| To: aptus who wrote (15943) | 5/17/2001 5:26:59 AM |
| From: aptus | Read Replies (1) of 18531 |
| |
Hello Everyone,
Here's the second presentation of AIM 2001 in Las Vegas. It was given by Bernie Goldberg...
Bernie Goldberg’s presentation was called, “3 COM and Palm: Turning a loser into a Winner.”
There was a handout for this presentation.
1. Bernie purchased 3com in 1999: 200 shares at $39. The stock didn’t do well over the last year. On April 22, 2001 he now has 450 shares @ $21.
2. On Dec. 16, 1999 the price was $48.
3. He made a series of buys that weren’t all recommended by AIM.
4. When executing a buy or sell AIM recommendation, he immediately changes the minimum number of shares to trade so that is always reflects 5% of his total shares (i.e. he divides the number of shares by 20).
5. After 3 COM spun off Palm, he combined the two individual stocks into one account thereby creating a mini-mutual fund.
6. He showed a sick looking graph of 3 COM and said that even if a stock does very poorly, you can still do fairly well with AIM.
7. 3 COM issued 1.5 shares of Palm for every 3 COM share owned.
8. When that happened, Bernie set up a mini-fund with 438 shares of 3 COM and 649 shares of Palm. (These were the prices at the time of the spin off).
9. Bernie than used an arbitrary 500 shares @ $55.6051 (since his total equity value – i.e. 3 COM and Palm shares -- was $27802, he divided this number by 500 to come up with a NAV for his mini-fund ).
10. He only pays attention to cash dividends every 6 months or so. He treats cash dividends as a bonus. In this case, Bernie purchased more Palm shares with his dividends.
11. Currently his portfolio is even, but the number of shares is a lot more than when he started. Bernie now has 1600 3 COM shares and 1200 Palm shares. Therefore when the stocks turn up, he will see profits that much sooner than if he didn’t use AIM.
12. Bernie chooses to keep each stock in his mini-fund at 50% of the total equity in his portfolio. So he buys and sells in a way that maintains this ratio whenever AIM recommends a purchase or sale.
13. There were occasions when purchasing 3COM was better than buying PALM (since 3COM was about to issue all shareholders some PALM shares). Some said that the market would take care of the discrepancy, however the market never did take care of it.
14. One mistake Bernie said he made was with his RIG shares. He had just started to use Vealies and overdid it. Rather than selling when AIM recommended it, Bernie kept pulling Vealies. Then the oil market dropped and he discovered that he had no cash to act on the AIM buy recommendations.
15. He had to go through a 2 year period with no cash. A lesson well learned, but the hard way.
16. Bernie’s first stock purchase was 300 shares of MRK @ $34 in 1994. He wasn’t AIMing it at the time.
17. He said that MRK gives at least one buy and one sell each year and he’s seen an almost 7 fold increase in 6 years.
18. His second stock purchase was APCC in July 1995. He purchased 300 shares @ $16 and APCC was the first one he started AIMing right away.
19. He AIMed APCC by the book.
20. An interesting side note, Bernie bought a brand new jeep with the money he made AIMing APCC and he still had more money in his account than when he started. His neighbor was amazed at what he accomplished and, as it turns out, had purchased the Lichello video tape and manual for $300 -- but he never used it.
Up next, Barry Savage...
regards,
mark.
http://www.automaticinvestor.com |
