A.I.M. Users Bulletin Board

[Conrad]

Hello Charlie. Risk never addressed?

I do not think that your assessement on this correct. It appears to me that risk minimization is an important feature on this Board. Maybe you are right that we do not dive into it in detail but this risk issue often addressed here.

The fact that we are AIMers is to a large extend due to the fact that you reduce risk substantialy by the AIM method, except if one keeps on buying on deep divers that dive because they are going down to zero.

If you consider that most stocks are not deep divers then with the AIM you can do very well, except the AIM BTB does less well than the fired-up AIMs.

As to the difficulty of looking forward, that's simply a problem we have not solved yet...we are waiting for the next Einstein te be born.

The way to tackle it is to be full in stocks when the market is low priced and to be in cash as the market is at a high. That is risk minimization. If one is greedy at the top and starts buying on the hope the rise will continue then he is betting on how the future will unfold in his favour while the AIMer is betting that the future will unfold against him!

Conrad