Jim Cramer's Get Rich Carefully

December 15, 2013
Forget about getting rich quick: The new investment climate, writes Mad Money host Cramer (Jim Cramer's Real Money: Sane Investing in an Insane World, 2005, etc.), is "treacherous....[B]izarre stock movements have become the staple, if not the hallmark, of this era." It's an age of "random gyrations" and irrationality, and the 2010 "flash crash" may have been a technical hiccup, but it's spooked investors ever since--and Cramer, formerly known for his exuberant approach (and often lampooned for it), has since taken a visibly more deliberate approach to the matter. This new book reflects his caution. For one thing, he observes early on, the stock market is now "hostage" to sector exchange-traded funds whose movements make the fundamentals meaningless; the big-basket approach is the tail that wags the dog. Of course, ETFs are easier to own than individually selected stocks, and, as Cramer observes, if you want to understand the cyclical nature of the market, you "have to be on top of world events, particularly in China, pretty much every day," which, in theory, is just what fund managers do. Still, the author stresses fundamental wisdom pitched at different categories of investors: For a conservative investor, for instance, he recommends "pipeline master limited partnerships" as a point of entry into the energy market, while he notes the tea-cup shifts in commodity producers like Domino's Pizza that, properly timed, can yield wealth. But who can time the market? Not the Federal Reserve, for sure, for its minutes are a month old and are worth "nothing at all." Cramer's long list of dos and don'ts (Relative valuations don't justify a purchase"; "Stop falling in love with your stocks") is worth the price of the book. Look to this book for guiding principles rather than specific tips.

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Starred review from February 15, 2014

The post-Great Recession investing environment is much different now than when investors sought refuge in the "safe" investment of bonds, as the bull market in bonds has come to an end. Cramer (host of CNBC's Mad Money with Jim Cramer; Jim Cramer's Getting Back to Even; Jim Cramer's Real Money) offers his response with this guide to a high-yield, low-risk strategy for investing. Each chapter covers a separate topic, from insights CEOs can count on to what moves a stock price. Chapter summaries cover the main points in a succinct fashion, while the rest of the section contains examples and stories in Cramer's typical down-to-earth manner, reflecting 35 years of industry experience. VERDICT A practical guide meant to give the reader real advice on how and when to invest, this book will be popular among Cramer's followers; its guidance differs slightly from previous titles to account for the current market circumstances, so there will be something new for everyone. While some of the examples will become quickly outdated, this is a highly recommended resource for stock investors who want an inside look at the market. [See Prepub Alert, 7/15/13.]--Elizabeth Nelson, UOP Lib., Des Plaines, IL

Copyright 2014 Library Journal, LLC Used with permission.

January 1, 2014
Cautious investors are weary of low returns on bonds and CDs but wary of the stock market, given recent precipitous declines and minor crashettes. Cramer, former hedge fund manager, host of CNBC's Mad Money, and founder of TheStreet.com, asserts that conservative investors need not shy away from stocks. Cramer identifies several megatrends (and stocks) that promise strong returns, including technology that embraces the holy trinity of social, mobile, and the Cloud; healthy eating; frugality; biotechnology; and energy. Beyond the trends, Cramer highlights bankable CEOs offering strong management that also promises strong returns on the stocks in their companies. In highly accessible language, Cramer explains how the stock market is influenced by economic data, Fed policy, world events, the actions of hedge funds, and the trend toward sector funds even when the underlying fundamentals of a stock remain stable. Drawing on his long experience, both mistakes and successes, Cramer demystifies the stock market and offers sound investing advice and an insightful overview of the market for cautious investors.(Reprinted with permission of Booklist, copyright 2014, American Library Association.)