A.I.M. Users Bulletin Board

[OldAIMGuy]

Hi V, Re: AIM vs Buy/Hold....................

It takes several market cycles, but AIM will eventually beat Buy/Hold in many cases. AIM starts with fewer shares so is handicapped. After some buy cycles it eventually will have as many or more shares than B/H. After that it's no contest. Each buy cycle lets AIM expand the value at risk at the time of the next sale. (this is what happens when AIM adds 1/2 of the buy value to Portfolio Control)

A stock that goes straight up from one time to another will beat AIM over the same time period on a total return basis. On a risk adjusted basis the performance is quite a bit closer.

Time is AIM's requirement. Time provides market cycles and those drive the AIM engine. Frequency and Amplitude of price cycles are what lubricate the system.

OAG