I’ve always loved books and bookstores – a great place to haunt, browse and survey. In my college days I had a roommate who shared my passion. And since we were poor, what better place for our indulgences than a used book store.
We found just the place – Kurber’s Used Books on Prince Street in Tucson, Arizona. You just knew they’d have something you’d want at a price you could afford as soon as you approached. The place was real ramshackle – looking like a bunch of bad house trailers the tornado missed.
Forward ahead 20 years and I’m working for Uncle Sam as an Army auditor. Finally my big break occurs and I got a temporary assignment at Ft. Detrick, Maryland late in the spring. I’m still single and now have something to look forward to.
So I drove down there from Warren, Michigan and it’s a near perfect deal. I got a motel room at a place with a great pool and lounge chairs in a really great town, Frederick, Maryland. It’s the same town of Revolutionary & Civil War fame.
Well I got comfortably into the lifestyle of hanging around the pool. Remembering my college days, I started looking for used bookstores. And I found a great used bookstore off the highway and started haunting again. It’s a large store but that’s all the better – more to browse and find.
Now that I had a decent job and am expecting my Filipina fiancé to arrive any day, I remember back to my investing days and started looking in the finance section for investing books.
I was attracted to books like How I Made $2,000,000 in the Stock Market by Darvas. There were good books like The Hidden Stock Market, How to Choose $5.00 Stocks That Can Double in 6-12 Months.
On one of these trips I found a very special book: How to Make $1,000,000 in the Stock Market Automatically by Robert Lichello. That book showed me a simple contrary investing system with amazing power that small investors could use.
The system appealed to me because it didn’t require a lot of money, advice from a broker, in-depth research, ticker-watching or lots of time.
This system would buy shares of stock when the price was down and sell those same shares when the price went up. Now investors could know logically when they should buy, sell, or do nothing.
It reliably turned “paper profits” into real profits.
It reduced risk by keeping half your investment in cash.
Consistently selling stocks or options at a profit made it possible to achieve excellent profits from an investment – even when it never returned to its original price.
It made profits from the natural cycles of prices going up and down.
Anybody could learn this method and feel comfortable with it in a couple of hours.
At last, the average investor had a powerful mathematical system without emotions, without doubts, to guide him or her on their journey to profits.
The name he gave his system was AIM: The Automated Investing Method.
I eagerly read the whole book, but was disappointed by what was not written. Did the system work in the real world? How could the small investor max out profits? What stocks worked well in Lichello’s AIM system? What broker should I use?
I had more questions too. Why did AIM work? When should I change investments? How should I manage investments under AIM?
These and many other puzzles had no answers. So I decided to test AIM in the real world. I thought I’d try to find the answers to my questions. Let me see if I could understand and make AIM work for me.
My idea: to find ways to improve AIM and maximize its potential; bring it down to Earth, see how AIM truly was the best and easiest way to invest.
Successful investors would need to see that this system limited risk and maximized profits; that it was simple, and that it took little effort to be used for the rest of their investing life.
Investors had to know the best type of investments to use, how to manage investments once they were in the system, see the brilliance of the system, see how AIM always made the right choice, and see how their profits would grow…grow…GROW!
The best way I felt to show all these ideas was to show AIM in action with real stocks over a long time span. But first, how would AIM work in the real world with real stocks?
I was skeptical and felt other investors would be skeptical too.
There was no real evidence from How to Make a $1,000,000 in the Stock Market Automatically that AIM worked with real stocks. And how would AIM work over the long haul in different stock markets?
I didn’t want this investing method until I was convinced it would work for all investors over the long haul.
Since I’m an auditor, I had plenty of 14-column paper (no computers back then!) and decided to plot prices. Luckily I had saved all my back issues of Baron’s and had past prices. I started picking out stocks and went back three years and listed their monthly prices.
Then I tracked them against AIM over three years of stock history. This kept going until I had 75 spreadsheets.
Here is the punchline: After studying the 75 spreadsheets on 14 column paper, I knew AIM worked in the real world.
Then in my auditor’s mind I began to have ideas to make AIM easier, more profitable, and more understandable to investors.
Then one fateful, freezing night in a hotel room in Pyongteck, South Korea, the ideas for the “Jeff Weber Improvements” became a book.
My auditor’s mind led me though of many important improvements to make AIM easier and more profitable for all investors.
I wanted to share my improvements with all investors. The only way I could do that was to write my own book.
Major improvements I knew I had to put in the book were:
– Reducing risk, improving profits and simplifying AIM
– How to pick the best investments for AIM
– How to manage investments under AIM
– Using only 1/3 cash, 2/3 stocks for conservative stocks
– 10 rules of AIM investing
– When to sell an investment under AIM
And there were more improvements I found for the AIM investing method, which I will tell you about in Part 2 of this story.
Eventually you’ll learn what the book is called and how you can get it for yourself. But if you can’t stand the wait, click here.
Thanks for reading my story about how one single book can change your life. If you see yourself as a successful investor (or want to), subscribe to my blog by clicking here, entering your name & best email address, and clicking the Subscribe button. Then you’ll know when I publish part 2 of this story.
More importantly, you’ll learn how you too can use the AIM investing method to earn profits – scientifically and automatically – over a lifetime.
Disclaimer: Jeff 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.