Mar 16th, 2008
Learning about investing from Jim Cramer is like finding God through Jim Bakker
You can do it, but its not the best idea.
I have had a few readers mention Jim Cramer. “Have you seen Jim Cramer?” “What do you think of Mad Money?”
Yes, I have seen him, and yes I have read Mad Money. Let me just say this straight out, Jim Cramer is garbage. The first time I saw him I was running on a treadmill at my health club, his TV show was on, and his voice was piercing through my music in my earphones. They ALWAYS have him on. I had to turn my ipod up to full volume, and If I go deaf, I am blaming Jim Cramer.
All joking aside, if you see it on TV, in a magazine, or in a newsletter chances are very good it is garbage. I like to review stocks and give my take about what I would do with a particular stock. I like to give both the upside and the downside to them which is just paramount to talking about it, I have never said to go out and buy any particular single stock. I treat individual stocks more like speculative fun gambling than anything.
Cramer has some good advice when it comes to money in general but his speculating on specific stocks is just that, guessing. I saw something that did an analysis of Cramers picks. They were roughly 50% correct. What really irks me is that he will tell people to
INVEST IN SOMETHING IMMEDIATELY.
Or you could take some time do your own analysis and then invest in whatever you would like, now doesn’t that sound like a much better idea?
- 6 Comments
- Investing
Love the post title, Jesse
And boy are you asking to get roasted…!
I also loved the title. One of the many things to consider is that if all Cramer’s disciples are running out to buy the stock, that will affect its current price. When supply stays the same but demand goes up…well so does price. If it’s a good value stock, maybe it’ll still be good even if they bought it at an inflated price. But if it was a good pick at the original price, it may not be good at the higher one.
Of course, the automatic increase makes people really excited if they got in early. But it won’t pan out all the time over the long run.
Cake Financial did some research on Jim Cramer, too, and we made a video about it. Check out “Cake on Cramer” here: https://www.cakefinancial.com/app/pubCakeVideos.do
Man, you are hilarious. I spit coffee all over my keyboard this morning when I read the title
Jesse, could you do some reviews of books you have read? I would like to know some good Financial books.
I agree heartly. Furthermore, he needs to attract attention somehow, usually by being provocative. His last comment on the financial sector in the USA is no less than completley irresponsible.
Choose your gurus carefuly. If at all…