Jim Cramer Investment Club: We established the investing club in order to assist all investors in accumulating long-term wealth in the market. In the coming weeks, we will begin sending frequent emails to you, informing you of what I am seeing in the market and allowing you to make informed choices about your investment portfolio. To become a member of the CNBC Investing Club, fill out this form.
Through the investing club, you will also get access to the active fund I manage, as well as my charity trust portfolio, which presently consists of 34 individual equities. It is my policy to notify you in advance of any purchases or sales I intend to make so that you have enough opportunity to act before I do.
On February 10, 1955, James Joseph Cramer was born in New York City, where he now serves as host of the Mad Money show on CNBC. A former hedge fund manager, he is also an author and co-founder of TheStreet.com, which he co-founded in 2005. He grew up in the Pennsylvania town of Wyndmoor.
My aim is to assist investors in becoming more educated, and I see each investing choice as a learning opportunity. The trust is comprised of a list of suggested equities, and I have promised to be completely open and honest about every decision I make in the future. I don’t pick and choose the victories I want to celebrate. When an investment does not perform as expected, you will be notified.
Cramer says that the performance of his “Action Alerts PLUS” charity trust outperformed the performance of the S&P 500 Index and the Russell 2000 Index from 2002 and May 2009. During the same period, the charity trust earned a return of 31.75 percent, while the S&P 500 had an 18.75 percent return and the Russell 2000 earned a return of 22.51 percent.
Over the course of the year, the trust beat the S&P 500 by 7.35 percent and the Russell 2000 Index by 3.33 percent, respectively. Paul Bolster argues that one of the reasons Cramer outperforms the market is because he takes on too much risk in his stock selections. According to Bolster, “if we account for his market risk, we come up with an excess return that is basically zero,” meaning his profits are approximately equal to the risk he is putting on.
We want to create one of the best investment tools in the world in the next year, and I’m delighted that you will be a part of it. Please send us an email at [email protected] with any suggestions you have for how we may provide a better service to our readers.
Thank you for joining up as a club member; I look forward to assisting you in making more informed investment decisions and building wealth more slowly.
On March 5, 2009, Cramer sent a letter to the White House in which he said, “Is there a backup plan? Look at the incredible decline in the stock market, across all indices, since the inauguration of the president, with the decline accelerating when the budget plan was released as a result of the massive fear and indecision sowed by the document: raising taxes on the eve of what could be a second Great Depression, destroying the profits of healthcare companies, tinkering with the mortgage deduction at a time when U.S. house price depreciation is at the root of much of the world.