Hello Everyone,
Even though I came over to IHUB from SI because of AIM, I find this board to be very interesting and useful. I shall certainly read every post and contribute whenever I feel I have something valuable to say. The purpose of this post however is to ask three questions. After stating these questions I will provide some background on how and why I have these questions. I hope some of you might be able to either answer the questions or direct me to possible sources of answers. The questions are:
(1) What is "Double Dollar Cost Averaging" ?
(2) What is "Dollar Value Selling"?
(3) Who is E. S. Emory and in what publication did he (or she) introduce the concept of "Dollar Value Selling"?
The first edition of Lichello's "How To Make $1,000,000 ..." was published in 1977 and I gather that Synchrovest (i.e. Power Investing) was published earlier than that.
In 1980 Chuck Chakrapani published "The Money Spinner". This system (which what I first used and continue to be influenced by)is very similar to AIM. Basically The Money Spinner (TMS) uses standard AIM settings but rather than updating periodically its asks the question at what prices per share would I buy or sell 100 shares using standard AIM settings? One then issues GTC buy and sell orders not unlike what many modern AIMers do.I won't go into any more detail here except to observe that TMS looks very similar to AIM and in fact is clearly (in my opinion) a clear variation on AIM. My guess is that TMS was based on AIM. At this point let's look a direct quotation from the TMS book.
Is the Money Spinner Concept new? The answer to this question is a qualified YES. The concept of "dollar cost averaging" has been known for years. An improvement on this system known as "double dollar cost averaging" was introduced somewhat later which increased the profitability of the earlier system.
Subsequent to those developments, E. S. Emory introduced another system known as "dollar value selling" which is, in fact, the forerunner of the Money Spinner.
The dollar value selling system was adopted with varying degrees of success by different investors. Among this genre of techniques, perhaps the system developed by R. Lichello comes closest to the Money Spinner. Like the Money Spinner, Lichello's system IMPLICITLY uses the dollar cost averaging and dollar value selling principles.
I have to ask myself ... what is the system of R. Lichello which is referred to in this quote? As I observed above AIM and TMS are so similar to one another that AIM could be the system in question. Moreover, the publishing dates of AIM (1977) and TMS (1980) certainly make this possible.
Now here comes the interesting part.
Chuck Chakrapani also published an excellent investment book called "Financial Freedom On $5 A Day". I have two copies of book. One copy is the 6th edition from 1995 and the other is the first edition from 1983. The book explores and explains several investment techniques. The 1983 edition briefly describes TMS but the 1995 edition does not. I don't know in which edition reference to TMS disappeared but it is sufficient here to quote from the first edition.
STRATEGY 3: FORMULA PLANS ...
Another system developed by R. Lichello, is called the Synchrovest (Superpower Investing, published by New American Library, New York). This system recommends that you invest a fixed amount every month. Part of this amount should be invested in the stock market and the rest deposited in a savings account. The amount to be invested in the stock market each month will be decided on the stock's performance the previous month. The leftover money will go into the savings account. His book describes the system in detail.
More recently I developed a system called the Money Spinner. This system is based on several earlier systems including Lichello's system. The Money Spinner system differs from earlier systems in many subtle ways. Simply, this is how the system works: ...
Are we being told three years later that TMS is based on Synchrovest? (Rhetorical Question)
In spite of this quote it still seems clear to me that TMS was based on AIM but who knows.
In any event I would appreciate any information on the three questions posed at the start of posting.
Thanks,
Barry Savage
AI
