Action Alerts Plus portfolio manager and TheStreet's founder Jim Cramer has learned a lot over his 30+ years of investing. So he created a list of 25 Rules for Investing that can help you avoid the novice pitfalls that even he fell into on occasion.
Like giving up on a stock because it's not working at the moment.
Rule 20: Giving Up on Value Is a Sin
"Patience is a virtue - giving up on value is a sin," says Cramer.
I see so many people throwing in the towel on companies that have real assets and real worth just because they aren't working now and it angers me."
He recalls a interview he did with Apple's (APPL) CEO Tim Cook when his stock had fallen from $136 to $93.
Listen in to Rule #20 as he talks about why he held on.
Sign up and watch Jim Cramer's 25 Rules For Investing here!
And for more Investing Rules, watch these:
- Jim Cramer's Investing Rule 16: Never Subsidize Losers With Winners
- Jim Cramer's Investing Rule 15: Don't Forget About Bonds
- Jim Cramer's Investing Rule 14: Expect, Don't Fear Corrections
- Jim Cramer's Investing Rule 13: No Woulda, Shoulda, Couldas