You never know when things are going to bottom. In the last few weeks I have written that we bought more
Internet Capital Group
after some painful downturns. (We had held on throughout the ups and downs.)
Almost immediately I heard the e-catcalls. "There can be no bottom in Yahoo!," the wiseguys told me. And ICGE? Well, a lockup expiration there would play havoc with it for months.
Both stocks promptly bottomed.
Do you know when I bought more stock in both of these long-term winners? At the moment when I wanted to puke them up. The pain was so visceral that I could not imagine one more point down without the relief of making a sale.
That's when I pounced.
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What was evident from your emails is that there are few people out there who are tolerant of pain. I did not receive a single email from someone who agreed with me. (Just like yesterday when everyone told me
was headed much lower; I bet that bottomed today, too.)
Bottoms get formed in extreme pessimism. Never forget that. If you are at a point of maximum pain, try buying instead of selling. I bet it produces better results.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Internet Capital Group and Yahoo!. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at