Investment Nuggets

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Mr Jim Cramer.
Mr Jim Cramer.

The story of investment author and former journalist Jim Cramer is not just another ‘rags to riches’ journey. The magna-cum-laude graduate from Harvard College, after being rejected by the Southern District of New York to work as a prosecutor, went to work in Goldman Sachs’ Sales and Trading department. The law graduate who was denied service because his grades were not enough, turned out to become an unbelievably successful stockbroker making close to $1 million that year. Cramer later founded his own hedge fund, Cramer & Co. He now has his own television show on CNBC, Mad Money with Jim Cramer, which features his rapid-fire opinions on stocks suggested by callers.

Here are a few of his honest and ‘controversial’ quotes on stocks and the market:

“You have a class of investors and you have a class of speculators. The speculators historically haven’t been big enough to cause the investors to doubt the long-term vision of stock.”

“There are tons of people who are late to trends by nature and adopt a trend after it is no longer in fashion. They exist in mutual funds. They exist in clothes. They exist in cars. They exist in lifestyles,” Cramer on market timing.

“Remember, I am neither a bear nor a bull, I am an agnostic opportunist. I want to make money short- and long-term. I want to find good situations and exploit them.”

“Every once in a while, the market does something so stupid it takes your breath away.”

“I was able to pick out the good stocks in the good market, but I have been blessed with a great market,” Cramer on market situations being of supreme importance.

“As long as you enjoy investing, you’ll be willing to do the homework and stay in the game.”

“Funny, but after trading for more than 15 years, I still am capable of forgetting a cardinal rule: The paper you own, in the end, will be intertwined with the fate of the 30-year bond.”

“Listen, forget the investors...Bernanke (Fed Chairman) needs to open the discount window. That’s how bad things are at the moment.”

“I have no objections to any boilerplate questions about the Fed and its rate cuts. They make sense. I do, however, occasionally want to suspend suspicion and cynicism and even, yes, scepticism, for the moment after something as monumental as yesterday’s half-point cut (by Fed). People want to know how the market will react, they want to know if it is time to buy, or too late to buy, or okay to buy, or good to sell. Those questions are obfuscators. They are theoretical. They get in the way of making money, and if answered incorrectly, they block the chance for making money," Cramer when quizzed about how the Fed cut has changed the market.

(This article was published in the Business Line print edition dated September 30, 2007)
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