Sunday, November 05, 2006

Book: Jim Cramer's Real Money

I recently finished (1 day past October's National Book Month) the audiobook version of Jim Cramer's Real Money. It's narrated by Jim, so it's a fun listen. It scores 4 (of 5) stars from 176 Amazon reviewers. Jim Cramer is a co-founder of TheStreet.com, host of the CNBC TV show Mad Money, host of the daily radio show Real Money, co-host of the former CNBC show Kudlow & Cramer, a successful trader, and a former top-ranked hedge fund manager.

From the Booklist review on Amazon: "...Here Cramer reveals how he made his money and distills his methods so that the average reader can understand them. Rather than catering to the Wall Street party line of "buy and hold" investing, he is an advocate of "buy and homework." He recommends starting with just four stocks in safe, diverse sectors and devoting a minimum of one hour per week of study to each company. Although others condemn speculation as pure gambling, Cramer insists that the fifth part of your portfolio should be devoted to a purely speculative play to take advantage of potential "home runs"..."

I've read many investing books, and I recommend this one for everyone who wants to buy individual stocks. It contains many of the same precepts as the traditional dogma, such as the importance of diversification and not spreading your investments too thin. I like his recurrent views of (a) embracing some speculation and (b) not buying and simply holding. If you enjoy his TV or radio shows, then you'll surely enjoy listening to this audiobook. Might be just right for an upcoming airline flight.

1 comment:

Michael said...

Update: Please don't take this review as an endorsement for Jim's stock picks. Never blindly invest in stocks recommended by others. Always do your own homework. If you're interested, Jim's track record is monitored by others and it's easy to dig up info on that. Here's the Motley Fool's CAPS page for tracking Jim Cramer.