I thought I'd post the results of a little test I did. First of all, let me say, "AIM works!" Bottom-line, that's what counts. However, there are some things about it that bother me - just my personal quirks. One of which, is the fact that it really doesn't take Cash into account.
So, I modified AIM by the book in this way: SAFE is not 10% of the stock value, but rather 5% of cash + stock value. I then ran this through the 'Lichello series' and it gets to a million 7 months quicker and on less shares (which means better efficiency to my way of thinking). Here are the results. For each year AIM BTB is listed first and the modified AIM is listed second. The number of the year is listed first, then cash, and then stock value. I hope it is clear. I don't know how to format into columns on this site.
YEAREND CASH // STOCK
1...778 // 16,312 (AIM)
1...6052 // 11,141
2...2254 // 30,280 (AIM)
2...11,778 // 21,870
3...5027 // 56,232 (AIM)
3...23,021 // 42,965
4...10,442 // 104,424 (AIM)
4...45,108 // 84,451
5...19,907 // 193,928 (AIM)
5...88,524 // 166,043
6...37,954 // 360,128 (AIM)
6...173,888 // 326,521
7...71,514 // 688,784 (AIM)
7...341,755 // 642,164
8-6...97,897 // 911,384 (AIM)
8-6...479,177 // 900,585
One interesting note: notice that the ratio of cash to stocks in the modified aim hardly varies from the first year to the last, but the AIM BTB does. Interesting.
I thought this study might generate some interest.
Matt
AI
