AIM vs B&H
When is AIM better, when is B&H better?
Some thoughts:
1 when you sell high and rebuy low, you have more shares after a cycle, so AIM wins.
Lucille Tomlinson mentions in her book that in the fifties people went off trading schemes to B&H, because of the growth of the market.
2 when you AIM you have dividend and interest, when B&H you have dividend only. Dividends can be reinvested straightaway or saved to reinvest at desirable prices.
At this moment dividend yield on the SP500 is similar to intermediate treasuries in the US. In europe treasuries pay 0% interest or worse at this moment.
3 when you buy at a market low, can you spend all cash? For example in March 2020 the crash was not deep enough for all cash to exhaust. Personally I did a voluntary injection into the market because the market turned 'early'.
4 when you buy shares you can increase the number of shares held. But you can also buy at a higher level than B&H did originally. So even if you have more shares the value increase could be lower.
There are more parameters to address, but not now(sunny outside)
Temporary conclusion:
- B&H likes growth
- AIM likes frequency/amplitude
- Buy deep value, on AIM signals
- Be carefull with sells, let it run. Sell at the 'top' when the market is ready to go down.
AI
