“People should be investing furiously between the ages of 15 and 65″ says Jim Cramer

Oct 27th, 2007 by admin1 | Scroll down for comments

Whether you love him, hate him, or never even heard of the guy, Jim Cramer is one of the most influential figures on Wall Street. He is most famous for his television show Mad Money, as well as being the co-founder of TheStreet.com. He has made his living in the stock market and has also written a handful of financial books about investing and finance.

Recently, I was reading an article featuring Jim Cramer in Maxim Magazine. The article was entitled, “Are Our Financial Prospects Bright?”

Of course being the host of a hit stock market television show he strongly supported investments in stocks throughout the interview. But Cramer touched on some points about the young and their investments, and the desires he has for people to get into playing the stock market.

Cramer’s take…

“I am advocating that stocks are great- I mean Multi-year great. I see many years of tremendous opportunities to make money outside of your paycheck..I want to emphasize that people should be investing furiously from when they’re 15 to when they’re 65.”

Cramer is then asked about the easiness of getting into the stock market through the use of the internet. And about the Google generation we live in, and is all for it, stating: Youth plus Google equals “I know what people are buying in the real world, and I can go buy their stocks and make money”

With that statement in mind Cramer lastly touches on the youth and what their investment strategy should be:“Play your hunches. Buy the wildest stock. If you’re wrong you have the rest of your life to make the money back. But you could also hit the proverbial home run and be set for life. These aren’t lottery tickets. There’s not one winner. There are alot of winners. If this were the NCAA Tournament, you’d be taking a chance on the 16th seed.”

My thoughts…

I am currently in the process of getting my portfolio set up, but I have almost saved up $3000 on the side to buy some stocks, when I reach that mark. But, looking past my inexperience in the market, I too, agree with Cramer.

A while back I wrote an article entitled “Is Time More Valuable then Money” and quoted an unknown source’s line which stated: ” waste money but never time, money comes back to you but minutes are hard to find.” This definitely is the philosophy of investing for the young in my opinion. Like Cramer said as the young investor we definitely have more time to make up our losses, so it is ok to chase whims and gamble on certain stocks. I encourage people to get started as soon as they can, investing on whatever they think can make them money, before it’s to late.

Cramer also hit the nail on the head about the Google generation, with Google and the technology that is available to our generation, we are more capable of investing and doing research now more than ever.

It should not be that hard to pick a good stock if you know how to use the internet, there are even sites that rate stocks such as TheStreet.com, to give the investing newbie an head start on finding a good stock.

If your a young investor, use your knowledge of pop culture to make you money by using Google, don’t underestimate yourself about knowledge of the economy. You are the consumer and you know what people want and need, so use that knowledge to buy a good stock.

So gamble a little bit, it is the only way you will have a chance to make money, and who knows it may pay off

As far as investing furiously up to the age 65, I do not agree with that, as you get older obviously your risk taking needs to get lower and lower to secure your future, but definitely gamble away until your mid forties in my opinion

What do you think? Should we gamble away while we are young? Is it as easy as Cramer says to find a good stock by using the internet? What is your investment strategy right now?

admin1 posted this article under Business Planning, Personal Development, Investments, Business Development, Personal Finance, General News, Saving Money, Self Improvement on Saturday, October 27th, 2007 at 1:00 pm You can follow any responses to this entry through the RSS 2.0 feed. You can leave a comment or trackback from your own site. View Technorati Linkbacks.