Jim Cramer's Real Money: Sane Investing in an Insane World | James J. Cramer

Jim Cramer's Real Money: Sane Investing in an Insane World | James J. Cramer | A great insight into investing!

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Jim Cramer's Real ...

	Jim Cramer's Real Money: Sane Investing in an Insane World James J. Cramer Simon & Schuster, 2005 - 320 pages average customer review:based on 269 reviews view larger image
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highly recommended

Reliable advice in plain English

Most high profile investment "personalities" make me suspicious, so I watched Cramer's TV show for about three months before reading this book. Turns out he was right most of the time, both with his stock picks and his market insights. I found "Real Money" enormously helpful because it is enormously sensible. No magic formulas, no shortcuts, no tricks - just common sense, hard work, and discipline. Cramer explains the fundamentals of stocks and markets using simple analogies, which is helpful for people like me who do not have much experience or schooling in finance. In the final chapter, he even provides a crystal clear explanation of the highly complex world of call and put options.

This book is full of valuable ideas, which other reviewers have summarized very well. Here are a few of the points I found especially important.

1. Reading "Real Money" will make you a better investor OR a better client. Not everybody is ready, willing, and able to be an investor. But even if you turn your money over to professionals, you need to know the fundamentals or you could get hurt. A key general principle of investing!

2. Own retail companies before they saturate the market. Here's an example of a great tactical insight. Cramer notes that once retailers are in every market, they have a hard time sustaining growth. If you can catch one on the way up, however, it can be gold. Simple! Obvious! Never occurred to me!

3. When you buy is as important as what you buy. I never realized how important timing is. Cramer does a great job of explaining how business cycles work and what stocks are good buys or sells at a given point on the curve.

4. When you sell is as important as when you buy. I never realized how much science there was to timing a sell. But come to think of it, super gains can be wiped out in a flash if you stay in too long. That's why Cramer advocates "buy and homework" instead of "buy and hold".

Here are some things the book is not. "Real Money" is not a get rich quick scheme, nor does it claim to be. In fact, Cramer offers so many suggestions for further reading, I can't imagine how his guideline of one hour of research per week per stock could possibly be enough. The book is not entertainment - don't be fooled by Cramer's manic TV persona. The writing is straightforward and energetic, but not wild and crazy. And the book is not a total investing solution. Cramer is a very conservative investor who endlessly warns us NOT to apply his rules of investing to our retirement funds. This book is for discretionary investing.

The book is a great starting point. Cramer provides a framework for investing that will help you zero in on types of stock to look at, how to research them, how to buy them, and how to sell them. Now that I've read it, I can't believe I was rash enough to invest without it.

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A great insight into investing!

This book was very informational for someone that's interested in investing. Cramer covers what wall street looks for when it comes to investing i.e. earnings and multiples. Also he talks a lot about how his hedge fund made money along with his wife who he calls "the trading goddess." Of course you have to do your research and he stresses "buy and do homework" instead of "buy and hold."

Read REAL MONEY SO U CAN SUPPLEMENT YOUR INCOME

Jims REAL MONEY Sane Investing in an Insane world is a great book. As in any review there are pro's and Con's.....The Pro's are that there is invaluable advice that he offers, For instance he tells you to do you Homework 1 hour per week...This is extremely important as he says know your stocks and know why u bought them? This is because jim tells you to buy stocks depending on the federal reserve rates and GDP. He analyzes which stocks to own depending on where the federal interest rates are as described on page 115. He tells u to own secular stocks when interest rates are at its peak & own retail,banks etc when interest rates are low as to intice consumer spending. The Cons ARe that Jim explains how to evaluate P/E by his equation EXM=P...However he tries to explain the growth rate and a few other technical analysis with-out providing Elementary abc insights, where he uses his "wall-street Gibberish" For Instance He says Dont buy stocks with High Earnings Multiples But Jim Leaves this out,=(He explains that to get earnings you would need to divide the outstanding shares divided by the revenue, OK fine. What is ambiquous and missing is that as the price of the stock increases The multiple increases because as the earnings stays the same U are know dividing earnings into a bigger stock price so obviously the multiple will increase. He doe not explain that as new earnings are announced and the company reports larger earnings, that if the stock price is high and U are now dividing a larger earning into a high stock price that the earnings will decrease? Or that if the company reports smaller earnings than the previous quarter with a high stock price that the earnings will still increase due to dividing a high stock price into smaller earnings that would increase the multiple. There are some technical analysis that he could explain in simpler elementary examples. Also he does not explain in great detail the how to derive growth rate. Also everyone wonders if there is a conspiracy going on with him mentioning certain stocks to buy so his hedgefund buddies that are losing money would be able to recover by the majority buying into his stock picks on his tv show? BuY The Book Learn the fundamentals and U should gain some very inspiring knowledge on how to learn different approaches to picking stocks...

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Real Money

This book was highly educational. I felt that Jim Cramer truly wants the average joe to have a better life and make some money in the stock market.

reviews: 1, 2, 3, page 4, 5, 6, 7, 8, 9, 10, 11, 12, 13

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