Best investment sites for Jim Cramer performance

Jim Cramer, the hyper television investing personality, is more than just an investor, he really is a performer.  I’ve told clients and other investor to focus more on his ideas and how he arrives at his analysis than his actual performance.  Why?  Because that’s what he should be judged by — he’s made an entire generation of people excited about the stock market and empowered to do their own research.

If you are interested in researching Jim Cramer’s performance, here’s a list of resources that should help:

Who is Jim Cramer

Jim Cramer: Wikipedia entry

Jim Cramer’s Books

JIM CRAMER’S GETTING BACK TO EVEN: Cramer offers the most detailed guidance he has ever given on how to invest in a changed market. Savvy investors will not just survive; they will thrive. Cramer begins with six rules for protecting the money you have and making sure that you have the money you need.

Confessions of a Street Addict: When I joined the hedge fund, this book was a must read for all new analysts.  Great look at Cramer’s experiences and performance at his own hedge fund.

Stay Mad For Life – Get Rich, Stay Rich (make Your Kids Even Richer): A bit of a departure from previous books, in Stay Mad for Life, Cramer addresses broader issues of personal financial management that one deals with from cradle to grave.

Jim Cramer Online

The Street.com: Cramer is Chairman of the Board for TheStreet.com and one of the sites numerous investing personalities.

CNBC’s Mad Money: If you haven’t watched Mad Money, Cramer is at his best ranting and taking unscripted calls from the public.  You can get a feel for his encyclopedic knowledge of the market, sectors and individual stocks.

CNBC Mad Money Stock Screener: You can drill down on Cramer’s picks on the show and see how they stack up.

Cramer’s Picks: Seeking Alpha: Seeking Alpha has a daily recap of Cramer’s stock picks.

Jim Cramer Performance

Barron’s 2010: Cramer’s star outshines his stock picks (sub reqd.):

This article actually shows that investors would do better by shorting Cramer’s Mad Money Picks rather than going long them.  See accompanying graphic.

Proof: Jim Cramer Isn’t a Lousy Stock Picker: From the Business Insider, this article reviews a recent academic study (mentioned below) that found:  while Cramer may be entertaining and mesmerizing to many of his viewers, his aggregate or average stock  recommendations are neither extraordinarily good nor unusually bad.

Bolster, Paul J. and Trahan, Emery A., Investing in Mad Money: Price and Style Effects (October 29, 2008): This is the paper referenced by The Business Insider entry above.  The two Northeastern University academics do a really good job drilling-down into Cramer’s effect on stocks.

Engelberg, Joseph, Sasseville, Caroline and Williams, Jared, Market Madness? The Case of Mad Money (January 23, 2009): This more recent study showed that Jim Cramer influences market prices through his recommendations on the show Mad Money and that overnight returns following his recommendations are highest for small stocks, stocks with high idiosyncratic volatility, stocks recommended on days when wealthy viewer-
ship is high, stocks that have performed relatively poorly over the previous twelve months, stocks recommended on days when relatively few recommendations are issued, and stocks recommended during the discussion segment (as opposed to the lightning round).

Must See Jim Cramer Videos

Cramer’s famous “They know nothing” rant on the Federal Reserve.


Famous Jon Stewart – Jim Cramer feud.

10 predictions in online finance for 2010

I’ve been thinking about what the future has in store for investors and I’d like 2010to use this post to help clarify my thinking.   Essentially, I’d like to hone in on what 2010 portends for online finance.  I’m looking for some broader trends, as well as some company-specific prognostication.

  1. AOL’s ascension, Yahoo Finance’s continued domination, Google Finance tweaks:  Now that AOL has fully cut the cord from Time Warner after opening up the portal, it’s got to fend for itself.  AOL Money’s new incarnation is DailyFinance, a formidable offering worthy of investor eyeballs.  DailyFinance is the crux around which AOL has woven its numerous niche sites, like financial blogging site BloggingStocks and personal finance site, WalletPop.  Look to AOL to get its ship in order and move up the traffic charts.  Yahoo Finance, barring a sale of the tech firm, will continue to dominate, without really any changes to the platform.  They’re pretty much on cruise control but will still get the vast majority of financial traffic.  Google Finance will still suffer from lack of attention but the search firm will turn its sites on generating traffic to the fledgling site given the fact that CPMs are high in the financial vertical.
  2. Consolidation in the brokerage industry: While many of the old-school online brokers (what a weird expression) are still wary of the changes social media has ushered in to online finance, a couple of the startups in the field (Zecco, TradeKing, TradeMonster) understand it very well.  I think you’ll see the big boys make a small tuck-in acquisition of one or two of these players and continue to run them under their own brand.  An acquisition would be  a relatively inexpensive laboratory for the big brokers to begin to get a feel for the second generation online trading environments.
  3. Small RIAs begin to adopt expert communities in greater numbers: Covestor and kaChing offer asset managers an alternative distribution mechanism to bring in assets.  Through a transparent trading platform and encouraged blogging, expert communities provide a business model to the financial blogosphere as participants get paid by investors to mirror their trading activity in their own brokerage accounts.
  4. Howard Lindzon does it again: StockTwits gets an offer for $25 howard_stocktwitsmillion — I’m not convinced he accepts it or where the offer comes from, but his winning streak continues.
  5. SeekingAlpha raises another round of financing: On top of the round they just raised, the financial content aggregator will go to the till to raise more funds as profitability remains somewhat elusive and management gets aggressive about growth.
  6. Reuters buys Wikinvest: Reuters understands branded content (a wikinvestla Felix Salmon and recent purchase of Breaking Views) but also understands the power of social media.  Wikinvest would be an interesting addition to the recent rollout of sweet, new Reuters.com.
  7. Jim Cramer and TheStreet.com left with few options: TheStreet.com sees revenues decrease and isn’t able to find a buyer or strategic investor.  Their blend of freemium content doesn’t resonate well with the public and they continue to struggle to find footing.  While current columnists won’t see the whupping that Dykstra took this year, the firm prepares for bankruptcy in 2011.
  8. Bloomberg, Bloomberg, Bloomberg: Bloomberg fires on all cylinders.  As it continues to own the institutional space, with BusinessWeek in tow, Bloomberg gets serious about retail financial/business content.  They hire more than 5 people to run Bloomberg.com and they make other smart, strategic acquisitions to pimp out their portfolio of properties.  For a firm that gets so little of online finance traffic (I think last numbers were less than 5% of online finance traffic), they have a long runway ahead of them.
  9. James Altucher becomes  the man: Blending smarts with a good altucher_dailyfinance_blogwatchsense of humor, Altucher is on his way to ubiquity with great positioning in the WSJ, RealMoney, and AOL’s DailyFinance. Look to see more of Altucher’s market commentary and stock picks.  By the end of 2010, Altucher will launch his own mutual fund as he goes retail.
  10. Maria Bartiromo and Tiger Woods: 2010 will reveal that the queen of CNBC will have traveled with Tiger on his private jet numerous times with no chaperon.  Well, not really.  But who hasn’t been with Tiger…

Wishing everyone a great holiday season and a prosperous 2010.  It can only get better from here (I hope).