Don’t Listen To Jim Cramer On This!

don't listen to jim cramer

Every now and then I watch “Mad Money” with Jim Cramer on CNBC.  Since I don’t watch much TV, financial programming is pretty much what I gravitate to.

Now, Jim Cramer has helped many people – and still does every day.  His show has been wildly successful over the last 14 years.  He is very wise regarding the stock market.  I am quite often in agreement with him.

However…he sometimes gives advice that makes me cringe in my chair.

The piece of advice I want to address today is the idea of selling your original investment once you’re up 100 percent.

For example, let’s say you invested $1000 in a stock, the price doubles, and your investment grows to $2000.  He’s saying that you should sell $1000 worth and let the rest ride.

Here’s the problem I have with that.  Suppose you invested in Amazon, Netflix, Booking Holdings, Home Depot, or Walmart.  Had you done what Cramer suggested, you would have left hundreds of thousands – in some cases millions – on the table.

Yes, from a $1000 investment you could have left a great deal of money on the table over a lifetime!

If you’re fortunate enough to buy a stock, and the price doubles, please hold on!  

We measure investment success in percentages gained over a period of decades.

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click here to be taken to its Amazon page.

(Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

 

 

 

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