_Christmas_Cards.org

To: Steve Grabczyk who wrote (13897)	12/10/2000 7:56:56 AM
From: rgammon	Read Replies (1) \| Respond to of 18928

8th year of L's Model Steve, There is a difference between the model and what most of us are doing. With a 5% sell/buy order, we won't sell that stock in a BIG lump when it rises back to $10 in the 8th year. We'll wind up selling just about as much, but in smaller increments of about $30,000. That figure does not give me pause. I agree with you, if we are only looking at the portfolio once per month and AIM told us to sell $180k or more at one shot, the size of the sell would make me a bit nervous. OTOH, the $150,000 or so Buys that occur in the 8th year of the model would worry me more. Robert

To: Steve Grabczyk who wrote (13897)	12/10/2000 8:09:19 AM
From: rgammon	Read Replies (2) \| Respond to of 18928

8th yr of L's model Steve, Another problem we will face is that with several successful AIM stocks, we could get to a point where the breadth of the portfolio gets more bothersome than the size of any one issue in the portfolio. Each of us will have a different metric for what that is, 10 stocks, 20 stocks, 30 stocks, at some point, we will refuse to add a single extra issue. Then, we'll have to suck in our guts and make those $30-$40-$50,000 buys/sells. That will be LESS painful than adding another issue to track. This is where our mindset changes. We'll get to this size of trade so gradually, over such a long period of time, that we won't be all that uncomfortable with the trade size. Tom's VTSS holding will become such a beasty in a few more semi cycles. He's held it quite a long time, its done absolutely wonderfully as an AIM stock for him, and there's little reason to believe that it won't continue in much the same vein for the next few years. Unless he takes some drastic action to reduce the size of the holding, he'll get to the $25,000 to $30,000 per trade of VTSS perhaps as early as 2002. So, Tom, are you adhering to the 5% rule (or fairly close to it) with your VTSS holding? Robert

To: Steve Grabczyk who wrote (13897)	12/10/2000 9:52:46 AM
From: OldAIMGuy	Read Replies (1) \| Respond to of 18928

Hi Steve, To carry your hypothetical trade one step further; what if your entire portfolio, worth over a $1MM were to rise in essence back to Mr. L's $10/share on an NAV basis? Further let's think about if it was made up of 20 stocks and 5 mutual funds? Now, would you hesitate to sell a total of $186,264.00 of equity, with each sale only representing $7,451.00 but in 25 different equities? :-) It's still fitting the business plan, so why hesitate at all? Best regards, Tom