Last updated: 15 November 2016
He claimed to have made a fortune on Wall Street as a hedge fund operator many years ago. I say “he claimed” because nobody has ever seen proof. His returns were self reported, and never audited by an independent body. He also admitted to using manipulative and deceptive techniques to gain an advantage to produce his supposed market beating returns.
Nowadays he owns a financial website, TheStreet.com, runs a stock newsletter called Action Alerts Plus and hosts his own TV show (amongst other things).
Some find him entertaining, I say he is a jerk. He uses his “celebrity” status in the investing world to manipulate stock prices through his various media outlets. You only have to look at some of TheStreet.com’s analyst ratings recently and the subsequent share price performance of the stocks they have rated for proof.
Update: 7/10/14: Cramer Does it Again
Today we saw GT Advanced Technologies (GTAT) fall almost 93% from around $11 all the way down to $0.80 – and guess who recommended GTAT a BUY???
You got it, good ol’ Cramer.
In the pre-market show on CBNC 8/26/14, Cramer recommended GTAT a buy at $18.88. So the total decline in GTAT from his alert price? It will likely be 100% as the company just filed for bankruptcy after AAPL announced it wouldn’t be doing business with them any longer.
Cramer will forever be known as the buffoon who, on several Mad Money episodes, loudly pronounced that Lehman Brothers was a safe investment. Cramer first recommended Lehman on 17 October 2005 at $55.18 per share. On 5 September 2008 when the stock was at $16 per share, Cramer told his audience that Lehman Brothers was a “screaming buy” and said things couldn’t get any worse. Lehman subsequently went bankrupt and the stock is now trading at $0.02 per share.
I remember these days fondly, when I unsuccessfully invested in large cap stocks.
Well, long story short, Cramer told his audience on a Mad Money episode that American International Group (AIG) would go bankrupt very soon and should be short sold. The stock was trading at around $12. I took his advice and shorted AIG (my first ever short). In the subsequent weeks, AIG proceeded to spike to over $40 a share. Fortunately I took my loss well before this time, but it was a valuable lesson for me.
I could go on and on. His recommendations in other banks such as Bear Sterns, Goldman Sachs and Merrill Lynch etc were just as bad.
The silver lining for me was that I starting trading more and more in penny stocks. As my experience and knowledge grew, my profits also grew… substantially.
So if you are like me, and have lost money following Cramer’s picks (or are one of the lucky ones that haven’t yet followed him), you have come to the right place. Our penny stock newsletter publishes the best penny stock list which annihilates Cramer’s picks hands down.
In fact, we get hundreds of ex-Jim Cramer Action Alerts Plus / Mad Money followers sign up for our free newsletter every month. If I could only publish some of the horror stories they have told me… It really does make a grown man cry.