Hi Karel,
Not very difficult at all. Just ran the numbers using the same methods I have used previously except for one modification which is what I use for all Mutual Funds. Since SPY represents 500 different stocks I figured it would be alright to consider it a fund. The modification is to start with a Cash Reserve of 20% since Funds are not as volatile as individual stocks.
Here's what I found starting in January of 1998.
SPY price as of January 1, 1998 $98.313
SPY price as of July 1, 2002 $84.71
This would give Mr. B & H a net loss of 14%
Mr. AIM started with a portfolio of $20,000.
163 shares worth $16,000 and $4,000 in Cash Reserve.
As of July 1, 2002 Mr. AIM has 157 shares worth $13,278 and $5,785. Total Portfolio Value of $19,060 for a net loss of a little less than 5%.
The dividends that SPY pays are so small as to be inconsequential. There was a total of 7 transactions, 4 sales and 3 buys.
I believe that Mr. AIM would have outperformed Mr. B & H by about 10%. Furthermore, Mr. AIM has increased his Cash by 44% and will be able to increase his number of shares by about 30 to 40% should the decline continue.
Total time spent doing this was about 15 minutes.
Bernie
Market Data 
Markets 
AI
