An Investing Point By Jim Cramer

Last evening while waiting to go to sleep I broke a rule I generally have about watching Jim Cramer’s Mad Money program.  My rule is usually:  Don’t.  It’s not that I don’t think he knows what he’s doing.  Heck, he knows 1,000% more than I do about the “market”. 

CornholioIt’s just that I usually don’t watch Cramer because of his style.  It reminds me of Beavis when he had too much caffeine and he turned into Cornholio.  Only that was supposed to be funny. 

Anyhoo, as I flipped through he caught my attention with a rant about the differences between professional investors and the amateurs.  There were several points all of which I found interesting.  And upon further reflection it occurs to me that one point is very much a part of my mantra as well;

The professional investor is first concerned with how much money he could lose.  Not how much money he could gain. 

That’s one of the reasons I love real estate investing right here in boring but very stable Kansas City.  And why within the Kansas City metropolitan area I’m even choosier still as to what neighborhoods I will recommend investors to grow their portfolios. 

As stated before, I’m not a big fan of the lower priced neighborhoods.  Growth is slow.  And neighborhoods can turn for the worse rather quickly.  And I’ve also stated that I’m not sold on the condo boom in downtown KC because I think there is too much inventory at too high of a price.  That’s more speculative than I like.

So I guess I have a little Cramerica in me after all. 

4 Comments

Filed under Kansas City, Personal Real Estate Opinions

4 responses to “An Investing Point By Jim Cramer

  1. Chris – Thanks for sharing the Cramer post. He really does feel like Beavis! I love the quote, though . . . the way pros look at the potential to lose vs. the potential to gain is a major distinction worth noting for sure!

  2. Josh, thanks for stopping by. He needs TP for his Bunghole.

    Er, sorry.

  3. Cramer usually finds new ways of teaching old and sound principles.

    The Old School translation to the Cramerism — Plan first for the preservation of your investment capital before getting all excited about the return on that capital.

    Another solid effort, thanks.

  4. After 4,000 years of man kind being the king pin, there really isn’t a lot new, is there?

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