Cramer Slams WSJ Columinst Jason Zweig
“It’s time to unlearn a common myth about investing,” Jim Cramer told fans of his “Mad Money” TV show Monday. “The best way to invest is not to buy a bunch of stocks and just sit on them,” he said. Cramer explained the view that trading frequently costs too much is just false. He said commission have been very cheap for years and the taxes on gains is a good thing because it means you made money. Cramer criticized Wall Street Journal columnist Jason Zweig after he wrote an article this weekend that said buy and hold is solid investment strategy and took a shot at TV pundits who recommend trading in and out of stocks. Cramer explained that his strategy is to buy and do homework, not buy and hold. He reminded investors that buy and holders got slaughtered during the dot-com bust. Cramer took even more issue with Zweig’s statement that buying stocks down 50% is a good investment. He pointed out that investors who bought into National City (NCC), Washington Mutual (WM), General Motors (GM) Fannie Mae (FNM) and Freddie Mac (FRE) after they dropped 50% are now down even more. Cramer said that savvy investor should do one hour per week of homework on any stock they invest in - if they don’t have time than they should hand it off to a professional, and do their homework on the guy in running the fund. He told investors to remain involved in their portfolios. “The results are completely worth the effort,” he said. BioSolar (BSRC) could be the boost your portfolio is looking for! This emerging green solar producer is poised for huge gains in 2008. Read the free research report today
July 15th, 2008 at 2:16 pm
I guess Jimmy Boy is still stung by the commentary Zweig wrote for the ‘03 version of “The Intelligent Investor”, you know the one where Cramer is taken to task for his “winners of the new world” and his statement on how “if we used any of what Graham and Dodd teach us, we wouldn’t have a dime under management.”
And talk about revisionist history, Cramer should ghost write Bush’s auto-biography. If you had invested with the value practice that Zweig, Graham and Buffet expose, YOU WOULD HAVE NOT BEEN IN THE TECH BUBBLE!! You would have seen it for the overpriced garbage it was and stayed away from it. Ironically, Cramer WAS PUSHING EVERYONE INTO IT only to have all his precious “Cramericans” financially slaughtered.
In short, he completely distorts what the article was about and then picks a handful of horrible finance companies to try to prove his “point” that everyone should be like him (i.e. just invest on momentum and tell all the fools watching to buy whatever was already up last week or month, or say to them “I know the market is overvalued but everyone should keep buying and accept that it will keep going up” at the peak last October.)
Cramer is a clown and the cramericans who listens to his “buy and homework” are amatuer kids in the investing world.