Stock Investment Advice
Jim Cramer’s Investment Advice
Stock Investment Advice. Here is the best stock market investment advice from Jim Cramer – 25 Investment Tips from his excellent book “Real Money”.
Investment Tips 1
1. Bulls and bears make money: pigs get slaughtered.
Investment Tips 2
2. It’s okay to pay the taxes
Investment Tips 3
3. Don’t buy all at once; arrogance is a sin.
Investment Tips 4
4. Look for broken stocks, not broken companies.
Investment Tips 5
5. Diversification is the only free lunch
Investment Tips 6
6. Buy and homework, not buy and hold.
Investment Tips 7
7. No one ever made a dime by panicking.
Investment Tips 8
8. Own the best of breed: it is worth it – the bigger bargains tend to be the best of breed
Investment Tips 9
9. He who defends everything defends nothing; discipline trumps conviction.
Investment Tips 10
10. The fundamentals must be good in takeovers.
Investment Tips 11
11. Don’t own too many stocks.
Investment Tips 12
12. Cash and sitting on the sidelines are fine alternatives.
Investment Tips 13
13. No woulda shoulda coulda (Do NOT second guess!)
Investment Tips 14
14. Expect corrections; don’t be afraid of them.
Investment Tips 15
15. Don’t forget bonds – stocks and bonds are always in deep rivalry; bonds are especially competitive when interest rates are high, as bonds such as US treasuries are risk-free. Stocks and bonds tend to have inverse relationships. When the 2000-2003 bear market began, the Fed had interest rates as high as 6.5 percent.
Investment Tips 16
16. Never subsidize losers with winners – Do NOT sell your best stocks so you can hold on to your worst stocks.
Investment Tips 17
17. Hope is not a part of the equation – Never buy and pray
Investment Tips 18
18. Be flexible
Investment Tips 19
19. When high-level people quit a company, something is wrong – Do not own a stock when a CEO or CFO leaves suddenly.
Investment Tips 20
20. Patience is a virtue – giving up on value is a sin. Though stocks might do nothing for quite some time, have faith in your stocks as long as you bought them fully believing that they were good value.
Investment Tips 21
21. Just because someone says it on TV doesn’t make it so.
Investment Tips 22
22. Always wait thirty days after an earnings preannouncement before you buy.
Investment Tips 23
23. Never underestimate the Wall Street promotion machine
Investment Tips 24
24. Be able to explain your stock picks to someone else. – Be able to answer basic questions like: why do you think this stock will go up? Is this really the best time? Have we not already missed a lot of the action?
Investment Tips 25
25. There is always a bull market somewhere. Keep looking – do not be averse to looking towards new markets and checking things out. In the 2000-2003 bear market, the food and beer stocks outperformed tremendously.
Stock Investment Advice
Still, nothing can substitute for experience. Bear the stock investment advice here in mind when you make your next investment; treat them as precepts that you must never break, and soon you will start to make money on the stock market.