The bottom line is: when a stock drops from 35 to around 22 and stays there, AIM just does not work. Even if there is a bottom at 18. I suppose you can say, in retrospect, that I should have started with 70% in cash and allowed all the buys, but if you do that with all your stocks your performance with suffer.
This is the downside of AIMing each individually rather than in a portfolio as Lichello recommended. In a portfolio move you allow for more human input into which to keep adding to and which to shed. A further strike against us is that we can't know, in advance what the optimum level of initial cash reserve should be.
In the case where one's preference is to AIM each individually, however, in a case like this (which, BTW is an equally valid method, a choice we each must make. Indeed, I would be surprised if some don't have a hybrid portfolio with some holdings being AIMed as a group and others individually), the larger question becomes is AIM still a valid system to use on this particular holding? Or, knowing that Intel isn't likely to be going bankrupt anytime soon (at least we hope not), is it worth adding additional money to, wanting to "jumpstart" the AIM program at the current lower level? A question you must answer given the overall situation of your portfolio. One good thing is that at least you're bringing in a decent dividend meanwhile, so your money isn't totally tied up doing nothing, with no return at all.
But you do raise an interesting issue of what to do if AIM, through no fault of its own, just isn't working. Which will give us further points of discussion. Thank you.
Best,
AIMster
