Pimco's Bill Gross: Jim Cramer Is 'Courageous' and 'Entertaining'

by: SA Editors September 05, 2008    
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From Pimco's Bill Gross, in his September 2008 'Investment Outlook':

When it comes to Cramer, you may be wondering why one would bother with a late afternoon “lightning round” conclusion to a busy investment day. Well, he’s entertaining, first of all, and I never get tired of the multiple “booyahs!” that listeners come up with. I find, though, that there are more than appetizers on Cramer’s menu. He has the instincts of a money manager (because he was one), but the unequivocating courage of convictions that not many of us have. To take on the Fed in the moment of the market’s deepest despair took guts. It would be like a passenger rushing from the dining room of the Titanic and heading straight for the bridge: “Get your hands off that wheel, Captain, there’s icebergs ahead!” Indeed there were. Yet aside from the entertainment and courage, there’s a commonsensical lesson plan that pops up almost every day. To be sure, the lightning round is intentionally prefab as opposed to lath and plaster, but interspersed and intertwined around all of it are entreaties to diversify and to be aware that markets don’t always go up... Cramer is a cat with one eye on the mouse hole and the other on a side door that just might usher in a roaring predator. If you can filter the schmaltz from the chicken you just might learn something. That’s what I tell myself, anyway, on many Monday – Friday afternoons. Booyah, Jim!

The reason I bring up Mr. Cramer and his ascension to at least a portion of the investment media throne is to discuss one of his oft-quoted phrases: “Remember, there’s always a bull market somewhere!” In its simplicity that’s hard to dispute.

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This article has 19 comments:

  •  
    Sep 05 08:16 AM
    Cramer is a self promoting lunatic.

    You're better off flipping a coin than taking his advise.
    Reply | Link to Comment
  •  
    Sep 05 08:16 AM
    The key word (somewhere) now tell me where and I would be a winner. Trying to find it for me, but yet not for sure always raises my eyebrow. I have seen way too many losers for that theory to be a sound principle for investing. Guessing is gambling and somewhere never seems to found or is somewhere else.
    Reply | Link to Comment
  •  
    Sep 05 08:32 AM
    I may be wrong, but I have noticed that Cramer says one thing about a particular company and after 2-3 days pass by, he will say something entirely different about the same company.
    The point is, folks, do your HOMEWORK.
    Reply | Link to Comment
  •  
    Sep 05 08:44 AM
    Mr Gross,
    Are you sure you want to promote Cramer. From what I have heard, Cramer should be fired and sent home. Go see Don Harrold at you tube for a few Jim Cramer inside looks.
    Reply | Link to Comment
  •  
    Sep 05 09:10 AM
    I LIKE FAST MONEY
    Reply | Link to Comment
  •  
    Sep 05 10:29 AM
    Do you realize that you've pretty much admitted that Cramer is not worth listening to for investment advice by saying that the reason to listen to Cramer is "entertainment&qu... Admit it, Cramer has done a poor job of predicting stocks over the last year.

    And, he is wrong about the Fed. They have done a good job of managing the economy in the last year. This financial meltdown could have led to a much worse problem with the economy. We have yet to have a negative GDP quarter though one or more are finally coming.

    And, I agree with D-D - Cramer changes his mind constantly on a stock. It's hard to take his advice. He often does too shallow of a job analyzing a stock and gets too focused on one part of a business. Then when news comes out about problems in another part of a company’s business and the stock drops, he will say something less than rosy about the stock – but it’s too late!
    Reply | Link to Comment
  •  
    Sep 05 10:35 AM
    No single person should ever be taken for your entire market strategy, but I find the usual piling on of Jim Cramer typical of people who actually never really watched his show for any extended period. Yes, he is wrong as often as he is right (few are better), but he does hammer home some sound advice which you could get elsewhere but which he, nonetheless, offers again: diversify and do your homework. The rest of his show is mostly to entertain. I agree with the above commenter that Fast Money is a better play because there are four different views expressed and at least another two guests to give you the broadest picture. I do find that I watch Fast Money nowadays more than I watch Cramer; but I got a sound footing with Cramer that I am glad to have, and for that I am grateful to him.
    Reply | Link to Comment
  •  
    Sep 05 10:59 AM
    Mr. Wynn:

    I watched Cramer for over a year, mostly for the entertainment, until it got old.

    I took his "advise" on a few stocks like Mercado Libre, Sigma Design, Riverbed Technology, EMC and some others which I care not to remember. All the stocks seriously tanked within a few weeks if not a few days. Fortunately, I did not "invest" a lot of money. Sure, some of his picks are good, but I don't think he's any better than the other CNBC talking head touters.

    The only real good advise he gives is to do the homework.
    Reply | Link to Comment
  •  
    Sep 05 11:53 AM
    Let's face it, nobody knows what the market will do in the next 10 minutes, much less the next 10 days. Did anyone predict the dramatic downturn in equities for Thursday & Friday of this week?

    I like the experts who predict that things will change "in the next quarter", "by the end of the year", or "sometime next year". I have never found them to be wrong. Sure enough, things did change.

    Anyway, it's a fun game and I enjoy it since I am fortunate enough to be retired since 1994, have a company pension, receive my Social Security check each month, was lucky enough to have bought rental properties in Las Vegas, Cape Cod, and Albuquerque in the early 2000's when prices and interest rates were low, and got out of the market at the end of 1999 after a very profitable 6 year span when all boats enjoyed a rising tide. A maximum investment in Gov't I Bonds in 2000 & 2001 was another lucky move.

    Notice my use of the words "fortunate" and "lucky" when referring to investments; the same words that contribute to one's wealth when in Las Vegas or Macau. No one knows the future track of their investments; least of all, the lamenting majority of 401(k) contributors who watch their shrinking monthly or quarterly statements and have about as much investment savvy as the deer in your headlights.
    Reply | Link to Comment
  •  
    Sep 05 11:53 AM
    I signed up with Cramer for 3 years, religously following his advice. In each of the three years I lost money and did wrose than if I had just invested in the S&P 500 index.I wouldn't touch his advice again.
    Reply | Link to Comment
  •  
    Sep 05 11:56 AM
    DO YOUR HOMEWORK and don't blame others. I saw a video on Cramer's predictions over an extended period and he contradicted himself so many times I lost count. What I have to say about Cramer is it doesn't matter how horribly he stuffs up, he always manages to tell you that he was right. Now if you believe that well you deserve everything you get.
    Take responsiblity in your life, don't blame others and you have taken the first step to success.
    Reply | Link to Comment
  •  
    Sep 05 12:03 PM
    Sorry. but I don't find useless stock advice entertaining. It's just "thought polution" for me.
    Reply | Link to Comment
  •  
    Sep 05 12:34 PM
    the best time to sell a stock is a week or 2 after he recommends it; ask anybody who bought horsehead, lundin mining, finisar blah blah blah...
    Reply | Link to Comment
  •  
    Sep 05 12:38 PM
    Road Runner, I agree Bernanke is the best Fed Chairman we have got for a very loooong time, 1000 times better than that idiot, greenpoo...

    As to Cramer... few are better than him, in terms of what he does.

    Tip: buy KOOL, the early CSCO in stem cell research and therapy, always do your DD before buy any stock.
    Reply | Link to Comment
  •  
    Sep 05 03:44 PM
    Cramer should be fired and sued,,,,,
    Reply | Link to Comment
  •  
    Sep 05 06:29 PM
    To all: Cramer is just another source of information. I take his advice in this regard - diversify, "do your homework", take profits, and don't fear the tax man.

    I have bought only one stock he recommended. Why? Because I did my homework and decided only one met my criteria and suited my situation. The others may have been good, short or long term, but didn't suit my situation, temperament, level of experience, ...

    If you lost based on his recommendattions, the onus is on you, not him.

    I've learned a *lot* (after all I'm new at this "gambling") - both what and not what to do.

    You're all grown ups, pay attention, take responsibility. Don't blame your failings on him. He's human like me, you, us. When he makes mistakes, I don't feel ill of him. When he changes his mind, it is either due to new data, a reconsideration of things he didn't properly consider, or ...

    So what?

    MHO
    Reply | Link to Comment
  •  
    Sep 05 09:22 PM
    gotta love bill's acronyms for "one that sticks his foot in his mouth time and time again for being wrong" as "courageous"... "to make a moronic fool of himself in doing the aforementioned" as entertaining...
    bill, i also echo your sentiments...
    Reply | Link to Comment
  •  
    Sep 07 02:08 PM
    Jim Cramer is a schmaltzy ,side show in a traveling carnival when it comes to investment advice.
    Everything he does or says should be taken as 90% entertainment,10% fact,(and that's being generous).

    The one and only time I did listern to Cramer was when he was touting an upcoming IPO, 'UnderArmour'.

    Having one toe in the sports field, I knew UnderArmour already had a big following with high school and college kids because it has a GREAT LOGO, which, as we all know, is a key component of any sportswear Companies success.

    Knowing they already had a solid foundation,with contracts in place with several big colleges, I told my broker to buy as much of the stock he could get his hands on.

    I knew it would be a good opening as the expected IPO price kept being readjusted upward in the days just prior to the IPO.

    Unfortunately ,he was only able to get me 300 shares. My IPO price was $13 and it doubled that 1st day of trading, closing at $26+.

    For that,I thank Mr. Cramer as I might never have given that IPO a second thought..
    Reply | Link to Comment
  •  
    Sep 09 08:48 AM
    Cramer is a showman. An informational showman....I trust his advice as much as I agree with his opinion.
    Reply | Link to Comment
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