>> yes. etsy. off its lows. i think we could see some growth there. >> dan? >> offer her 150 grand to come work for you next year. double it up axp. thank you for watching "fa ne".st see you tomorrow my mission is simple. to make you money. i am here to level the playing field for all investors. there is always money working somewhere and i promise to help you find it. mad money starts now. welcome to mad money, i am just trying to make you some money. my job is not just to entertain, but to educate and to teach you to be better investors. call me, or, treat me.

tonight i want to share some of my accumulative wisdom and there is a lot to accumulate in this business. there are so many different things you need to balance in order to be a great investor that it can be hard to keep track of everything. a lot of the stuff is much more important than the day-to-day action any particular session, the stock went up, the stock went down. without the right discipline, framework, dare i say, philosophy, you are going to get yourself into trouble. that is why we are all about discipline when we manage the cnbc investing club. is why we constantly fall back on the rules and our investing guide to guide our decision- making for every kind of market. tonight i'm going to share some of them with you. but i know that the big picture financial fights can be hard to process. a lot of this downright contradictory. we tell you to have conviction, to stick with the companies you believe in and need to be ready to change your mind. you need to be cautious but you also need to be skeptical but

need to know when to suspend your disbelief. you need to avoid chasing stocks that have run oo much but also should not care too much where a stock is coming from if you believe it is headed higher. believe me, i get it. if you take all my roles literally, you're going to be running around in circles while tearing your hair out. tonight -- i can't resist. tonight we are going to take a step back, try to put all this discipline stuff in perspective. if you picked our own stocks, which you know i love, in addition to having a healthy balance of index funds, which you know you need, the thing -- let's just say, what you have got to have his good judgment. but obviously good investing judgment is not the kind of thing anyone can teach you in an hour of television or even a year of television. that is why i try to help you build good habits, i tried to teach you the better ways to think about individual stocks

and the whole market. i tried to give you the tools you need to develop your own judgment and why i focus on guiding you through the whole process more intensely, my investing club. all my best professors in college invested in teaching us how to think, not teaching us what to think. i always try to take my cue from them. i wanted to who had to be a better investor, not just tell you the stocks that i think are good investments. the problem is, it is a heck of a lot to process. so what do we got to do? we have to try to put it in context. first and foremost, when you're managing some of your own money before any other consideration, you need to know your self. i have said this before and i will keep saying because it is so important, you could simply cannot know which stocks you should buy if you haven't taken the time to really consider what your objectives are. you need to build up your wealth in order to make a major life-changing purchase like a home, are you just trying to

get a decent return as you save for retirement? do you have enough money that taking a risk will not hurt you? am a people do not do that, they put all their money in speculative stock hoping they will hit a home run and then the truth is there is no one- size-fits-all approach to investing. anybody who tells ou that is different is either dangerously misinformed or they are flat- out lying to you. probably in order to sell you something. but far too often, people will invest in the stock market with these simple goal of making money. that is right, we all want to make money. i want it, you want it, but how quickly do you want that return? what are you willing to risk in order to get there? how much can you even afford to risk in the first place? these are all the crucial questions you need to ask before you start picking at individual stocks. why? because without a clearly defined goal you have no way to determine which stocks you should be buying.

in other words, your 401(k) or ira or brokerage accounts do not exist in a vacuum. if you are trying to save up for retirement, a stock like tesla might not be the most appropriate place to put your capital. if you have a decent nest egg set aside for retirement on the other side, high-risk growth stocks start to look more attractive. in short, before you can start making judgments about individual stocks you need to figure out what your own internal is going to look like. that is the foundation of good investing, judgment, knowing what you need so you can find stocks that suit those needs. it is called suitability and it is important. it may be one of the most pertinent parts of investing. in case that does not get through to you, it's take a look and see if you want to fly across the pacific ocean. if you want to pick up your kids from school, texting down main street in a 747 would be impactful, wouldn't it? in that situation you are better off with that fiesta. how about if you are renovating

our home, do you need to go to home depot for a metric ton of lumber and tiles and paint and maybe power tools to get the job done? the ford fiesta is probably too small and there is no way you will take a 747 to a packed home depot but a pickup truck, maybe a four lightning, we hope. because maybe that can do it. this may sound simple, even downright obvious, but it is the same way with stocks. when you are saving for retirement, you want low risk holding that will give you a slow and steady return. for those of you who do not have time to research individual stocks, you really cannot go wrong with a basic low cost s&p 500 index fund, it mimics the performance of the border market. i recommend index funds endlessly and i will keep doing it. because they are phenomenal. at their best they help democratize the incredible engine of wealth creation that is the u.s. stock market. america remains a growth country , that is very business friendly compared to the rest of the developed world and when

you buy an s&p 500 index fund you are basically betting on the long-term performance of the u.s. economy. historically he -- it has been a very good bet. you need to invest your first 10 ground in an index fund. don't try to bother picking individual stocks until you have at least that much money in an index fund and preferably more. it is the most important bedrock of your portfolio. if you're looking to make slow and steady money over the period of the decades, that is retirement investing in a nutshell. you might also consider certain kinds of individual stocks. a 4% dividend yield may not sell not spectacular but with the underlying stock, the annual return will double your money in 18 years thanks to the matching compound. you have to reinvest that money, that is vital. you can get the same thing but stocks tend to offer the possibility of more capital appreciation than you'll ever get from a bond. of course investors are sadly trying to refund their entire, that might not be the only thing you want to do with your

savings. this is another important point, you can have multiple objectives. you can and should have multiple pools of money. i like to break things up into your retirement portfolio where you are pretty cautious and your discretionary mad money portfolio, the extra money you are not going to need in order to support yourself after what the kids call late stage capitalism has ground you down and you are no longer able to work. you can afford to take more risks in order to generate higher profits. but, for the vast majority of people, your discretionary portfolio is going to be much less important than your retirement portfolio because it is not just retirement. if you want to pay for a house to send your kids to college, you should take a more conservative approach to managing that money. whatever kind of account you put it in, your strategy for college tuition savings or future health savings should look more like your retirement portfolio and your mad money portfolio. please get to know yourself before you dumb down the rabbit hole of getting to know individual companies, something we always try to emphasize in the channel and investing club as you know. the bottom line, trust me.

i get it, when you get excited on a particular stock you often want to dive right in. first you need to consider what you are trying to get out of the market. you don't even know yourself. the answer to that question is not going to be the same for everyone but everything else stems from it. you cannot make judgments about stocks, until you know what characteristics you actually are seeking. and, you value. tony in washington. >> thanks for taking my call. >> of course, what is up? >> when i was working and contributing to my 401(k), the only choices i had were mutual funds. i never made any real money until i started buying individual stocks. i don't understand why mutual funds is so popular. >> well, let's give mutual funds their due. there have been some that have outperformed the market and the 401(k) plans tend to have an array of mutual funds that you can pick so you kind of craft your own portfolio.

i happen to like individual stocks and i like the s&p 500 because i like a low cost index fund that can continue to give me good returns and i am a believer in that. i understand but i am not going to knock the mutual funds, there are some very good companies that do a great job. let's go to rambo in california. >> this is rambo from san jose. >> how are you doing, rambo? >> awesome. i have a question for you, ne of the first metrics that i look at when evaluating an investment opportunity is the company's that and price value. in many cases one that looks attractive becomes far less attractive on an enterprise earnings perspective especially in a high interest rate environment. and give us a sense of how you look at the value when it comes to your investment pieces? >> reporter: i look at how much money the company has to pay, how much money they make and i decide if they don't make enough money to cover the

interest, then it is a sell, sell, sell. every time i violate that principle i go wrong. before you start investing, you have to find out what you are trying to get ut of the market. then you set your goals accordingly for you. once you know what you need, then you can pick stocks but not before that. from being fixable to having the right attitude, i am sharing some more investing rules that might help you become a master of this market, and you just can't miss this show. i will need to stay with cramer. >> don't miss a second of mad money. follow @jimcramer on letter! have a question? treat him. sent him an email or give us a call at one 807 43-cnbc. miss something? go to mattmoney.cnbc.com.

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regulars viewers know that i have a lot of rules. i have got rules for investing, for what to do in a rally, and so on. rules for picking winners, all that we stress constantly when will tell you how to run a charitable trust portfolio. it would be a lot to take in. i want to help you learn from my mistakes and help you develop your own judgment.! we need to have a clear understanding of your own objectives before you start buying stocks, something more focused and really trying to make some money. let's pretend you have already done some self reflection and you know what you are trying to accomplish. now you start buying individual

stocks, enough to fill out a diversified portfolio. before you buy anything i need you to do one more thing. first you have to do the homework. i have covered this before so i will give you the quick version. if you're going to invest enough in a company, you need to know what the company does. you need to know how it makes its money. you need to know how much money it makes him a the internet has made this whole process much easier. you can go online and read the file which contains a wealth of information, you can listen to or read the transcripts which i inc. is the best way to get familiar with the business and key metrics that will drive the stock. feel free to read some journalism, google it. listen to some opinions, anything to familiarize yourself with the company itself, the way the stocks trade, it can be daunting. it is a kind of hole we do for you on our favorite names in the cbc investing club, it is a must to join people. after tonight's show, just sign up so we can show you the hard

work that we do. by the way, lately i have been starting with the website. i have to admit, i used to start with a conference call but i like the company's website because they've gotten so much better. the actual research as part of doing the homework. after you learn what you can and develop a thesis, a theory about why you think the stock is headed higher is one final step. you need to be able to explain that story to another human being. ideally, an adult. it makes some level of sense. walking down wall street, you see me, you buy a stock, i'm going to say what does it do, you better know the answer. for those of you tuning me out because you cannot stand to hear another word about homework, the craft, as i call it, i am done. that is all i will say about the process of preparing to buy a stock here because tonight i am trying to focus on the big picture. let's fast-forward a little. once you have done homework you can build a diversified portfolio to go with your index funds. if you're so inclined, pick your favorite from the club. then you'll know they have been

thoroughly researched, that is what we do. any more than 10, he idea is you should be able to do this in your spare time. not that you will turn money- management into a second or third job, let's assume you own shares in a bunch of companies you generally believe in. you know has a thesis for each one. you have got to have one, there is no sector overlapped meaning you have five to 10 companies indistinct industries that do not tend to trade together, diversification. if you know what a company does you can find out whether it is too much like another company. what you have in theory is an ideal portfolio. what is the most important thing for you to keep in mind, above and beyond everything else , you need to know your perfect portfolio will not stay perfect for long. those 5 to 10 stocks that were winners, unless you are lucky, and all of them will stay winners. some could be losers, some will do nothing and some of the companies will inevitably disappoint you. what can i say? the game is full of heartbreak. which brings me to my next rule, always try to stay flexible.

business is dynamic, not static. things change, markets change, new competitors will enter into an industry and undercutting players to cut price, take market share. previously companies started executing poorly. customers cancel orders, unforeseen events happen that hurt business or simply make some category of stocks seem less attractive to the big institutional money managers who dominate the market. remember, you don't, they do. when something like his occurs, when the story of a company you own shares in changes, you need to be willing to acknowledge that things are changing. that they are different. if your thesis is no longer intact, if the reason you gave for buying a stock in the first place is no longer valid, then you know what you have to do? sell, sell, sell. you have to. this is why you need to! your pitch to another person so you can recognize when your original ideas stop being work there. we have so many calls or people said they like the stock and x

is no longer even the case. you need to be better than that. you cannot afford to say i like it because of x and x isn't there anymore. this may sound straightforward but for decades so-called experts had peddled the idea that when you buy stock you should be prepared to hold onto it until the heat death of the universe. how many times have you said someone say, by, it is nonsense. don't get me wrong, i would love to buy a stock and hold it from here to eternity because the stipend out and it keeps going higher but if the story does not pan out, you have got to be willing to sell. the facts change, that is why i tell you it is buying homework. there are only two stocks that i have ever given my highest blessing, own it, don't traded, there apple and nvidia. used only to do the homework or what just do the homework in case something drastically changes in those two companies. people hate admitting when they have made a mistake, once you

make up our minds, things are great for saying coca-cola, we don't your ex getting away, we like coca-cola so shut up. but you know what? you can't afford to fall in love with any stock. it is a piece of paper. when you buy shares of a publicly traded company are not joining that stock in holy matrimony, you don't soar to stick with it in sickness and health, for richer or poorer, you do not need to go to a judge to get a divorce, it is just a piece of paper. the judge to the divorce, all right. anyway, acknowledged when something is changed. if you buy a stock because you believe the underlying company is going to take a ton of market share and then it fails to do so, don't move the goalpost. don't search for new reasons to hang on, just get out of dodge. you must be willing to recognize that companies can take a turn for the worst. managers can make mistakes, ceos make bad strategic decisions every day. bed bath and beyond, they literally spent $11.8 billion buying back their own stock from 2004 to 2022.

in an ill-fated attempt to boost their stock price, it didn't really work. the company kept losing market share to online competitors like amazon and the buyback could not prevent them from going bankrupt. they spend more than 11 billion on stock buybacks and the things still went to zero? you know it was their mistake? the guys running bed bath and beyond weren't flexible. they kept buying back their own stock and believed it would help instead of saying putting money into technology that would help them manage inventory, please customers, customer attention. by the time they brought in new management to turn the situation around, i think it was far too late. do not make the same error. when something goes wrong with a company you on, be ready to stop hoping and start selling. listen, be unwilling to recognize a turn for the worse as bad as it might be. almost always used the lead to

much larger losses than you have already agreed. a wise person once said to me, your first loss is your best loss, that is what we are talking about. the bottom line, before you buy a stock, please do some homework and come up with a thesis, a reason why you think the stock is headed higher. once you own it, stay flexible. if your thesis does not play the way it expected to, sell the stock. do not keep bashing your head against the wall. just recognize that things do not always go your way and then move on. "mad money" is back after the break.

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tonight, we are talking about the big picture. the step you absolutely have to do if you want to manage her own money. before i get back to it let me just say if you do not feel like reflecting on what you need from the stock market, if you do not want to do the homework, if you do not want to watch the underlying companies and give up on their stocks, when something goes wrong, nobody is forcing you. there is no gun to your head, it is okay if stockpicking is not for you and that is why vanguard invented index funds, why the dutch invented bonds. you have plenty of other investment options, it is why we have created the cbc investing club, to help you understand the whole process. if you're going to play the stock market you should put in the effort to do it right. i think stocks are the greatest

in and of wealth creation in history. you can harness that engine and make it work for you but only if you know what you are doing. a lot of this comes down to discipline, the stuff i have been talking about all night. that there is another ultra important component here. you need the right attitude toward the market, because without the right attitude stocks will break you. this is a brutal game. you need to make sure you are in the right headspace if you're going to play it. i cannot stress this enough, for many of you managing your emotions will be the hardest part of investing, harden and picking winners, harder than identifying new trends, then knowing when to cut your losses. market is a harsh mistress. at times it can feel like being in an abusive relationship but we keep coming back because long-term it is a great way to try to make money. him as you an perfectly produce -- predict the future you're going to make lots of mistakes. when you make mistakes and lose money it can be very hard to

handle. it really is. you need the patients of the dalai lama to not get upset when you buy a stock and it falls off the cliff. imagine what it was like for me and my hedge fund, i was the opposite of the dalai lama even though when i have got something wrong i would flip out, i was not to be chill. you do not want to be around me on a down day. at least back then. this is not a productive attitude. you need to try to remain calm because constantly getting mad at yourself is not sustainable. you will end up running out of patience and giving up. i am not telling you you have got to be the dalai lama, you do not need to be a buddhist monk to be a good investor, it is okay to get mad or sad money market punishes you with this for haver but you cannot afford to punish yourself for the market is brittle enough on its own. in other words your head matters in this game, you need to have it on right every day if you are going to spot opportunities. it is something to approach the market with an inferior state of mind, our heads are clouded

by negative thoughts that generally throws off target. making us do the wrong thing and we will not pick good stocks this way. let me be your stock market therapist for a moment, $300 an hour but there are a lot of harmful recurring thoughts you could have that will messes your judgment. that the worst of the worst when you think to yourself, if only i, as in, if i had only acted sooner or if only i had pulled the trigger on nvidia. don't get hung up on the would've, should've, could have. this is a wasted damaging emotion, it is destructive to the positive psychology you need when you're making investment decisions. for a long time, i would be obsessed going over and over the big mess, it was the wrong thing to do. not anymore. it took me a long time but eventually i was able to see how destructive playing that game can be. there is a key role we always stress to members, the cbc

investing club where we highlight exactly what the messy parts of money management is and we do it not just in the emails, we also do it in the morning meetings and the home stretch. if you're an emotional guy like me you may need to trick yourself into a more productive pattern of thought. i have had to build in all sorts of methods of tricking the mind into not playing this game, removing the stock symbol for my spot. mute the ticker on your social media. if you like to so much, go back and buy it but do not tell me what you could have done or should have done differently. you didn't. whether you walked into a big loss or missed out on a big game it is irrelevant. stop beating yourself up about it. the bottom line, the stock market can be punishing enough. you do not need to make things harder by punishing yourself. do not play the if only game. if you need help curbing this kind of destructive thinking, take the stocks off your

portfolio watch. you will be surprised how much better your decision-making becomes when you stop this and the obsession. it will not help you make money. let's go to john in new jersey. >> mr. kramer, thank you for taking my call. i want to say that i have learned from you and i have earned from listening to you over the years, thank you so much for that. >> i like that, learned and earned is going to be adopted in tomorrow's show, what is going on? >> my portfolio has rose significantly thanks to you and there are a lot of qualified dividend paying stocks in there. it is dividends that are being paid being invested prior to my earned income celery. i am 58 years old and i plan on retiring at 59 with a modest

pension. do you think this would be a good move? >> absolutely. absolutely think it would be a good move and you have the wherewithal to do it and that is what really matters. never bet against yourself, you have to stay invested more than most people realize, i am one of the few people in the world who feels that a person said -- i need that because i do not want people to bet against their long-term existence. the stock market can be punishing enough, you do not need to make things harder by punishing ourselves. you can surprise how much better your decision-making becomes when you stop the would have, should've, could of us. there is much more gentle ahead. i am giving you tips i wish i had back when i started investing. as my colleague and i will be answering your questions about the stock market. stay with cramer.

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let me give you a piece of advice that would have saved me a lot of cash, even more heart ache back when i was running money professionally. this is some genuine sage investing wisdom from the late, great my angelo. quote, when someone shows you who they are, believe them. the first time. and if she wasn't talking about publicly trading companies but if the shoe fits, i say, where it. all night i have been trying to hammer home important bedrock principles of investing, principles we show you how to follow all the time. when some company shows you who they are, believe them the first time. or to put it as lonely as possible, when they tell you that business is bad, take

their word for it. don't try to make excuses for them, just get the heck out. >> sell, sell, sell. >> at least until the smoke clears and you get a better assessment of the damage. let me read you the rest of that my angelo quote. there is another valuable insight for investors, she continues, people know themselves much better than you do. that is why it is important to stop expecting them to be something other than who they are. the same thing holds true in the corporate world. companies objectives are almost always going to another business owner then you will unless they are being ridiculous and negligent. that is why it is important to listen to what the ceos and cfos have to say. with her on a quarterly conference call or they come visit you on their show or even someone else's show. high-level tech -- executives are their best resources. you cannot just take everything that comes out of aco's mouth. there are plenty of executives

who are excessively promotional who talk like they have rose- colored glasses welded directly to their face. and try to ask skeptical questions whenever an alarm goes off during these interviews because i do not want to hurt you. it felt like a whole market ran on hype and nothing else. these ceos can be misleading. material information is what we call a crime. sometimes you need to take what they say with a grain of salt if not a full curtain of -- you might be surprised by how many straight shooters you will find at the highest levels of corporate america, some of them are just plain honest. others do not want to go to prison. good call. either way, they tell the truth. again, when we have someone on the show with a track record of being extremely candid, i try to point that out to you.

it matters. when honest, smart executives always something is going incredibly well, i think you should believe them. this can be a strategy if you get it right. to give you the best example ever, when ceo of nvidia came on the show in september 2022, the stock had been eviscerated for the better part of a year. everybody was giving up on tech in the face of the federal reserve's relentless -- the stock had been beaten down to 120s but he told an incredible story about 11's ability to reinvent itself. less than a month later the stock bought them, four months later we witnessed the birth of the artificial intelligence film. june 11 had the best chips by far and put them out aggressively in advance. in 2023, they are making new all-time highs. we told you to stick with this one for the childhood trust because they earned the benefit of the doubt. we told you to hang on, even when things are at their most ugly in the great racket of

2022. something similar happened with nvidia. he explained his clothes off her company would be fine and it will be the future of the industry. he said there have been no real slowdowns at all in his business, even though it was slow everywhere else. he was right. if you listen to him, you made a killing. more important, if management tells you something is wrong, something whenever a company announces a shortfall, you need to wait at least 30 days before you even think about buying a stock, especially if they give you a preannouncement. a lot of people are tempted by these negative preannouncement names is bad news. they figure bad news must be out already. in practice i found that other than rare exceptions the offices

, when business is so ugly they have companies forced a, early and cut numbers, but typically means there is even more bad news ahead. especially as they are few and far between, companies are more likely just to cut their forecast, if they go so far as to preannounced or get a really back cut, things are going to be terrible for a while. why? it all comes back again to my angelo, when someone shows you who they are, believe them the first time. that negative preannouncement is a first time. they're not just looking at the past, they are looking at their own order book for the future. if they were looking for any help business could get better, the company would not have to cut numbers between its regularly scheduled quarterly reports. if they thought something could get better, not worse, in the next 30 days, they just keep their mouth shut. pronouncements, or severe guidance cuts signal ongoing that you cannot be tempted by. that is why i recommend waiting at least 30 days to see if anything is improved before you

think of buying this kind of stock. that is another rule we try to follow religiously. you may miss some great opportunities every now and then when a stock bottoms ahead of time but most of the time, after 30 days, you will have sidestepped yet another brutal leg down. i know 30 days sounds arbitrary but i found that it usually takes at least a month for the bad news to finally get baked into the stock price and it is okay to start buying. the bottom line, sometimes it can seem like we live in a post- truth world where it is impossible to know who to believe on any particular issue. but even the most skeptical among you should believe executives when they preannounced an earnings shortfall or cut their forecast to well below what the analysts are looking for during the regularly scheduled quarter. these people do not like cutting their numbers, they do it because they do not see much hope of things improving by the time they are reported next

quarter. in the weight of a shortfall, you have to presume the stock will not be bouncing back anytime soon, for the next 30 days, you should treat the thing as a falling that. in short, even if you're not a huge fan of my angelo's poetry, you should trust her investment advice. "mad money" is back after the break.

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i have spent a lot of time here tonight talking about the many name -- ways in which you can make mistakes. we need to guard against them by knowing when to admit that you are wrong. let me be crystal clear,

marking can be as wrong as any individual investor, just as wrong as you. contrary to what so many of them claim, the market makes mistakes every single day. so this is my next big picture lesson for you. don't just assume that the action makes sense. so many do. a lot of times stocks go up or down for no reason or a stupid reason, it is something we try to walk-through with you in the travel trust, the cbc investing club, because so many times the market -- people will try to come up with cc that just do not exist. a company reports earnings and the stock goes down. must have been a bad quarter, right? often that will be true but it is not always true. sometimes there are other forces at work, stocks will go down, the initial earnings release, then bounce right back when management explains things. how many times does hat happen or vice versa? which is why i am always telling you not to jump to conclusions until after you have listened to the call. especially when we are in the

middle of earnings season. the market makes a ton of mistakes. but it is not just about judgment. the truth is stock prices do not always reflect the underlying fundamentals. the actual facts and figures about how the business is doing, the fundamentals are a big part of it over the long- term, i would say the most important part which is why i spend so much time focusing on them but they are not the whole picture. you have to understand the stock market is first and foremost a market. it is prone to all sorts of distortions. when adam smith wrote about the invisible hand, he forgot to mention it is the hand of someone with bad reflexes, lousy coordination, and possibly even some kind of neurological disorder. the poor guy needs to see a doctor. stock prices do not somehow reflect the written reality, as if by magic, there is much a product of perception on wall street and i tell you all this time about short squeezes, it is the mechanics of the market. it can't handle short-sellers.

this is why it is possible to be the performance of the average by investing in individual stocks. if the market worked perfectly would never be able to split any opportunities. the point of the game is you can spot stocks that are mispriced. because there are stocks that are mispriced every day. so why do i bring this up? because when the action is irrational as i find it often is, it can be product -- first reading. to give vantage of these moments where stock prices are simply wrong or i do not want you to throw up your hands and discuss and give up on the whole enterprise. let me go over some of the larger distortions i have seen in my time that are in play right now. for instance, i spent a lot of time talking about what i call the etf of stocks. this has become a major issue for me. for most of my investing career you can bank on a fact about half of the stock's performance came from its sector, meaning how the sector for was doing. the other half came from the actual fortunes of the company itself. in other words, your average company was in control about half of its investing, this was

a good situation as long as he made sure to avoid sectors that were out of favor with the wall street fashion so. the rise of ets is changing the equation, especially sector etf's. also gimmicky ones like the ones that exclusively own thing, my old ackerman for facebook, no matter platforms. amazon, netflix and google. even the stocks of incredibly well-run countries can get dragged down by an etf driven riptide. it is the most ridiculous example. even if netflix has nothing to do with the average, makes business of meta? strange. a lot of times you get situations where sellers throw the baby out with the bathwater. if the worst company in an industry reports bad numbers, the whole group tends to go down. even if everyone else is doing

well. these are opportunities. we saw them with the cyber security stocks in 2023. the reported bad numbers. it was one of the greatest opportunities ever to buy the stock of palo alto networks. sometimes the market is just about to's, you will see companies report concluded aftergood quarter to no real effect. some say well, things are really going well. the next time the business reports a strong number, the stock source. in those cases you just needed to be patient. because the market did not get ready. i keep saying, the market gets it wrong all the time. her people come on tv and tell you that is not true, they are not true. sometimes when the market makes a mistake it is not worth trying to fight it. while the markets are often irrational, they can remain irrational for longer than you

can remain sovereign. an important economist who was a very good money manager, your goal here is not necessarily to be right, it is to make money. sometimes that means being a little cynical about other people's expectations. you are wrong, that i was right, here's the bottom line. do not just assume that stocks come down, don't presume they deserve it. in the immortal words of clint eastward in unforgiven, he made a point. he says, deserve has got nothing to do with it. the market is going to make mistakes. your job is to recognize when it is doing something wrong and try to take advantage of it. stick with cramer. power nap. [ employees snoring ] anything can change the world of work. from hr to payroll, adp designs for the next anything.

i always say my favorite part of the show is answering questions directly from you. tonight i am bringing jeff marx, my portfolio analyst and partner in crime. help me answer some of your most burning questions. we are going to take a look at some of your ad tweets. for those of you part of the investing club, he will need no introduction. for those of you who aren't members, i hope you will join and i would say that they are back and forth, help me do a great job for all madmoney viewers. you see a lot of the stuff that we talk about in the show, now you're going to get to see it in real time. we give you an in-depth look at our portfolio decisions and answer your burning questions too. if you like this, joined the club, for heaven sake. what we are going to do is go white to the questions. john arizona asked, when profit is taken or there is a sizable cash on the sidelines, how

would you pick a stock to add to my portfolio? i want to start out by talking about the oscillator. because if there is a lot of cash on the sidelines, i am not that interested in putting money to work. >> if you're looking for new ideas, a couple ways you can go, sell stock in one area, look in the same industry but a better run company, you could buy that, we call that high grading the portfolio or if you're looking at something completely new, ab it is something, an industry up on the rise or good dissipation of value but at the end of the day we are looking for high quality of companies. >> next, we are taking a question for mike in maryland who asks, how can an investor choose which is more likely when the narrative flip flops back and forth? here, we are not traders. we do not -- we have a lot of special situations that are not dependent upon a recession, dependent upon strengthening the economy. when we have it we like to look at our sector and figure out

whether that sector, for instance, let's say we are picking something -- we are buying an air conditioner company. that is typical in the cycle, you should sell them. but if there is a secular pace, thinking about carrier because i like it very much, it really doesn't matter because there is such a huge amount of money. so i am saying those words, expansion and contraction, usually do not play that much of a role in our stockpicking. now we are going to twitter. take a look at some of your tweets. let's look at ivan on twitter who says, i am starting to think jim cramer is a time traveler from the depression era. that is photoshopped, there is no way. i was in the philadelphia line, this is the new york line. so immediately i know this isn't right, and by the way just so you know, j.p. morgan had his pictures, he was the first ever to be photoshopped, because he had what was known as a cauliflower

notice, he had no pictures of them, one spontaneous one happened to be taken right about here, all i can tell you is if he was photoshopped, i am photoshopped. >> is that back when they used to call it corner around here? >> i don't know. all right, this is it. i am >> antennae for brian sullivan, right now on last call a boeing whistleblower speaks out exclusively ahead of tomorrow's hearing. we have the disturbing allegations. new troubles with the cyber truck causing tesla shares to do something they haven't done in over a year. an election twist fit for hollywood. the producers son of republican mega donor just stunned the political world. we have the details. a fentanyl crisis, and explosive new report out of congress points the blame at