AI
Friday, July 26, 2013 2:35:11 PM
Hi Clive,
Hope you are doing well.
Back in 1984 I was finishing up studying for the Chartered Financial Consultant designation. In one of our investing textbooks I was introduced to what they called the "Constant Dollar" method of investing. Some call it "Constant Value".
Basically a person takes their initial investment amount and makes buys and sells around that value....always readjusting back to the original value with their buys and sells. If someone invests $100,000 in a stock or fund then that is their "Constant Dollar" amount for the duration of the program. They can set up a rule that when it increases to $110,000 they will sell $10,000 to get back to the "Constant Dollar" amount. If it should decrease to $90,000 then they would buy $10,000 and get the value back to $100,000.
Since I learned this style of money management the Residual Buys created by AIM sort of play at my mind even though I try to ignore them.
I understand it is a feature (not a "flaw"), but I still haven't totally accepted it as a feature after all these years. Maybe one day
.
Best regards,
Ray
Hope you are doing well.
Back in 1984 I was finishing up studying for the Chartered Financial Consultant designation. In one of our investing textbooks I was introduced to what they called the "Constant Dollar" method of investing. Some call it "Constant Value".
Basically a person takes their initial investment amount and makes buys and sells around that value....always readjusting back to the original value with their buys and sells. If someone invests $100,000 in a stock or fund then that is their "Constant Dollar" amount for the duration of the program. They can set up a rule that when it increases to $110,000 they will sell $10,000 to get back to the "Constant Dollar" amount. If it should decrease to $90,000 then they would buy $10,000 and get the value back to $100,000.
Since I learned this style of money management the Residual Buys created by AIM sort of play at my mind even though I try to ignore them.
I understand it is a feature (not a "flaw"), but I still haven't totally accepted it as a feature after all these years. Maybe one day
. Best regards,
Ray
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