A.I.M. Users Bulletin Board

[Bernie Goldberg]

Hi Steve,
I didn't mean to insult you with the Enron remark. If it sounded like a slam at you I sincerely apologize it wasn't meant that way.
You wrote:In LD-AIM there are no borrowed $, no phantom $, no jingoistic magical spells.
There are definitely "virtual dollars" by your own definition. The way I understand it these dollars are virtually invested in the stock du jour. At least that is what we tell AIM.
The new AIM failing that I hear about is that AIM works around a core of shares that we never sell so why own them. I reiterate that this comment is based on the assumption that the price goes down. If the price goes up then we will indeed have to sell them. The beauty of AIM is that we won't sell all of them.Let's forget about deep divers for a moment. Let's pretend we find another Microsoft or Intel in its infancy. We set your LD-AIM at 5 purchases and five sales. The stock goes up and we sell five times. Finally we have nothing left but our virtual shares. The price continues to rise. We updated weekly of course and some of us might have updated daily or hourly based on some of the posts we read here. So we sold our shares in five batches, we are now owing LT Cap Gains tax. (I apologize to our Dutch friends) What we OWN is a virtual $5,000 dollars worth of MSFT stock less the actual taxes on the short term profits. These virtual shares are not saleable. They cannot be passed on as part of your inheritance. They really have absolutely no value. What we must do now is wait for our wonderful stock to fall down below the price that we sold it for. With the real AIM we would still have a our original dollar investment plus some in real shares.
We could try to find another miracle stock, but as we have learned from past experience that this isn't always that easy to do.
As far as the core is concerned, that is your investment. Usin real AIM it will grow! That is what it is supposed to do. At least that is what I have been told is what investing is all about.
You wrote:I guess it's AIM on Sale <smile> 2 for the price of 1
2 for the price of one maybe, but you're only getting one, and if you pick a real winner it might be 1/2 or less for the price of one.
Best wishes and a Happy New Year.
Bernie