A.I.M. Users Bulletin Board

[Neil Scott]

Hi Aimster,

That is indeed the problem we have with tweeking systems to optimise the returns on a particular stock, it is all hindsight tweeking and that is why it is not particularly useful.

The only tweeking that I do to AIM these days, other than the LD AIM is the increase of SAFE on the buy side on successive buys.
I tend to do this on the smaller companies rather than the larger more stable companies.

One thing that may be useful when considering successive buys at lower prices is to look at the price/book ratio.
If the ratio is getting lower you are at least safer as the price approaches the book value. If the company gets liquidated at least the assets, if sold should provide some return rather than nothing.
It was also one of the parameters that Ben Graham considered the most important.

Regards

Neil