Replies to post #24966 on A.I.M. Users Bulletin Board (AIMUSERS)

[Toofuzzy]

Hi Hook

Aim solves a number of problems for investors EXCEPT and individual company going bust.

ETFs, CEFs, and no - load mutual funds (Vanguard hint hint) solve that problem.

First: decide if you want to diversify by style or industry.
Second: make a list of funds that you want to own that will meet that goal. Somewhere between 5 (large, small, foreign,REIT , bond) and 10.
Third: Either buy them all or buy them gradually as you have more funds available.
Fourth: Stick with the plan you start with and don't change it because you get nervous or on a whim.

The main benefit of AIM is that it takes the emotion out of investing. Allow it to do that. Any changes you make to your original plan are likely to be emotional.

If you think you can make 1 or 2 or 5% more per year by making some change you probably won't or it will be by increasing risk.

Not always
Toofuzzy

[jersey al]

Hi Hook,

Seems to happen quite a bit ... spend the weekend making up a list of stocks to buy ... and then before you can fire up the computer ... the stocks all go up and into the hold zone instead of staying in the buy zone.

I dunno.

But having cash in your pocket and browsing around for some bargains to buy is a lot better than being worried sick because stock prices dropped.

There was one I got interested in, but I checked and it just went ex-dividend. Paid an 8% dividend.

I dunnooooo.

;^)

P.S. A few years ago, I called up one of the managers at a mutual fund to "complain" that one of the public finance sites had got some of his fund's info incorrectly. He sighed and said he would call them and get them to fix the data. Anyway, we got to chatting and he admitted that buying stocks is more like visiting a garage sale or boot sale or one of those multi-acre rummage sales. Cash is king. If you gots cash, you can hunt for bargains.

The only stock guru who comes close to what AIM does is ... [drum roll, please] ... Warren Buffett. He loves having beaucoup cash in his pocket so he can dip there and dip there, buy a little here and buy a little there, just looking for the right morsel to snap up.


- Al