Editor's note: This recap last aired on July 9, 2010. NEW YORK ( TheStreet) -- "Being a long-term investor is no excuse for not following the rules," Jim Cramer told the viewers of his "Mad Money" TV show, as a he took a break from the daily market action to dispel the myths of the so-called "buy and hold" investment strategy. Cramer said, of course, making money long term is the ultimate goal, but sadly it's also become the ultimate excuse for short-term losses. He said that far too often investors ignore short-term pain under the delusion that they're "in it for the long term." "Losses are losses, realized or otherwise," Cramer told viewers. Being a "long term" investor doesn't justify owning damaged goods, he said, just ask those who owned shares in the former General Motors. Being a long-term investor does not mean buy and forget. So what is long-term investing all about? Cramer said in a word, homework. He said investors need to read the quarterly reports, read the SEC filings and listen to a company's conference calls. Investing for the long term, he said, is not a license to not pay attention. Investors also need to stick with high-paying dividend stocks, he said, because those companies, compounded over time, yield the highest results. If the financial panic has taught us anything, said Cramer, it's that the buy and hold philosophy is dead. The banks will take your money, he said, even if it was made from a short-term trade. > > Bull or Bear? Vote in Our Poll
"Never plan on owning a stock forever," Cramer told viewers. He said as sectors come in and out of fashion, investors need to be looking for overarching themes, multi-year secular growth trends that rise above the daily market action. One of those themes, he said, is the mobile Internet tsunami, or smart phone revolution. Cramer said the mobile Internet revolution will be bigger than the PC revolution in the '80s and bigger than the Internet revolution in the '90s. He said investors must own mobile Internet stocks, because trends like these only come about two or three times a generation.