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#1
03-19-2007, 08:05 PM
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Jim Cramer
Okay everyone has seen Jim Cramer's mad money show on CNBC. I kindof enjoy watching him, although I have no clue if he actually knows anything about finance. I am discouraged by the fact that my grandmother listens to his every word and buys/sells anything he says. Am I the only one who likes watching this guy? Does he know what he is talking about?
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#4
03-20-2007, 02:10 AM
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Re: Jim Cramer
[ QUOTE ]
Anyone who knows a lot about the stock market would be too busy getting incredibly rich to do a tv show. Also, sharing your information decreases your edge. [/ QUOTE ] This isn't totally true. Have you heard of frontloading? He could load up on a stock, mention it on his show (stocks go crazy when he mentions them), then sell.
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#5
03-20-2007, 02:27 AM
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Re: Jim Cramer
[ QUOTE ]
[ QUOTE ] Anyone who knows a lot about the stock market would be too busy getting incredibly rich to do a tv show. Also, sharing your information decreases your edge. [/ QUOTE ] This isn't totally true. Have you heard of frontloading? He could load up on a stock, mention it on his show (stocks go crazy when he mentions them), then sell. [/ QUOTE ] That seems more like a recipe for getting sued by the SEC than for getting rich.
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#6
03-20-2007, 03:04 AM
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Re: Jim Cramer
[ QUOTE ]
[ QUOTE ] [ QUOTE ] Anyone who knows a lot about the stock market would be too busy getting incredibly rich to do a tv show. Also, sharing your information decreases your edge. [/ QUOTE ] This isn't totally true. Have you heard of frontloading? He could load up on a stock, mention it on his show (stocks go crazy when he mentions them), then sell. [/ QUOTE ] That seems more like a recipe for getting sued by the SEC than for getting rich. [/ QUOTE ] I seem to recall he did have some legal troubles for doing the ole pump and dump. Trading solely on whatever his snippit du jour is would definitely be a recipe for disaster, but I don't see anything wrong with watching his program to pick up on some ideas to follow up with the proper due dilligence.
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#7
03-20-2007, 03:52 AM
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Re: Jim Cramer
[ QUOTE ]
This isn't totally true. Have you heard of frontloading? He could load up on a stock, mention it on his show (stocks go crazy when he mentions them), then sell. [/ QUOTE ] CNBC doesn't let him talk about stocks with under a certain market capitalization because of that reason. He can't own stocks personally, just for his charitable trust. Personally I think his mission of bringing investing to the masses is an honorable one. He explicitly tells people both in his books and on the show to not go out and buy every stock he recommends. His whole philosophy is that of "buy and homework", which means you have to evaluate all of his picks for yourself and see how they fit with your investment strategy. All those grannies that are losing money really aren't following his advice. (Obviously I'm a fan of his).
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#8
03-19-2007, 08:17 PM
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Re: Jim Cramer
Jason,
I find Cramer to be perhaps the most irritating finance commentator on TV. I don't follow him closely, but from what I've read in the past I'm under the impression that he has generally somewhat underperformed the market. I'm not sure that following guys like this broadcasting to huge audiences is ever a really great strategy.
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#9
03-19-2007, 08:19 PM
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Re: Jim Cramer
He used to run a very successful hedge fund. He is very rich and started out poor. So he must have done something right. However, I think the TV show should be treated just like any other TV show... entertainment.
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#10
03-19-2007, 08:25 PM
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Re: Jim Cramer
He supposedly returned 24% net of fees!!! per year at his hedge fund over a 12 year period. He ran about 300 million, and those returns were probably jacked up by his huge allotment of IPO's which worked well back wehn he ran that money. This puts him in the league of Warren Buffet but who knows what his real returns were.
I think his show is obviously hammed up for TV but there is no question the guy is very smart and more inmportantly a good "street" trader
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