The Best One Yet

📈 Jim Cramer: Why You Should Never Buy "Normal" Stocks

19 snips
Nov 26, 2025
Jim Cramer, a renowned investment commentator and host of CNBC's Mad Money, challenges the conventional wisdom of investing. He warns against 'normal stocks' like banks and airlines, calling them dangerous. Instead, he advocates for a mix of active picks and index funds with his '50/50 Rule.' Cramer shares how everyday observations can generate investment ideas and recounts finding Nvidia at just $2.00, emphasizing the power of conviction in investing. With a routine that starts at 3:45 AM, he's all about serious stock-picking strategies!
Ask episode
AI Snips
Chapters
Books
Transcript
Episode notes
ADVICE

Only Actively Invest If You Enjoy It

  • If you don't enjoy investing, use index funds and don't force active stock picking.
  • Only do individual stock work if you have interest and willingness to do the homework.
ADVICE

Split Portfolio: 50/50 Index And Picks

  • Put 50% of your investable money into the S&P 500 as a default foundation.
  • Use the other 50% to research and buy a handful of stocks you can do homework on and hold long-term.
ADVICE

Do The Financial Homework

  • Learn to read balance sheets, income statements and conference call transcripts before buying individual stocks.
  • Do the homework quarterly so you can confidently buy and hold instead of trading.
Get the Snipd Podcast app to discover more snips from this episode
Get the app