On Monday, Jim Cramer, host of Mad Money, shared valuable insights from his years of experience as an investor. He stressed the importance of saving consistently, regardless of any excuses. According to Cramer, starting early is ideal, but even if that is not possible, it is still essential to set aside money for the future.
READ ALSO: 21 Stocks on Jim Cramer’s Radar and Jim Cramer’s Thoughts on These 13 Stocks.
He advised that even if someone cannot afford to build a large stock portfolio, it is still worthwhile to invest in as little as possible. One way to do this, he suggested, is by contributing to an index fund or a major mutual fund with whatever money is available.
“If you don’t have enough money or the time to own a stock portfolio, you can only own one or two stocks, send the money in, as little money as you can, to an index fund, to one of these big mutual funds.”
Cramer also noted that if one is planning to pick individual stocks and dealing with real money, they should open an actual investment account. He compared investing to swinging at a pitch; if you know what you’re doing, it can be profitable, but if you do not, the risks are much higher. He warned against treating investing like a gamble or chasing after excitement, as this can lead to poor decisions. Instead, he emphasized the importance of discipline in investing and urged investors not to let their losses accumulate over time.
“So here’s the bottom line: You want to get started, go small, invest what you know, research intensely, just research, research, research… It’s as simple as a keystroke and the information’s free, including up-to-the-minute financials, analyst presentations, brokerage research, and of course, the conference calls that I tell you are a must if you want to actually know what you’re doing. Simple? No. Lucrative? You bet it is.”
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on May 2. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Jim Cramer Talked About These 7 Stocks Recently
7. Bank OZK (NASDAQ:OZK)
Number of Hedge Fund Holders: 37
When a caller inquired about Bank OZK (NASDAQ:OZK) , Cramer said:
“Well, I’ll tell you, Ozark Bank, I mean, look at this, it’s not a high-quality bank. Now you’re a member of the club. You know, I think Capital One, COF, when it finishes this merger with Discover is going to be, which is going to be done in two weeks, that is the red-hot stock that I think can go much higher. As I said several times today on Twitter, it’s the one I really like.”
Bank OZK (NASDAQ:OZK) is a state-chartered bank that offers a wide range of financial services, including various deposit accounts, lending options, and trust and treasury services for both individuals and businesses. On April 21, Stephens analyst Matt Olney cut the price target on Bank OZK to $54 from $59 and maintained an Equal Weight rating.
The firm believes details about RESG appraisals should help build investor confidence in the bank’s credit view and noted the new outlook includes a slight upward adjustment to EPS and pre-provision net revenue.
6. Applied Digital Corporation (NASDAQ:APLD)
Number of Hedge Fund Holders: 42
A caller asked for Cramer’s opinion on Applied Digital Corporation (NASDAQ:APLD), and in response, he remarked:
“I know the company, and it’s the kind of thing, we have so many of these digital infrastructure plays. I actually just prefer if you’re going to go there, just go buy Salesforce. I’m not kidding. Go buy CRM, I would feel better that way.”
Applied Digital (NASDAQ:APLD) builds and runs digital infrastructure. The company provides cloud services and high-performance computing for areas like AI, machine learning, and cryptocurrency mining. Over the past year, APLD stock went up more than 56%. Moreover, when Cramer was asked about the company back in April, he remarked:
“No, it’s losing money and I got enough problems with companies that are winning and making money. I can’t go for the losers. I am sorry.”
Hedge Fund Resource Center