Friday was a rebroadcast of an episode that originally aired on May 28, 2007.
Teaching viewers the way to extract the best from each segment was the basis for today’s show on Memorial Day. Jim told us that he is not a “genie in a bottle who can grant instant wealth” but also he is not a “sad clown who sips cheap scotch on his dirty linoleum floor either.” The show is about advice. While he is not a financial dictator he has a wealth of experience and he is not ashamed to say that he is great at picking stocks and understanding the market. Excluding the “Lightning Round” a dozen or so stocks may be recommended during the week but just going out and buying based on the recommendation is not supposed to be done. You can not expect to make money on every trade, he said “any decent money manger knows that you’re going to have some losers.” Running a diversified portfolio is necessary and you will surely see some losses if you run one the right way. First an investor who looks at a stock from Jim they must understand the rationale behind the buy call. A sector is usually talked about when a stock is recommended. When a single bigger stock is focused on, either something about the market in general or the market at a specific time is used to teach the lesson. If a secular stock is called a buy the lesson is to buy the cycle on these stocks. Further when a series on the show is done on specific stocks, the specific stocks are not the takeaway, instead the idea behind the series should be looked at. The point is it is always more that just a buy this or sell this proposition. Jim is criticized because of the advice given during the “Lightning Round” segment, with the thought by some that it is not “sound advice.” He feels it is, it just does not get as much respect as the stocks in the rest of the show because he does not spend 5 to 10 minutes on talking about the stock. The substance here mostly comes from views on the sectors, most of the time he will not like a stock because he does not like the sector. If he does like a stock it is also due to the sector or he will recommend a stock that is closer to best of breed. This segment was called a “valuable money making resource” if you “approach it with the thought of analyzing sectors.” Changing his mind often is to be expected due to the dynamic nature of the market. To rely on just five hours of TV a week to do your investing is a foolish thing to do. People have a certain responsibility to do homework themselves.
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