The Challenge of Creating an Automatic Investment Management Spreadsheet
As someone who has been AIMing for over 30 years, I know the value of using a spreadsheet to calculate buy and sell trades using the Automatic Investment Management (AIM) method as first developed by Robert Lichello.
Robert Lichello explained how to build a spreadsheet in his book, How To Make $1,000,000 In The Stock Market Automatically. I learned from him in the 1990’s and have been using these spreadsheets for my own investing portfolios and those of my clients ever since.
If you want to get a detailed explanation of every column in an AIM spreadsheet, along with step-by-step examples of each calculation, I recommend you buy and read my latest book, AIM for Millions With Stock Options. The paperback book is a full size 8.5x11 inches with easy-to-read spreadsheet formulas and calculations.
Here is an excerpt from the book:
You need one spreadsheet for every company stock or LEAPS that you own. Whenever you have a new buy or sell, you need to make a new entry in your spreadsheet. It will give you a new stock or LEAPS value, CASH value, and portfolio value among other things.
For my clients, I check or update their spreadsheets every month. Good clients have a diversified portfolio of 10 or more LEAPS. This is a lot of spreadsheets! But this means I know AIM spreadsheets from every direction!
Challenge #1 of an automatic spreadsheet for AIM investing
Every so often, a client or subscriber asks me if there is a way to create a spreadsheet that does AIM calculations automatically.
For instance, once you had an investment of a certain number of stocks or LEAPS, you could enter a different arbitrary price of the stock or LEAPS. Then it would tell you whether you should buy more, sell some, or do nothing.
Even better is if the spreadsheet told you the ideal LIMIT ORDERS for both a buy and sell based on your current holdings.
It would tell you the price for the trade. And how many stocks or LEAPS option contracts to trade.
My business partner Brett has used his Excel programming skills to make his own spreadsheet that gives him limit buy and sell prices using the AIM method. Here is what he says about it:
With my Automatic Investment Management spreadsheet that I've created, it has greatly reduced the time it takes me to calculate my next buy and sell limit orders after every trade. I automated as many of the calculations as I could. But there is still both an art and science to determining the limit orders. I haven't devised an algorithm that makes the calculations 100% automated for every situation.
This is the first major challenge of creating a spreadsheet for Automatic Investment Management or AIM. It still requires investor knowledge and judgment!
What to do about this challenge?
Brett has become almost 100% independent on his investing with AIM after learning from me over several years. But he still asks me to review his calculations as a double check.
Sometimes I still find mistakes in his calculations. Sometimes I tell him I figured it differently, and it turns out I made a mistake! It doesn't happen very often but I admit I'm not perfect.
It leads me to conclude that an AIM spreadsheet is still only valuable and safe as long as the AIM investor understands what the numbers are telling him or her!
Challenge #2 with an Automatic Investment Management Spreadsheet
Recently, another investor who is using AIM with LEAPS shared his spreadsheet with us. It is very impressive and powerful!
Let’s call him Bill. Bill’s spreadsheet lets you type in any price of a stock or LEAPS. Based on your current holdings, it tells you whether you should buy, sell, or do nothing.We wonder if other investors would want to have a spreadsheet like this. Would you?
This leads to another challenge. To make an Automatic Investment Management spreadsheet that is worthy of AIM and Robert Lichello's legacy, it will take a lot of work. Is it worth it? Would anyone actually use it?
How JJJ INVESTING can help you with AIM INVESTING
I founded JJJ Investing Services to teach people about AIM investing so they can earn a lifetime of profits safely, automatically, and scientifically. After working at it for over 30 years there are many clients who are now successful AIM investors. (look at the page for JJJ Investing reviews to see their testimonials.)
Would a spreadsheet for your AIM calculations be a major benefit to you? If you are reading this article and are saying "yes" to yourself, please contact me at jeff@jjjinvesting.biz.
Between myself and my business partner Brett, we have the knowledge and skills to make a unique and powerful Automatic Investment Management spreadsheet. But we won't do it unless we know there are people ready and eager to use it.
We also won’t release an AIM spreadsheet into the world without qualifying the people who use it. (See Challenge #1.) In my experience, successful AIM investors have proven they can record and calculate their trades by hand or in a simple spreadsheet already.
In the meantime, you are always welcome to contact me for 1-on-1 investing help to use AIM with your investing portfolio. Use the Contact page on my website or write a comment below.
Sincerely,
Jeff
DISCLAIMER
Jeffrey Weber is not an investment adviser and gives only his personal view and opinion, never making any investment advice or recommendation to buy or sell specific securities. Investors in financial assets must do so at their own responsibility and with due caution as they involve a significant degree of risk. Before investing in financial assets, investors should do their own research and consult a professional investment adviser.