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The Grabber

09/08/13 2:59 PM

#37094 RE: Conrad #37089

Thanks Conrad.

You make some valid points as well.
The Reserve is simply a part the Investor's excess liquid assets that are set apart for AIM investing.

1 Time Averaged Return on Invested Cash = ROTAC. . .
2 Time Averaged Return on Investment = ROTAI. . .


I was just trying to illustrate how LD-AIM improves ROCAR relative to Classic AIM and B&H.

LD-AIM minimizes risk on invested $ by not buying the initial core position as in Classic AIM; and certainly less $ than B&H. So using your terms, its ROTAI would exceed both Classic AIM and B&H.
But as Clive alluded to, return on Cash (ROTAC) is also important in assessing overall results.

So I try and keep things simple by just reporting total return.
Afterall, maximizing that (however it is achieved) is really the bottom line goal in my view.