Cisco Systems (CSCO)

[OldAIMGuy]

Hi L, The method of management is from a 1977 book and is called AIM (Automatic Investment Management). It is most like "scale trading" but has several unique features.

Overall, AIM works in a contrary fashion to most "trading" methods. It sells small amounts of the stock inventory while prices rise and then uses the cash generated to buy small amounts of the equity when prices are in decline.

Most traders sell out of a stock if they see it starting to decline. They like to buy into a stock that is showing strong momentum growth. So, traders tend to be buying when AIM is selling and visa versa.

I have devoted a lot of years to the AIM method and have a web site http://www.aim-users.com which tells a bit about the method and has various examples. The chart I posted earlier shows what traditional AIM would have done with CSCO over the last few years.

AIM won't save a dying company. It won't keep the crooks away. However, it does a nice job of profitably capturing the natural volatility of most individual stock. It will also work with sector funds. (I even use AIM with my long term bond funds)

I'm glad you liked the graph if you'd like to see more of the examples, look at
http://www.aim-users.com/pic.htm .
You'll see its success and failure with different kinds of companies from "tech wreck" to retail.

Best regards, Tom