Customer Reviews

Jim Cramer's Real Money: Sane Investing in an Insane World

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4 star:		(1)
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Fans of Jim Cramer's radio or TV show will love this book, but it's good for others as well. He has a lot of interesting things to say at a fairly advanced level, but still accessible for a less-knowledgeable investor. The writing is easy to read, and his style is entertaining, as one would expect.

Interesting and insightful views on the interest rate/business cycle as well as options. Definitely a lot of practical advice in here. And it's not all hype, he doesn't say that you'll get rich quick or anything. Actually, I admire his candour, because contrary to what would be good for his show's ratings, he advises against do-it-yourself investing if you don't have the time to commit to it.

I'd say it's a good gift for the investor in your life.

The lure of fast money has always drawn those with gambling instincts to the financial markets. Successful hedge fund operators, like Mr. Cramer, have learned valuable techniques for using combinations of financial leverage, intense homework and careful attention to find more trading winners than losers in fast-moving securities.

Naturally, it's then exciting to tell your gut-wrenching stories of hard-fought wins with beginners to make them feel like part of the fast-money crowd. It's part of what draws people to attend events where celebrities are present.

But few people will be able to read this book and start making great speculative investment decisions. But many people will think they can.

If you want to read this book for fun, that's fine. Just don't start following this advice. Real Money won't get you there.

Here are the best lessons in the book:

1. His explanation of how sector rotation among industries occurs along with tightening and loosening of interest rates by the Federal Reserve.

2. Diversify to control risk.

3. Beware of Wall Street hype.

4. Check hope at the door.

5. Giving up on value is a sin.

6. Buy damaged stocks of good companies with great prospects.

7. Don't buy all at once.

8. Do your homework and stay on top of your positions.

9. Keep most of your money out of speculations.

A major weakness of the book is that Mr. Cramer focuses on the U.S. markets at a time when the gains from non-U.S. markets have been magnificent. That's like teaching someone how to use a portable calculator to create spread sheets rather than using Excel on a portable computer.

This book is very educational but also easy and enjoyable to read. Jim explains cycles and other such stratagies he used to make money in the stock market back when he was a hedge fund manager. He also gives words of warning and things to look out for.

I loved his book, meat of the book doesnt happen till the middle of book where you get to learn his 10 cammandments, and his ways of spotting bottoms and tops. This book should be read with his other book confessions of a street addict thought. However, I was surprise he didn't add in his 10 cammandments of short selling. Its free on his website thestreet.com thought. you just have to type short selling ,10 cammandments, and you will get it. However great book.