Cramer's 'Mad Money' Recap: Know Your Guru

When he graduated from college, Cramer wanted to be a journalist, not a money manager, he said. In fact, his first investment, American Agronomics, was a "perfect failure," Cramer recalled. But instead of quitting, he kept investing and got better. By the time he went to law school, he was even leaving stock tips on his answering machine, he said.

Then he got lucky when The New Republic's editor-in-chief Marty Peretz, after hearing numerous stock tips over Cramer's answering machine, "dropped a check for half a million bucks in my lap and told me to invest it," Cramer said. "Luck got me into the game. Then luck made my hedge fund serious in 1987."

As a money manager, Cramer said, he was working 18-, sometimes 24-hour, days. "I didn't see my family, I weighed 30 pounds more than I weigh now, my blood pressure was a lot higher and I was never happy," he said.

When his family intervened in late 2000, Cramer decided to leave the fund. But as he still "loved stocks," he kept writing for TheStreet.com, which he co-founded. Plus, he started managing his Action Alerts PLUS charitable trust. Then, Cramer got the chance to do "Mad Money."

"I didn't stop running my hedge fund because I lost my game," he said. "I stopped because it was killing me. I'm not the kind of guy who can just scale back: it was either 18-hour days forever or retirement."

The Motivation Behind 'Mad Money'

People can "feel good" about listening to Cramer, he said, because he only has two motives: "I want to have fun, and I want to help you try and beat the market for the same reason."

"'Mad Money' is not a scam," Cramer said, adding that he can't profit from anything he says on the show -- only the viewers can.

At the same time, "Mad Money" isn't a way for anyone to get rich quick and it does not cater to a single audience, he said. As the show is for a diverse audience, Cramer's advice isn't always for everyone.

Moreover, people should not think they will become brilliant investors just by watching "Mad Money" every night, Cramer stressed. The only way to become a great investor, according to Cramer, is by doing your homework and "studying stocks with enough rigor and passion to get them right."