James J. Cramer is the king of financial media: he is currently the host of CNBC's "Mad Money with Jim Cramer." At "New York "magazine he writes the "Bottom Line" column. He" "is markets commentator for CNBC and for the website he co- founded, TheStreet.com.
After telling the story of his own trading days in Confessions of a Street Addict, Cramer appeases fans hoping for advice on how to duplicate his success with their own investment portfolios. But not without some strong caveats: his approach requires devoting at least an hour a week to educating yourself about each stock you own. But since most pros are "rank amateurs themselves," anyone willing to do the work should consider getting in. Cramer breaks down the fundamentals of his investment approach, built on the twin principles of diversification and speculation: while most of your portfolio should contain reliables like oil, financials and blue-chip companies, 20% percent of your money should go toward a slightly riskier bet on a company's future ("owning a stock is a bet on the future, not the past"). He also explains techniques for figuring out when to buy rock bottom stocks and sell the ones that have hit their peaks. Cramer drills his main points over and over, which can get repetitive on the anecdotal level but reinforces the simplicity of his message: investing is for anybody willing to put the time into learning how to do it right. His enthusiasm should prove inspiring, and even investors on the wrong side of Wall Street's recent shakeups may find the courage to get back in the game. Either way, Cramer's radio, TV and print platforms are sure to make this one another hit. Agent, Suzanne Gluck at William Morris. (Apr. 5) Copyright 2005 Reed Business Information.
Financial commentator, former hedge fund manager, and founder of TheStreet.com, Cramer has written a book that in some ways is a sequel to his autobiographical Confessions of a Street Addict. Unlike his previous book, this one divulges many of Cramer's trading secrets, outlining an investing methodology that has made him millions. The first and perhaps most important step, he advises, is for investors to do their homework. He recommends stocks primarily because "over the long term, we know stocks outperform all asset classes." Avoiding the larger, better-known companies, he looks for underperforming and undervalued stocks with potential, referring to them as fixer-uppers. While very much an investing primer, this book offers valuable insights into the capital structure of companies with a level-headed analysis of how the IPO process is supposed to work but rarely does. As he constantly reminds readers, in order to make money in the stock market one must "stay in the game," and at that Cramer has proven to be a master. He's also an engaging writer. Rich with practical examples and intelligent guidelines (e.g., "25 Investment Rules To Live By"), his book is designed to make readers smarter about investing, empowering them to create more wealth for themselves. Recommended for larger public libraries and investment collections.-Richard Drezen, Washington Post /NYC Bureau Copyright 2005 Reed Business Information.