Smarter Money
Editor's note: Jim Cramer's new book, Real Money: Sane Investing in an Insane World, is available in selected bookstores now. As a special bonus to RealMoney readers, we will be running Cramer's "Twenty-Five Rules of Investing." For more about the new book and to order it, click here. Today, we present Cramer's twenty-fifth, and final, rule of investing. Read more about his rules:
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Pigs Get Slaughtered
It's OK to Pay the Taxes
Don't Buy All at Once
Buy Damaged Stocks
Diversify to Control Risk
Do Your Homework
Don't Panic
Buy Best-of-Breed
Defend Some Stocks
Don't Bet on Bad Stocks
Don't Own Too Many Names
Cash Is for Winners
No Woulda, Shoulda, Couldas
Expect Corrections
Watch Bonds
Don't Subsidize Losers
Check Hope at the Door
Be Flexible
Quit When Execs Do
Patience Is a Virtue
Be a TV Critic
When to Wait 30 Days
Beware Stock Hype
Explain Your Picks
I like to end every television and radio show I have with this signoff: "There is always a bull market somewhere, and I will try to find it for you." I say that because it's true. Something is always working! Maybe it's gold, so you buy best-of-breed Newmont Mining(NEM - Cramer's Take - Stockpickr). Maybe it's oil, so you buy some Halliburton(HAL - Cramer's Take - Stockpickr). Maybe it's the chemical complex, so you pick up some Dow Chemical(DOW - Cramer's Take - Stockpickr). I've seen moments where the only stocks in bull mode were in your supermarket or your medicine chest, stocks like Anheuser-Busch(BUD - Cramer's Take - Stockpickr) and PepsiCo(PEP - Cramer's Take - Stockpickr). Now, I know that might mean you have to do some trading. It might mean that you may have to look further and harder than your time and your inclination allow. That's OK, too. What matters is that you don't simply default to what's in bear mode because you are time-constrained or intellectually lazy. This is not just a criticism of do-it-yourselfers. Many professionals stuck with the PMC-Sierra(PMCS - Cramer's Take - Stockpickr)/Applied Micro Circuits(AMCC - Cramer's Take - Stockpickr) complex or the Novell(NOVL - Cramer's Take - Stockpickr)/Sun Microsystems(SUNW - Cramer's Take - Stockpickr) leg irons long after they should have. If they looked around, they might have spotted the bull market in oil, and bought something as simple as Exxon Mobil(XOM - Cramer's Take - Stockpickr) or as complex but rewarding as Ultra Pete(UPL - Cramer's Take - Stockpickr). Just remember:
There is always a bull market somewhere.I will always end my shows with this tag line because it is vital for me to get you to think more opportunistically than the average investor does. Oh, and by the way, it has the added advantage of being true. For 25 years there has always been a sector that works. You just have to find it. I know it, and I am honored if you will let me help you.
| 1. | Pigs Get Slaughtered | 2. | It's OK to Pay the Taxes | ||
| 3. | Don't Buy All at Once | 4. | Buy Damaged Stocks | ||
| 5. | Diversify to Control Risk | 6. | Do Your Homework | ||
| 7. | Don't Panic | 8. | Buy Best-of-Breed | ||
| 9. | Defend Some Stocks | 10. | Don't Bet on Bad Stocks | ||
| 11. | Own Fewer Names | 12. | Cash Is for Winners | ||
| 13. | No Regrets | 14. | Expect Corrections | ||
| 15. | Know Bonds | 16. | Don't Subsidize Losers | ||
| 17. | No Room for Hope | 18. | Be Flexible | ||
| 19. | Quit When Execs Do | 20. | Patience Is a Virtue | ||
| 21. | Be a TV Critic | 22. | When to Wait 30 Days | ||
| 23. | Beware the Hype | 24. | Explain Your Picks | ||
| 25. | Find the Bull Market | ||||
| Check back for more of Cramer's Rules | |||||
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