A.I.M. Users Bulletin Board

[karw]

Hi ls7550,

The negative is that, unlike constant value/weighted, you can exhaust cash reserves (but not stocks).

Using AIM we express quantities in dollars(or euros,pounds etc).

We can also express quantities in shares. Then the cash reserve expressed in shares will be the variable quantity and the equity expressed in shares will be the cash-like quantity.

Using standard AIM we can never sell all our equity but we can exhaust our cash. Using the inverted AIM we can never sell our cash but we can exhaust our equity.

I ran the Lichello test (10,8,5,4,5 etc.) with this idea.
After 10 years we got to the 1 Million, a bit later than in the book, but interest was not included in this example, while it was included in the book.

It would be nice if someone could check if the spreadsheet is correct, because it is not easy to think about cash as equity and equity as cash.

This could potentially solve the cash exhaustion problem.





Best Regards,K