Jim Cramer's stock picks trail market

[RunningBum]

Cramer Might not have declared bankruptcy. But he was homeless for a while. Jim Cramer Used To Live Out Of His Car - Business Insider

The "Mad Money" host hit rock bottom early in his career—at the time he was working as a journalist and making next to nothing. After a thief broke into his modest California apartment and stole absolutely everything, Cramer had nothing left and nowhere to go.
Cramer was living out of his car.
"I was living hand to mouth, and people would take me in now and then so I could get a shower, change, get a good night's sleep," he explained.

By that logic, going from homeless and dead broke to where he is now, worth somewhere between $50-100mil, perhaps he is worth listening to.

I don't use that logic myself. I never could stand listening to the guy for long, even when I was picking and trading individual stocks.

 

[Mulligan]

By that logic, going from homeless and dead broke to where he is now, worth somewhere between $50-100mil, perhaps he is worth listening to.

I don't use that logic myself. I never could stand listening to the guy for long, even when I was picking and trading individual stocks.

That was kind of what I was thinking. He did run a very successful hedge fund afterwards. It wasn't like he was broke in a car and made his fortune on money writing books. Like you I never have bought anything from a tip of his. But I enjoy his morning commentary occasionally.

 

[maloney50]

That was kind of what I was thinking. He did run a very successful hedge fund afterwards. It wasn't like he was broke in a car and made his fortune on money writing books. Like you I never have bought anything from a tip of his. But I enjoy his morning commentary occasionally.

How rich are the subscribers do his service? Where are all the customer yachts? Jim sells a service where he says you can beat the market yet he does not, you can listen and make your own mind up but warren Buffett has a quote you might consider, don't ask a barber if you need a haircut. I say don't take investing advice from a talk show host selling a stock subscription service.

 

[Mulligan]

How rich are the subscribers do his service? Where are all the customer yachts? Jim sells a service where he says you can beat the market yet he does not, you can listen and make your own mind up but warren Buffett has a quote you might consider, don't ask a barber if you need a haircut. I say don't take investing advice from a talk show host selling a stock subscription service.

I have no problem with what you are saying, and in fact I agree....However that isnt even NEAR the realm of my previous point. ...My point was in reference to someone being penniless after college and then making a fortune running a hedge fund that stomped the S&P for what a decade, is not the same as someone being penniless and then hawking his services with no proven record. Previous poster implied he was bankrupt and then made a dubious fortune. I dont think one can lump his Wall Street career in with the likes of Dave Ramsey.
As stated several times I dont need to make up my mind because there never was a reason too. His only purpose is modest entertainment for me. Now if I can have a time machine, I am all in with his hedge fund!

 

[alaska55]

Check your ego's in at the sign in, until very recently he was beating the S&P not counting divi's, Guess what he donates to charities so he doesn't reinvest divi's. There's so many smart people here, he even recommends to invest your retirement money in a 60/40 type fund. That's why its's called MAD MONEY.

And this statement right in the article

There are a number of factors at play in why Action Alerts Plus has underperformed the market, including most prominently the fact that the fund keeps a large cash position so that it can donate money to charity.

 

[karen1972]

First I've never understood if the Cramer doesn't beat the market crowd actually follows his advise or just the headlines.. ie if he recommends Apple on Thursday (do they buy on Thursday) or actually do what he says by listening to the earnings call the next Tuesday and if X happens then put 25% in and if Y happens wait for a pullback and then do Z.

Second, no money manager is right all the time, that's why he provides advise on what to look for and you then do your own homework...ie I like him because he repeats his theme, ie do your homework. He brings in CEOs and interviews them which I also enjoy. He talks about stocks I don't know about ..picked up IP that way. His am I diversified segment is old hat to most but it really got me thinking about my funds and made me be way more disciplined..which saved me a lot (having been way too leveraged in Telecom).

For me he's been a positive to my portfolio. I felt more confident picking up dividend stock during the last crash and they have really paid off, way more than the mutual funds. I'm about 2% better on individual stock picks than mutual funds over the last 7 years. Especially thanks to some winners like Altria (found during one of his rants about what to pick during recessions.. oh yes smoking and alcohol).

He's now the best, but he's not bad and worth a listen from time to time. I tend to tune him in most when the market takes a significant downturn and I can't figure out why..its always worth a second opinion.

 

[audreyh1]

One interesting thing Cramer occasionally mentions is that Steve Ballmer was his roommate in college. (Bill Gates second in command, long time Microsoft CEO)

Cramer is very emotional and his calls are super short term. So watching him for investment advice will make your head spin. He was dead right on the warning he gave the Fed in 2007. Was ridiculed at the time, but later vindicated. Unfortunately some other loudmouths tried to mimic that stunt.

He never declared bankruptcy as far as I know.

 

[alaska55]

Perhaps.

But one wonders why someone with that kind of talent would give up the chance to become a billionaire hedge fund manager to be a millionaire T.V. personality instead.

Because not everyone is greedy and the stress involved.

 

[NW-Bound]

I used to watch Cramer occasionally for entertainment. Never followed his recommendations, so would not know if it would work or not.

I have not had access to CNBC for a few years now. My TV has not been on for quite some time.

 

[Mulligan]

Because not everyone is greedy and the stress involved.

The pressure to perform had to be incredible. I equate what he did to what other championship coaches did...Got out and became a sports tv commentator; Jimmy Johnson, John Madden, Ara Parseghian, Bill Cowher, etc.. Same thing....

 

[ziggy29]

It's important to remember what he is and what he isn't. He is a media figure and an entertainer. He is a very short term trader (even more short term than a market timer). What he is *not* is a financial planner for the masses. Take it all with a grain of salt, and with that perspective.

He was dead right on the warning he gave the Fed in 2007. Was ridiculed at the time, but later vindicated.

Yeah, I remember that. But I also remember Elaine Garzarelli "calling" the crash of '87. And that elevated her to guruhood even though her long term record wasn't, and hasn't been, much better than a dartboard. Predict enough crises and eventually you will be right, and then their job is to remind you of the times they were right and get you to forget about the times they were wrong.

 

[alaska55]

Off topic a little ....

Not many of the financial heads out there made their money investing. Most made their cash by selling...investment books.

Suze Orman was bankrupt
Jim Cramer was bankrupt
Dave Ramsey was bankrupt
Kiyosaki's company went bankrupt

Does anyone REALLY trust these supposed gurus? There's something deeply unethical about bankruptcy in my mind. Kinda like a cheating spouse. Sure you can forgive but few can totally forget ...

First you say this

 

[alaska55]

To be fiscally completely irresponsible ...and to make a come back advising the rest of the world on money matters is fairly egregious.

Of course we also have politicians who go to jail and then return to office, we have sports figures who throw games /fights/deflate game balls/etc yet play on. And of course we have people who cheat on taxes and never get caught, default on mortgages yet continue to live in the home and even some who run with scissors and never trip or poke their eye out .

Gotta love the American way.

As a friend once said. If u ain't cheatin' then u ain't playin ...

And then say this without knowing the whole story. I would call that irresponsible. Why don't you buy the book and read it, Alot of people have money problems right out school. He came from a middle class family.

 

[papadad111]

Well... Believe what ever investing tips you want. Invest how you like. No irresponsibility. Dig a little deeper and most of their shine and glitter rubs off...

Just pointing out some truth - these famous book-selling charlatans of financial advice... Not just Cramer ...are mostly full of their own hot air.

I'd never trust a book salesman. ...That's what these bozos on tv are ....

Cramer may be a notch above the rest... He didn't go bankrupt. He Just lived out of his car for a while and had no money....

To his credit he gives to charity and he made a good call on the fed back in 08 when he about scared poor Erin Burnett to death on tv with his "they know nothing" speech.

Booya ski daddy.... Seriously ... Let's see the wins and losses of Cramerica ...

http://www.zerohedge.com/news/2015-...-money-objective-look-cramers-recommendations

"Currently Cramer has an F grade on PunditTracker.com. Let’s walk through how we arrive at that score...."

 

[audreyh1]

It's important to remember what he is and what he isn't. He is a media figure and an entertainer. He is a very short term trader (even more short term than a market timer). What he is *not* is a financial planner for the masses. Take it all with a grain of salt, and with that perspective.



Yeah, I remember that. But I also remember Elaine Garzarelli "calling" the crash of '87. And that elevated her to guruhood even though her long term record wasn't, and hasn't been, much better than a dartboard. Predict enough crises and eventually you will be right, and then their job is to remind you of the times they were right and get you to forget about the times they were wrong.

But he wasn't calling a simple market crash. He was telling the Fed that they were asleep at the wheel and not understanding how incredibly serious the situation was in terms of the financial system and that they needed to wake up and do something.

It's the only time I ever remember him predicting a financial crisis. He usually sticks to companies and stocks.

 

[alaska55]

papadad111
Well... Believe what ever investing tips you want. Invest how you like. No irresponsibility. Dig a little deeper and most of their shine and glitter rubs off...

Another statement that is flat out wrong! I never said I listen to his advice on the Mad Money show. I use mostly vanguard index etf's, and some perferred/baby bonds.

 

[alaska55]

papadad111 talking about buying lending club

Perhaps this crisis has created a unique value opportunity to jump in as others run for the exits. That's what Buffett would do...

I'd be interested to put in $10-25K from my gambling account which is now sitting in cash... Into some high quality 5 year loans that I can get on the cheap via secondary market.

Even a 7% yield seems like a good yield in today's interest rate environment.

To get 5 years at 12%? 14%? Wow.

Who can advise how to sign up and get a look at secondary offerings ?

Never done the P2P lending thing, although I stayed at a holiday inn once..


Sounds just like Cramer and no that not what Buffett would do. He lets things cool down digs deep before he even thinks about it

 

[rodi]

Alaska55. I've noticed you're c/p quotes. Please take a moment to look for the "quote" button. Using the quote button makes it easier for other readers to go back and read the quoted post - since it includes a link to the former post.

Large sections of bold give me (personally) a headache.

 

[papadad111]

papadad111
Well... Believe what ever investing tips you want. Invest how you like. No irresponsibility. Dig a little deeper and most of their shine and glitter rubs off...

Another statement that is flat out wrong! I never said I listen to his advice on the Mad Money show. I use mostly vanguard index etf's, and some perferred/baby bonds.

Eh? Don't take it personally Alaska55. I wasn't replying to you specifically. Nor am I interested in picking a fight with anyone today. To quote a favorite movie, lighten up, Francis

 

[papadad111]

http://m.huffpost.com/us/entry/10209654.html

An update to Cramerica's performance in stock picking ... published a few weeks ago:

"Yet another peer-reviewed article has assessed the stock-picking ability of Mad Money’s Jim Cramer and found it lacking. The paper was co-authored by an MBA candidate and a Ph.D. candidate in statistics at the prestigious Wharton School of the University of Pennsylvania. They studied the complete historical performance of Cramer’s Action Alerts PLUS portfolio from 2001 to 2016, which reflects many of the stock recommendations made on his Mad Money television program.

According to an article commenting on the study in Kiplinger’s (aptly headlined “Jim Cramer’s Stock Picks Stink”), from Aug. 1, 2001 through March 31, 2016, Cramer’s Action Alerts PLUS portfolio returned a cumulative 64.5 percent, compared with 126.1 percent for the S&P 500 index, including dividends. Cramer’s portfolio was also about 5 percent more volatile than the S&P 500.

Subscribers are promised access to Cramer’s personal charitable trust portfolio and to email alerts that notify them of recommended stock moves before he acts.

Here is the published paper: http://static1.squarespace.com/stat...+Trust+Performance+and+Factor+Attribution.pdf

 

[dallas27]

So a wharton mba+phd = common sense?


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[Gumby]

So a wharton mba+phd = common sense?


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Wharton MBA + PhD neither confirms nor precludes common sense.

 

[HFWR]

I find Cramer to be mostly annoying, accuracy, or lack of same, notwithstanding.

However, what Cramer, and CNBC in general, advocates, i.e. that one should/can buy/sell the right stocks at the right time, and achieve outsized gains, is not the business I'm in with regard to investing.

 

[thepalmersinking]

I find Cramer to be mostly annoying, accuracy, or lack of same, notwithstanding.

However, what Cramer, and CNBC in general, advocates, i.e. that one should/can buy/sell the right stocks at the right time, and achieve outsized gains, is not the business I'm in with regard to investing.

All I do is lose with Cramer



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