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To: LemonHead who wrote (14353)	1/13/2001 5:46:58 PM
From: THE FOX	Respond to of 18928

Hi Keith, I enjoyed both of your posts, however, I think speculation may have some merits. I only say this not to be contrary , although I think I am a contrarian at heart. I am quite new to investing and because of my lack of knowledge , compared to the other very successful investors on the AIM board, I am sure I make speculative investments rather then well thought out choices. I may be improving , but I am not sure that is a fact. I believe if you can reach a point of certainty that a particular stock is not going to go out of business tomorrow, and if you also buy at a reasonable price, whatever that is, you can speculate and be successful because of the fact you are buying very far from the most recent high. YES! I am rambling but so the past 2 years this has worked out for me. Buying at a low price seems to help me make up for my ignorance.I am not attempting to speculate I just think I do. Like I said earlier today, I enjoy your posts and knowledge. Hanging in the Green Mountains FOX

To: LemonHead who wrote (14353)	1/13/2001 7:36:14 PM
From: Jack Jagernauth	Respond to of 18928

Sorry Keith, I only ask questions around here :-) No, no...let me give it some thought and I will get back to you. Thanks again for your excellent response. Sincerely, Jack

To: LemonHead who wrote (14353)	1/15/2001 1:59:15 AM
From: Jack Jagernauth	Read Replies (3) \| Respond to of 18928

Hi Keith, Now, how would you answer your first question? Why is it that it seems okay for AIMers to consider exiting a loser at the 'bottom' and not consider exiting a winner at the 'top'? Generally, I do not speculate. I am strictly investing, however, since no one knows what the future holds, there is always some speculation involved. Anyway, here are a few thoughts: With AIM, I attempt to buy excellent businesses that I want to ‘own’ for the long-term, buy them when they are relatively ‘cheap’ and use AIM for risk management. Three to five years is my time horizon. We have not defined what a loser is. However, by the time we figure out that a stock is a ‘loser’, the stock has most likely been AIMed towards the bottom, the account is out of cash and we are showing a significant loss in that account. As some AIMers have mentioned, if the fundamentals are still sound, there is no need to consider exiting the account, and I agree. On the other hand, if, for whatever reason(s), we consider exiting the ‘loser’, a number of questions arise. Is the company likely to go bankrupt? What is the upside potential for this stock? What is the downside risk? When might this account show a profit, if ever? Could we salvage what is left of the loser and re-invest in a possible winner? My view is that similar consideration be given to the winners. What is the upside potential? What is the downside risk? Is the downside risk greater than the upside profit potential? Do I really want to go through the next big down cycle with this stock, and watch a 100% gain become a 30% loss? Time is money. Is there some other stock with less downside risk and more upside potential? Should I protect my profit, exit and move on? Sincerely, Jack