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AIMster

03/01/10 6:51 PM

#626 RE: lostcowboy #610

it is my understanding from Praveen Puri blog that his system is based on the constant value plan, otherwise known as the constant dollar plan. I think the main reason he references Mr. Lichello's AIM plan is to draw people to his web site.

I did get his book, for what it's worth. It speaks as much toward investing psychology as it does to an actual investing method. A main point is that he's able to add about $2,000 per month to his account, which allows for fairly continued growth. Nice when you're obviously well paid!

If his site references AIM it's because in a sense he wants his system to be considered as much of an automatic investment management system as is Lichello's AIM, sans the "extra" work of maintaining a portfolio control and other attendant calculations. A simple annual rebalancing back to a target amount of $2k per holding (only if the value's gone above or below a specific % amount, otherwise do nothing 'til next year) and it's about as automatic as one could hope for.

Will it work as well as Lichello's AIM in the long run? Who knows? But he suggests that whilst this very simple version works for him, it can become the basis of developing one's own system. Both he and TooFuzzy are in agreement that one should develop a system, then stick to it.

Best,

AIMster