Replies to post #42145 on A.I.M. Users Bulletin Board (AIMUSERS)

[Toofuzzy]

HI Allen

I have heard is name before but I forget the context. Maybe he wrote another book I read.

Toofuzzy

[OldAIMGuy]

Hi Allen, Re: "Brainwashing............."

I read it maybe 10 years ago. It concurs with the idea of taking profits when they are available (and not waiting for the tooth fairy) and buying when there are significant discounts. I don't remember his method being as systematic as AIM, but it worked in the same direction.

I think his notion of segregating one's investments by category makes good sense. We can't expect our income investments to have the frequency and amplitude of price change of our "highest growth stocks" and visa versa. For me, doing this has created separate portfolio styles with different goals. Those goals are then translated into somewhat different AIM settings for portfolio management.

My income components I AIM using less cash and a fixed upper ceiling on cash percentage. My growth investments generally use a higher peak cash reserve (and probably average cash reserve) and different internal settings which reflect the personality of the investment, itself.

I also don't do comparisons of the income side and the growth sides as their goals are so different. It not would be a good idea, for instance to look at the income side and say, "It only grew 4% last year. I think I'll sell it." just because the growth side did 12%. Each has its own purpose. Also, that leads to rear-view-mirror investing.

I think I either gave that book away or donated it to the library for their book sale. I know I don't have it any more. Thanks for the review.