AI
Wednesday, February 02, 2011 4:02:51 AM
Hi Steve
I don't know what the Coffee House Portfolio is, so send me there if you please.
A typical Coffee House is a form of diverse 60% stock, 40% bond blend.
There's a whole range of 'lazy' portfolio's historic backtest data in Simba's Backtest Spreadsheet available via http://www.bogleheads.org/forum/viewtopic.php?t=2520 including The Ultimate Buy and Hold allocation (another 60/40 stock/bond type blend) that Tom basis his asset allocation on.
I get the impression that when you get sales often you immediately reinvest those funds in other candidates, maybe starting new AIM's?
Not really. At least I don't intend to
I've circled the sort of thing that led me to that perception. The red circled case shows 10 buys, 1 sell and the stock % rising around 9%, cash % declining around 9%. For the blue circled case zero buys, 6 sells, but both the stock % and cash % stayed much the same which implied to me that those sales had been redeployed into other (new) AIM's instead of the proceeds being used to build up cash reserves.
I do have other long term investments, but only talk about my AIM stuff here.
Ah! I had thought that you were solely using AIM and with that volatility was running around naked and at risk of a large loss should a freak sequence of bad years occur sequentially. Totally different to if you're covered by other investments as you're then exposed to potential freak sequences of good years occurring sequentially and maybe hitting big time gains, but with your back covered.
Best. Clive.
I don't know what the Coffee House Portfolio is, so send me there if you please.
A typical Coffee House is a form of diverse 60% stock, 40% bond blend.
There's a whole range of 'lazy' portfolio's historic backtest data in Simba's Backtest Spreadsheet available via http://www.bogleheads.org/forum/viewtopic.php?t=2520 including The Ultimate Buy and Hold allocation (another 60/40 stock/bond type blend) that Tom basis his asset allocation on.
I get the impression that when you get sales often you immediately reinvest those funds in other candidates, maybe starting new AIM's?
Not really. At least I don't intend to
I've circled the sort of thing that led me to that perception. The red circled case shows 10 buys, 1 sell and the stock % rising around 9%, cash % declining around 9%. For the blue circled case zero buys, 6 sells, but both the stock % and cash % stayed much the same which implied to me that those sales had been redeployed into other (new) AIM's instead of the proceeds being used to build up cash reserves.
I do have other long term investments, but only talk about my AIM stuff here.
Ah! I had thought that you were solely using AIM and with that volatility was running around naked and at risk of a large loss should a freak sequence of bad years occur sequentially. Totally different to if you're covered by other investments as you're then exposed to potential freak sequences of good years occurring sequentially and maybe hitting big time gains, but with your back covered.
Best. Clive.
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