A.I.M. Users Bulletin Board

[Rien]

Hi LH,

You can never run out of Cash

Since I am thinking of algorithms to include in my SW, how about this one:
Assume a lump sum of $10,000.
That will earn you say 5% a year.
Buy a high yield stock for that 5%.
The yield from the stock will be added to the lump sum, and the interest over the lump sum will be used to buy further high yield shares.

You will never run out of cash that way!. In fact you will never loose your principal it will even increase due to the yield of the stock, only inflation will eat away at it.

Best,
Rien.