Quote:
|
Originally Posted by Blackthorn
Excellent point Voice.
I like the idea of this thread and it will be interesting to see how well Cramer actually performs.
|
Ahhh, but there is a built-in human error in this evaluation--this human. I put all those stocks in the fake mutual fund, but I did them at different levels based on the IBD ratings. For instance, if TOL was a 99 rated stock, I put $9900 in it. If LU was 42 rated, I bought $4200. Now, we'll be able to see the percentage run up for each of Cramer's picks, and I'll be able to see how well the top rated IBD stocks did, but when I say the account is up or down a percentage as a whole, those reading need to know what I did in weighting the stocks in the account.
Second, I'm leaving everything where it is until Cramer says "sell sell sell" or rings the register or whatever he does. He advises taking a little of the table at a time when a stock is going good, but I won't have time to tend this account daily as I'd like, so it's going to be pretty much a weekly reevaluation of what stays and what goes. Some nights, I'll try to have the laptop on while I watch the show (Lightning Round especially) and make changes immediately.
Quote:
|
On Cynthetiq's comment above I have to agree. Just because Cramer says it with conviction doesn't mean that anyone should not do their homework.
|
Cramer says the same thing. He tells folks all the time "don't buy just because I say it, do your homework." Naturally, that's the legal eagles telling him to do that, but . . .
Quote:
No one, Cramer included, can know the specifics on each company that he rates during his "lightning round" well enough to make the brash, off the cuff comments that he makes. In my opinion (so you know what that's worth  ) his advice and methodology is sound. He too is usually straight up when he makes a bad call which is refreshing.
|
It is amazing how much he knows about so many companies, even if it is just shallow knowledge. And yes, I've seen him say "I blew that one" when a stock went the other direction from what he said.
Quote:
|
Someone else said above that he's more entertainer than analyst which likens him in my mind to Rush Limbaugh.
|
Not a bad analogy, although I'm not sure I'd say either were MORE entertainer than analyst; I'd give equal weight to both portions of their knowledge and presentation.