Replies to post #484 on A.I.M. Users Bulletin Board (AIMUSERS)

[Rien]

Hi ET, Actually there is no difference between a single stock AIM account and a portfolio AIM account. You can treat both the same way.

However my previous post did not touch upon the subject of when to get out of a stock. And that was on purpose :-)
There are just to many personal flavors and different stocks to treat this subject in a general manner. In fact AIM does to a certain extend provide you with the algorithm to get out of a stock. But only for moves to the upside. AIM cannot help with non-movers or downside directions.

Here one would probably get into the realm of TA and FA to identify stocks that have no upside potential.

There is one exception, that is a single stock AIM, where the cash runs out, and AIM still generates a buy. In this case I think you should take a very hard look at the stock. Because AIM is in fact telling you: you were wrong with this one!. Better double check these stocks to see if you can really keep them around. In these cases ask somebody that does not have your kind of emotional attachment (to the stock) if you should stay the course. And remember: if in doubt, get out. (There are enough good stocks out there, if your's is'nt performing as expected, give it back and demand another :-))

Best,
Rien

[LemonHead]

I think you guys may be talking of AIMing several equities together under one account.

ET, you got it! Called my AIM, my portfolio or my own fund. Tom calls it the "Macro" view.

For the 1st couple of years I thought that "Diversification" was nutty, but then I got more dip with my chips than I imagined possible! So I then realized like with my business, that product mix is what brings home the bacon on a YOY basis. So I branched out and found out that I was buying & selling in different industries at different times.

The following statement you made may be the best overall statement I have ever read in regards to what AIM is really ment to do.

Of course once you believe an equity has run its course there is no reason not to switch it for another no matter how you use AIM.
Every good warehouse manager needs to do inventory at least once a year and prune the slow moving items from the shelves. The cost of owning dead inventory eats into your potential profits.

Leave out the "you believe", know and believe. Note when you speak of "dead inventory", you don't classify it as profitable or non profitable. Most won't understand that both can be "dead inventory" as you have very well pointed out. Very well said!!!

Thxs
LemonHead

PS - I don't intend to single just this post by ET, all others where just as important to me. AIM has reached a very high awareness since the "Pie Graph" on Tom's site now includes the AIMer's from around the world. Wonderful! Wonderfur!

How's that for a "One Haired" RedNeck that once washed his hands often during the Clinton White Water Days!

[OldAIMGuy]

Hi ET, Well said.

Best regards,
TV, Warehouse Superintendent.