A.I.M. Users Bulletin Board

[lucascostner]

Greetings! I have a question about AIM investing. I recently discovered Mr. Lichello’s fascinating book and found it was truly the answer to the puzzle I have struggled with for years in investing. Eager to verify his claims I have done extensive backtests over historical data with amazing results. One thing I notice however, is that when used with a good stock (one that more or less is trending upward over time) over the course of time it gets very heavily into the cash side. I wanted to know if you experienced AIM investors typically rebalance once a year back to an 80/20 cash balance (or whatever your preferred ratio is) or how you handle this? Because over time in all my backtests good performing stocks get so heavily weighted in cash over time and at a certain point it’s just a lot of cash sitting around.