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Conrad

03/09/02 10:48 AM

#1541 RE: OldAIMGuy #1537

Hi Tom,

How much more efficient would our discussions be is we were sitting on the same table once a week!

So, Rico is a Dutchman too! All of us form the Dutch Connection.

I am beginning to see some light on Portfolio Control Addition discussion, but I think there might still be a case of talking about different things. Tom, on your Board you used for the Buy Order calculation the flowing example

Sell Order={Y-(Pc+0,1Y)} and called(or implied, or Rico did?) that as an Addition in the discussions. This causing the tempering of the buying. That is the same effect as using 0,9 on the Y and then Sell Order={0,9Y-PC}.

Now, when I read Rico's comments about Additions he appears to refer to adding 50% of the buy to the PC in order to get a new PC(the Positive Feedback concept). These two types of Additions are not related to each other. It made the essence of some discussions on Additions difficult to follow.

Now, after many, many discussions, I have come to the conclusion that the only significant core of the AIM principle is Lichello's idea of raising the Portfolio Control after a Buy and to keep it untouched after a Sell. This brilliantly simple Lichello idea results in the effect that the source from which investment growth eminates (The Base Investment=PC) is continually increased during the market cycles. The rest of the paraphranelia such as SAFE(as a Hold Zone), the freedom to temper the Buys and the Sell(with the SAFE or o