Replies to post #33172 on A.I.M. Users Bulletin Board (AIMUSERS)

[Conrad]

Hi AIM There . . . :-)

the word "hier" is Dutch for "here" in English so I tend to interpret your Forum name as "aim there". . .for me you are always "there"!

. . . .The fact that a stock declines, is not a reason to sell it, if the reasons for your purchase are still valid. I'd prefer to use fundamentals to decide which stocks to cull, I'll give some examples.

This is the Second most important rule for investing in anything! What follows from it is that an equity that is worth owning is worth buying at any time. Timing the buys in the right manner simply can add to the portfolio growth rate. Another important rule for investing is to own equity that is worth owning. . .sitting in the fence does noting much for you.

The most important rule is the Golden Rule: He that has the Gold makes the Rules. . . . :-) To AIM or not to AIM. . .to use B& H or not, to use stop losses or not. If he buys equity that is not worth owning he is doing something wrong, even though he had the Gold and makes the rules.

I would say that the AIM discussions here should implicitly apply to equities that are worth owning, for if one buys equities that are not worth owning then one is gambling and any method of buying on the down side is simply dangerous and should not be called AIMing and should not be discussed here. So what that an equity can start rising in value after a deep dip? . . it could all of sudden drop out of sight again just after one made a strong buy of an unworthy stock after a recovery. Money gone!

It would appear to me that all the methods that one can think off to capture "opportunities" after strong declines only are valid if you apply them to equities worth owning.

"aim hier", good remarks you made! You have hit the nail on its head!

IF one is planning to AIM, only do so with equities that you have analysed yourself and you have judged to be worth owning. If you don't feel 100% confident that you want to own that equity for its intrinsic value then only use stop losses and bail out fast on a decline, and only get back in when it has recovered to the value you bought it the first time, IF its value still rising then.

[OLD NO.7]

AimHier

In 2008 all I had was some mutual funds and ETF's. I learned a long time ago (1998-2001) that I am a losy stock picker.

You said: "I'm not a fan of stop losses" I can understand that but being retired I must draw the line somewhere. That is what I did back in 2008 my portfolio reached a critical level beyond which my retirement was in jeopardy.

"I'd prefer to use fundamentals " What I have learned is you can't trust the numbers reported either by companies or the government. The only thing I believe is the price action. Which is another reason to avoid individual stocks.

"Finally, I like dividend paying stocks" I agree but I would like to stay away from stocks and concentrate on ETF's.

Thanks for you thoughts
Larry G