Gecco Wrote: ------------------------------------------------------- > mile wide, inch deep. How can he possibly have an > informed opinion about so many stocks across every > industry. > Exactly. He can’t.
Maybe he has a fleet of analysts providing briefs on pre-screened questions. It wouldn’t be the first tv show to do that.
you cant argue with his track record at his hedge fund, i believe he averaged over 20% net a year for like 13 years. he is great for ideas but as always due your own DD
In my opinion, if that’s value investing is your strategy, Jim Cramer is a distractor. If you want to find stocks that don’t have a lot of analyst coverage, looking to Cramer’s show for advice doesn’t help. Like a large percentage of the Street, it’s tough for Cramer to discover relevant information about certain companies ahead of people who work specifically in the industry of that company. Example: I work for a large Canadian oil and gas E&P and Jim Cramer presented information on his show which he thought was new and amazing on this company. The fact was this information he presented was more than two years old (and priced into the stock price already). To at least try to be ahead of the curve, I find better use of my spend time browsing stock screens and conversing with people who might know about companies I target (hopefully they work in that industry that the target company operates in). While I am still a beginner, I should also note that I tend to look at macroeconomics second when I am assessing a company for investment. I get this macroeconomic information through various investment bank reports from economists (which always have conflicting view points), it is much more thorough and comprehensive than his show. Read the classic “One up on Wall Street” by Peter Lynch for more about this strategy.
i dislike cramer but in fairness, didn’t he technically say you could keep your money at bear i.e. brokerage account (which i presume remained whole)… but his screaming and lack of specifics are frustrating… very reasonable to suggest that his bear comment meant that you didn’t need to worry about stock. “bear is fine” anyway here it is… you be the judge http://www.youtube.com/watch?v=gUkbdjetlY8
I have just forwarded this thread to CFAI as further evidence as to why they should cease offering the exams to new candidates. There’s really just not very many good ones left.
I think Cramer is good too. He was very successful as a banker at goldman…His business cycles model was used as testing material in my Investments class back in undergrad. Sure he makes bad picks sometimes but look at some of the great ones he made, GOOG in particular. People made millions off that call