Jim Cramer of thestreet.com is a strong believer in the stock market and also believes that individual investors can make huge amount of profit by investing wisely and picking the right types of stocks. Stock picking is not a simple task because it involves a lot of analysis and research to be able to ascertain which stocks are more profitable for your portfolio. Jim Cramer, a confirmed multi-millionaire, gained his wealth through successful stock picking. He is currently working for CNBC and believes that individuals need to be very cautious when holding long positions because the market might swing against their favor when they don’t expect. In his CNBC program, Mad money, he advises that investors should try not to hold positions for more than 5 years. He advices them to get rich through stock picking but to do it carefully.
He opined that the market has eaten up most small investors but insists that these small investors can still rise up to the challenge and beat the averages. This will be very possible if they follow the recommendations he makes on “Get Rich Carefully”, his most recent book. He advises investors to pick their stocks very carefully in order not to get ripped off in this turbulent financial era.
Cramer has recommended water stocks and he thinks they should be in your portfolio.
About Jim Cramer
Cramer began investing in the stock market when he was still in Law School. He started gaining reputation by opting to leave stock picks on his answering machine. This impressed Martin Peretz, the New Republic Owner, and he gave him half a million dollars to invest. In two years Cramer had already earned $150,000 for Peretz.
He became a stockbroker in 1984 and his success in the company encouraged him to fund his own hedge fund in 1987. Some of the early investors in Cramer Inc. include Peretz, Brill, and Elio Spitzer, former Governor of New York.
From 1988 to 2000 during the fund’s tenure, he recorded only one negative return in 1998. In 1999, he gained a whopping 47% in returns surpassing S&P 500 by more than 35%. In 2001, he retired from the hedge fund after averaging a 24% and $10 million yearly return over 14 years. He has left the management of the fund to Jeff Berkowitz, who was his former partner. Cramer was not only an investor. He has interest in journalism which was portrayed by his role as the “chief editor” of Smart Money magazine. He now works with CNBC and is not allowed to trade stocks from his own personal account.