Jim Cramer talks his new book, strategies for making money today and the growth stocks he’s betting on next.
Transcript:
Caroline Woods: Joining me now Jim Cramer, host of Mad Money and author of How to Make Money in Any Market, and also the co-founder of TheStreet. So a very important person to TheStreet’s legacy. Jim, Thank you so much for joining me at the desk.
Jim Cramer: Thank you for having me. It’s a joy to watch you on the floor, and it’s a joy to be back to something, of course, that feel very near and dear to.
Caroline Woods: We are so happy that you’re here to talk about this new book. I have to say, it’s your eighth book.
Jim Cramer: Yes, it is, but first in over a decade.
Caroline Woods: So tell us why now. What needs to be said that needed to take, what, 12 years to say?
Jim Cramer: Thank you. This is a book that reminds me of random walk or one up on Wall Street. It was meant to be a book, which just says that it’s written for my mom and dad, which is that people who my dad who bought hot tip stocks and lost everything, and my mom, who didn’t understand that a $50 stock isn’t necessarily better than a $25 stock. People don’t know enough to invest, and they’re scared. This answers that this book is for everybody, and it’s not for the trader. It is not for a person who’s just young. It’s not for just old. This is about the great $100 trillion transfer from baby boomers to younger people. And they need this book.
Caroline Woods: And in the book, you say, I’m going to help you get rich?
Jim Cramer: Yes
Caroline Woods: But you go against conventional financial advice and say you’re not going to get rich buying index funds, which is, what we hear Warren Buffett touting?
Jim Cramer: Oh, boy, you should have just bought Warren Buffett’s stock instead of buying the index fund. I find that he’s not hypocritical, but would have done better. I think 50% of your money should be in index funds, because I don’t think there’s anything wrong with them. But I think people have tremendous curiosity, and it’s never been easier to research a stock with ChatGPT and all the current documents. So why don’t you pick five stocks. And then I show you how to pick those five. I even give you some, although I say at the end that I wish I hadn’t done that. But I want people to be vested and invested, and the way to do that is to do homework. And I show you how to do it, even down to how to read a conference call. And then you add every single month to them $5, $10, $50. I lived. I put money in when I lived in the back of my car. I put money away every month and I ended up with $2 million.
Caroline Woods: Yeah no, it’s really impressive to the Magellan Fund and Contra fund by having a compound. Yeah the book was a good combination of some of your personal stories and how you got to where you are, but also a lot of tips on how to stock pick and how to do your homework. The title of the book is how to make money in any market. That’s because I want you to trust the market. But I’m curious about how you would describe the current market and how do you make money in this current market, given how much money has already been made?
Jim Cramer: OK it’s funny, I’m doing a piece right now about Micron, AMD, sandisk, Seagate and Western Digital. These stocks are up huge. And I say, look, if you just decided that the money’s been made you don’t recognize that these are cyclical businesses. I don’t tend I say don’t buy cyclical business. I will help people learn how to do it. Cyclical businesses work multiple years not multiple months. So when Micron gets on allocation and this is the first quarter of allocation, it may be allocation for several years. And that means that supply constraint means price increase. Price increase means beat earnings. Beat earnings means stock go higher. And that’s what’s happening.
Caroline Woods: What’s your advice for the next generation of investors? The most invested generation because they’re used to pretty lofty returns at this point. And they’re still seeing them right now.
Jim Cramer: Well I think they should find next generation should find three stocks companies that are very comfortable with that. They are let’s say I mean, right around here I see Apple, I see Yeti, I see television equipment, I see keyboards, I see PCs. Spot them. Yeah be curious then examine, you know. So observe and examine and then pick two specs.
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