A.I.M. Users Bulletin Board
(Compliments of Silicon Investor!)
Welcome to the AIM Users Bulletin Board. This is the thread to post your thoughts, questions and comments on the use of Robert Lichello's Automatic Investment Management for handling the risk of being involved in the Equities markets.
The AIM strategy Guarantys the user LIFO gains of 20% minimum if the method is followed "by the book." It is ideally suited to those seeking long term investment growth while managing the risk of being invested.
AIM Users Home Page: aim-users.com
AIM Weekly Newsletter (free): aim-users.com
AIM Stock Example: aim-users.com
AIM Mutual Fund Example: aim-users.com
Software for AIM accounts: aim-users.com
I started using AIM full time in January of 1988, just after the nasty "crash" of '87. Those of us who have used AIM for a while are willing to help you get started with your own Equity Warehouse. Please feel free to ask questions here on this thread. Also, I've compiled some of the more frequent questions at:
AIM FAQ's: aim-users.com
and
AIM Q&A Page: Subject 19235
With AIM, you can choose stocks and funds for their Long Term investment potential. AIM will take care of most of your market timing and asset allocation needs while you wait for your tech stocks to prosper.
AIM for "Rational Exuberance,"
Tom Veale in WI
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Intro - Expectations and Reality
-You expected someone 6'5, 210#; The reality is 5'8,190#
-You expected someone with six-pack abs; The reality is more like a twelve-pack!
-You expected Ask Jeeves; The reality is See if Tom knows.
-You expected a SuperHero; The reality is you got a family man from Wisconsin.
-You expected James Bond; What you got was Austin Powers!
-This is much like the world of investing. Expectations and reality need to be understood together.
Is AIM a Successful Plan for Investing? YES!
Is Robert Lichello's Model based in reality? YES!
Are there other ways to be successful as investors? YES!
Is there a Safer, more Responsible way to be successful as an investor than AIM? NO!
Treating Investing As A Business
Work smarter, not harder.
Please remember the story of "The Man who was too lazy to fail." He always did everything smarter than the rest so as to save work!
Business Model - Equity Warehouse
Equities are Inventory to be Managed, just like auto parts or plumbing supplies. What is the Warehouse function?
1) maintain inventory to satisfy demand at a profit.
2) maintain liquidity to build inventory at fair prices.
Business Plan - Automatic Investment Management
AIM asks:
If you were only only willing to risk $10,000 when prices were low, why would you be willing to risk twice that after prices have doubled?"
Risk Tolerance -
-Do you fully understand the relationship between Risk and Reward?
-Do you fully grasp the concept of Risk Management?
-Knowing that the Marketplace is run by the Practical Joke Department, can you accept the risk of being involved in something that's not completely under your control?
Capabilities -
-Have you studied how Capital Markets work?
-Do you understand Market Psychology?
-Do you understand the basics of small business accounting?
-Can you read and understand financial journals, annual reports and prospectus'?
Time Commitment -
-Knowing your current work and family obligations, do you have time to properly attend to an active portfolio of equities?
-Can you afford a minimum of five minutes per week, per inventory item for review and managment?
Financial and Emotional Commitment -
-Have you placed your personal finances in good order? Funds commited to the marketplace must be earmarked so.
-Under Worst Case conditions, can you stand the thought of severe loss or dead money?
-Have you and your family (or parteners) discussed how failure AND success might affect your lives?
Ability to Make Decisions -
-Don't ignore decision making ability. You will have to make decisions and act upon them on a regular basis. The business model you have chosen does much of the work for you, but YOU still have to place the orders to buy or sell
portions of your inventory. If market conditions are going to affect you in a way as to paralyse your actions with indecision, this may not be the right business for you.
-Success and failure ride on your shoulders. AIM is contrary to Groupthink and Herd Mentality. Will you be able to see the reality of the situation and act when needed?
-Can you live with yourself knowing that at times you will make mistakes? Can you learn from your mistakes or just re-live them? In this business mistakes have to be Learning Experiences no matter how painful. Can you avoid
self-recriminations and "Get over it?"
AIM CAN HELP YOU WITH ALL OF THE ABOVE!
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