NEW YORK (TheStreet) -- Fellow TheStreet contributor Richard Saintvilus knows I love him. That's why I can refer to something he says as "dumb" without fear of violence.
I hope that you -- yes you -- feel the same way. Like we're in a bar talking trash about sports, the opposite sex and money. No matter what, we leave it all on the ice.
With that, Saintvilus kicks off my list of five dumb things that investors incessantly repeat.
1. "So-and-so should buy so-and-so."
I am a recovering buyout-rumor-aholic. That makes me want to stage an intervention when I see somebody I care about go down a similar path.During the month of August, Saintvilus suggested that Dell (DELL) or Facebook (FB) should buy Research in Motion (RIMM). In Dell Should Buy RIM or Die and Why Now is the Time for Facebook to Buy RIM, Saintvilus offers similar reasons why Dell or Facebook should scrape RIM's dead and cold corpse off of a Canadian curbside. Simply put, he thinks RIM could give these companies the mobile presence (Dell) or push (Facebook) they apparently need. Just because something is cheap doesn't make it inexpensive. One hurting company -- Dell more so than Facebook -- plus another hurting company does not equal a resurgence. It equals two hurting companies. A more-than-logical strategic connection between companies must exist to keep M&A speculation sane. Generally speaking, it makes more sense to speculate about two strong companies hooking up than it does one strong and one weak or two weak. For example, I expect Viacom (VIAB) to search for M&A. It makes sense for another media conglomerate to listen. Disney (DIS) or Time Warner (TWX) could fill Viacom's holes, such as an absence of sports programming, while Viacom compliments Disney's existing kid properties or Time Warner's male-skewing properties.
2. "I'm going to all cash."Here's what bugs me: Unless you are my grandfather's age, stop sounding like my grandfather. There's one reason, maybe two, for going all cash. One, you need some money within the next two years -- or possibly five to seven years if retirement is approaching -- and, two, being in stocks fuels an unhealthy amount of anxiety.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV