Jim Cramer, the hyper television investing personality, is more than just an investor, he really is a performer. I’ve told clients and other investor to focus more on his ideas and how he arrives at his analysis than his actual performance. Why? Because that’s what he should be judged by — he’s made an entire generation of people excited about the stock market and empowered to do their own research.
If you are interested in researching Jim Cramer’s performance, here’s a list of resources that should help:
Who is Jim Cramer
Jim Cramer’s Books
JIM CRAMER’S GETTING BACK TO EVEN: Cramer offers the most detailed guidance he has ever given on how to invest in a changed market. Savvy investors will not just survive; they will thrive. Cramer begins with six rules for protecting the money you have and making sure that you have the money you need.
Confessions of a Street Addict: When I joined the hedge fund, this book was a must read for all new analysts. Great look at Cramer’s experiences and performance at his own hedge fund.
Stay Mad For Life – Get Rich, Stay Rich (make Your Kids Even Richer): A bit of a departure from previous books, in Stay Mad for Life, Cramer addresses broader issues of personal financial management that one deals with from cradle to grave.
Jim Cramer Online
The Street.com: Cramer is Chairman of the Board for TheStreet.com and one of the sites numerous investing personalities.
CNBC’s Mad Money: If you haven’t watched Mad Money, Cramer is at his best ranting and taking unscripted calls from the public. You can get a feel for his encyclopedic knowledge of the market, sectors and individual stocks.
CNBC Mad Money Stock Screener: You can drill down on Cramer’s picks on the show and see how they stack up.
Cramer’s Picks: Seeking Alpha: Seeking Alpha has a daily recap of Cramer’s stock picks.
Jim Cramer Performance
This article actually shows that investors would do better by shorting Cramer’s Mad Money Picks rather than going long them. See accompanying graphic.
Proof: Jim Cramer Isn’t a Lousy Stock Picker: From the Business Insider, this article reviews a recent academic study (mentioned below) that found: while Cramer may be entertaining and mesmerizing to many of his viewers, his aggregate or average stock recommendations are neither extraordinarily good nor unusually bad.
Bolster, Paul J. and Trahan, Emery A., Investing in Mad Money: Price and Style Effects (October 29, 2008): This is the paper referenced by The Business Insider entry above. The two Northeastern University academics do a really good job drilling-down into Cramer’s effect on stocks.
Engelberg, Joseph, Sasseville, Caroline and Williams, Jared, Market Madness? The Case of Mad Money (January 23, 2009): This more recent study showed that Jim Cramer influences market prices through his recommendations on the show Mad Money and that overnight returns following his recommendations are highest for small stocks, stocks with high idiosyncratic volatility, stocks recommended on days when wealthy viewer-
ship is high, stocks that have performed relatively poorly over the previous twelve months, stocks recommended on days when relatively few recommendations are issued, and stocks recommended during the discussion segment (as opposed to the lightning round).
Must See Jim Cramer Videos
Cramer’s famous “They know nothing” rant on the Federal Reserve.
Famous Jon Stewart – Jim Cramer feud.