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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Larry Grzemkowski who wrote (41267)	4/1/2001 10:57:05 AM
From: OldAIMGuy	Read Replies (1) \| Respond to of 54805

Hi Larry, Thanks for the chart of relative gains in shares, etc. and paper losses. My portfolio isn't derived from the G&K lists but probably shares some common stocks or at least industry sectors. The Equity/Cash balancing act that AIM provides is represented in my stacked bar graphs from the AIM web site. Here are two graphs that will give a pictorial view of what happens inside an AIM account as the value of the underlying securities changes. The first graph shows the latest 5 years history while the second shows the 1990s decade. aim-users.com (5 Years) aim-users.com (1990s) Please note in these graphs that as the market value of the securities dropped, AIM used the Cash Set-aside to purchase additional equity. Then with either the cash exhausted or when the market turned around, AIM capped the Equity market value at a certain point and sold shares in the following rally to recover the cash reserves. There have been a few times in my history with AIM where I've been 100% invested. Late 1990, 1994 and 1998 come to mind. Again now in 2001 my account is essentially tapped out of cash. For an AIMer, this is an uncomfortable position to be in - being out of purchasing power. However, there's been much more time when the Equity/Cash ratio was much more conservative. Last year the Cash hit an all time high point in total dollars even though it wasn't an all time high in percentage. I know that the G&K concept involves buy and hold, but it's possible that the G&K selection process is an ideal method of choosing stocks that would benefit from AIM's management. AIM would be a more conservative (or hedged) method of owning the same equities. It might make the roller coaster ride a bit less exciting, but easier to live through! I believe there are several AIM users that also own G&K stocks. I'll ask on the AIM thread if we can get some further examples specific to G&K equities. Best regards, Tom