manufacturing. they used cat talinn, catalent's biggest customer is sarepta. final trade catalent. >> we'll see you monday at 5:00. "mad money" with jim cramer starts right now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere and i promise to help you find it. mad money starts now . i'm jim cramer, welcome to mad money, i'm trying to make you money. my job is not just to entertain but to teach you and that is what we're doing tonight. call me at or tweet me. letting you in on something big.

do everything i do at home, put in the time and effort, simply investing individual stocks, running your own portfolio rather than running your money into some buy or index fund, something i can -- confident you can do by yourselves. i emphasize doing homework, if you do the trust stocks joining the cnbc investment club. one hour per week first document researchers are readily available on, online, less than an hour week, a few hours of intense stocks unless you blow up the club itself, you can cut down the homework you do because you do it with you. investing is more than stocks, then i get worried because i can be difficult unless you are matching money full-time. if you don't have the time or inclination to pick stocks, you are better off picking low cost index fund. those are good, i'm in sum,

you're willing to put in the work, people can trounce the average as long as you're disciplined and follow the rules. rules we constantly highlight as part of the cnbc investing club. that is what we are talking about tonight. the show is about the method or methods, quoting the bar to my madness. how do i pick stocks, what gets on the show? how do i tell you some stocks are worth buying and some aren't. those are the russians people asked, tonight we get some of the answers. far too many methods, far too many ways to pick up great stocks to cover one show. i went to show you the tools of my trade, start to pick stocks, like me, on your own. i want you to be a great manager of your own money because you can focus on a smaller number of names while i do the lightning round. the show is about educating, giving you the perspective on how the market works and help you try to make money.

not here to find dock picks, like the proverbial man to fish . i want to empower you, that starts with me teaching the many tricks i used to pick up great stocks and invest in them like a pro. serve me well more than four decades and allowed me to generate 24% annual return after fees for 14 years of my own hedge fund, not bad. these skills refresh the show and guide me as i match my own trust. learned exercise by joining the club. one of the ways to identify potential transport names, the stocks i should possibly own but not necessarily ended up on the show is by watching a list that comes out every day, it is called the new high list. stocks and analyst uses, the highest of the high, something going for them, especially true when the market is in bad

shape. the best of the best had ties when the average falls apart. what does it tell you when stocks on the new high list, part of a volatile market because the sectors on fire or the company itself has serious earnings or sales momentum. no matter how they get there, many stocks on the new high list keep going higher because it is a list of aa-students to keep betting on, they get straight a's like the smart kids at school with a great bull market, you can see it over and over again, hitting new high after new high. following them was a terrific way to make money, even as the bears claim endlessly the bull market was false and could not be trusted. missing out on some of the greatest rallies in history that i'm nothing you can chase any stock hitting new highs. true clown behavior. if you want to identify potential winners, unless there is a dunning change in the market caused by changing interest rates, possible political environment, a good place to start, wonderful place to start is the new high list.

that is a thing about the market, not that hard to play once you understand there is more continuity than change. things keep going the way they were going until something major shifts and you have to alter your course. those course changes can be radical. that is why you have to be re-evaluating your ideas and you should never dig in your heels when the facts change. something to emphasize when i send out these investment club bulletins. i recommend trading stocks of the new high list, unless is -- special circumstances. when i'm looking for stocks, wait for something to pull back from the new high list. that is the best place to start , buy, buy, buy! the new high list is not a shopping list, inspiration list, keep an eye on the names and wait for them to come down so you can pull the trigger. the pullback, ideally 5 to 8

present gives you good lower- priced entry point with a stock with a lot of positives going for, overall mood of the stock market, optimum level less than 5%, too early, more than 8% something is gone wrong, very wrong. poring over the new high list is the fattest way to identify potential. i stress potential stocks to buy, only buy stocks that pullback from the new high list confident they will come back for substituting -- substantive reasons. do the same homework you do before buying stock, you must have conviction, even if stock is going higher, it deserves to go higher. the biggest caveat to pull back from highs, mixer they pullback for good reason. the selloff needs to be extraneous to the business. don't buy homebuilder that is done because interest rates went up, that could hurt the numbers. higher rates, nothing to do with earnings, maybe it is buying. make sure your dealing with

momentarily damaged stock and not troubled company going down, down, down. how do you tell damaged company or damaged stock? fundamentals have not changed. fall from grace, profit-taking or panic in the market in general. more than ever, stocks are traded like commodities, ultra leverage fund, hedge funds, selloffs that make no sense whatsoever. you see high-quality stocks pulled back off of their highs for unrelated reasons to poor business. the picture changes, whatever made the stock attractive is climbing to the new high list goes away, that stock is no longer a candidate for your portfolio. the story has to be intact or the method won't work. here's the bottom line, the first method of cramer's madness, watch for stocks that pullback from preselected list, the new high list, especially because rod market selloff is sometimes a great opportunity. some of my best picks of the

club came out of the process and hopefully some of yours can too. let's take some called, andrew from georgia. >> hey, mr. cramer. >> good day. how are you ? >> doing well, thank you for asking. fairly new investor, about three years. one, i want to say i appreciate everything you do for the little guys that don't really know what they are doing . >> thank you, thank you, andrew . that is terrific. how can i help you? >> my question is about earnings. after the earnings announcement, how long, late when you say the smoke cleared what you do -- i find after ipo, you have to be careful. >> what you've got are a lot of

analysts that want to say positive things and they tend to lose critical faculties. my advice is very clear, when you get a stock that stands substantially where it opened, that is how you look at it. a lot of time controlled by people way to enthusiastic, a company with actual earnings and a good balance sheet that trades at a premium to the stock market that has a premium growth rate, that might be okay, otherwise, no thank you, i will find better stocks. west virginia. >> good evening. >> thank you for everything you do, i think you are a national treasure. i learned so much listening to your show. >> you are very kind. >> when you want to generate cash, how do you decide what stocks to sell? >> we talk about this a lot of love, i tend to rate my stocks one to four about fundamentally, cell four or three on any lip. when i try to look at, it is like paintings,

collection, i don't want to buy new painting without selling old painting, i don't want to have a museum. i look for companies that reported a bad quarter disappointing to me, that have a little bit of lift that i can start lightning up-front. i don't want to sell a company that had a good quarter, i'm looking for companies disappoint, always there, you have to have the discipline to sell, sell, sell, as hard as it might be. timothy from new york area >> hi, mr. cramer area thank you for taking my question. i want your opinion on quants, screen dozens of parameters on dozens of stocks and use algorithms to rank them in terms of growth and momentum, profit and failure, bold buy or sell recommendation. very good repeatable performance but it seems to me, at the bare

minimum, these are valuable tool. on the other end, why would investor use them exclusively? >> that is a great question i think a lot of time the quants go up and down, trade too much, recommend stocks and the chart says no or the numbers say no. i like to buy great companies with great management that have good secular tailwinds behind them. the quants do not necessarily catch those. i do think everything whether it be quants, charts, everything from research, i like to include it all. if quants have great records and they share a data they are using, i'm a buyer too. now you know the first method of cramer's madness, watch for stocks that pullback from the new high list, broad market selloff and not because of something happening at the company itself. some of my best picks came out of this process, hopefully your

stew too. tonight, in-depth look at methods of my madness, watching shorts and trading around key positions. you want better more well- rounded sense of how to secure your own stock portfolio, you do not want to miss the rest of the show so stick with cramer. don't miss a second of "mad money" , follow on x, tweet cramer, mad mentions, or send email to madmoney@cnbc.com or give us a call at 1-800-743- cnbc. miss something ? go to cnbc.com.

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for more watching and less spending... x marks the spot. do it all on the network made for streaming, and bring on the good stuff. welcome to tonight's methods for madness special where i share some of my best

tricks for buying and selling stocks, to give you the sure ones. truly timeless investing wisdom of the ages but i'm too humble to say that. i would tell you to think of me as the penn and teller of the stock market with the physique a lot more like teller. pullback the curtain and look what professionals look for stocks to buy and what to sell. there is no magic, no hidden talent, about a -- discipline to make mad money if you're disciplined. to be all that smart, to be honest, know what the heck you're doing and put in homework. that is where cramer the site and wise clown, less of a sad, and more like king lear, something to think about. enough shakespeare. move on to more important things like how to find stocks that are great buys earlier i was talking about picking up some stocks that pulled off the new high list because you get a cheaper entry point, something a proven winner. you rarely want to buy off of the new high list

because you pay too much. you get a better chance, better deal if you're patient and wait, five-day person, given how volatile the market can be, even when things go well, very few occasions when buying a stock off the new high list can be justified. have some patience. stock is so hot you have to buy it whenever you can, as soon as you can't because it is not getting lower anytime soon, i have felt that and you have, you don't find it often. when you find it, don't buy all at once, buy 100 shares of the stock, so much mojo it won't get a pullback from the high, buy 25 shares worst that happens, goes higher, you don't buy more so you grab a quick profit and find the next one, believe me, there is always another one coming down the pike . one exception it is okay to buy stock hitting a new high. if you see insiders buying the stock when it is already up a great deal, that is a total green light, don't laugh, it does happen, it is rare but it does happen. in my experience, it is rare if picking stocks does not work

out. i love to see it buying it a decent run, terrific sign of the conference that insiders have just beginning or there's a big runway ahead. they think it is long-lasting, fyi, insiders can't flip a stock they buy immediately, you have to wait six months otherwise the government takes away the games, that is the law these people see positive things that likely aren't going to disappear in six months time, boy, i like that. normally insider buying from small to large, sometimes you catch insiders buying stock because they want to give the impression of confidence, painting the allusion they're doing better than they really are. insiders are not stupid, buying their own stock, the market will smile upon them. occasionally they gained the system, that is fair but it means we ignore most insider buying that is not substantial because it could be flimflam. what a word. when you get truly colossal insider buy, even not at the

high, you might want to take another look at the stock in question, insiders buy a lot of shares, what a powerful endorsement. the vibe of the insider buying declares sincerity. focus on one, the kind you see in stocks running and perceived as historically cheap or low dollar. those sometimes can be down there for a reason to there's nothing more arrogant and telling when insider backs up the truck for their own stock rolling along at a good clip. think about it, they say we know we rock, our money, we are so darn confident it will keep going higher, we will buy shares right now hand over fist. arrogant? sure. it is rare but it is in hubris. corporate insiders are not fools with notable exceptions. if the stocks are on a tear, there is probably a good chance the executives know what they are doing. not everyone deserves the benefit of the doubt in this business, some investors got

burned by the 2021 bone i give us -- >> boo! >> most ceos are crooks. healthy skepticism is one thing, leading to something positive is something else entirely. you invest in the stock market, some measure of trust to the people who run the companies you own shares of, otherwise why bother? buy the index fund, what else could be going on with insider buying? antitrust division are hostile, you still get takeovers, sometimes executives buy their own stock because i hear footsteps. they tell bankers a lot of customers interested without anything specific. they turned down the companies, spurned temperatures happen all the time . executives expect they may be next, it is healthy and honest reason to buy. or maybe they realize the business isn't worth more than i thought and can be broken up by bringing out, all different

generations, tyco, dupont, tons of breakups over the years and they generally produce long- term gains because wall street likes smaller, more straightforward companies easier to get your head around. think about it, the old united technologies, executives see the ability to create value and want it on themselves or maybe the stocks run up it but don't think the run is over because they recognize how much better the business will be once it is broken up. for me, buying after eight big rally, i could feel reckless and lazy, most investors are smart enough to wait for pullback before pulling the trigger. but insider buying after decent run tells me one of the people who knows the business best does not believe there will be a pullback and nothing more bullish than that. i feel you wait until the stock sells off after the insiders have bought that that is the best possible of both worlds. does not happen often, i have seen it with red hot tech stocks, terrific time to buy. bottom line, one more method of raimar's madness can you see

insider buying with a stock that had a solid run, admittedly rarity, you might want to do some buying. more after the break. coming up, need another tool in your belt to help identify the right time to buy a stock? @jimcramer her short interest in a name could be your telltale sign to buy it, next . ♪ ♪ [ speaking minionese ] no. no. no. no. no. no. [ gasps ] [ chuckling ] good job, junior. way to go. [ chuckling ] [ speaking minionese ] icy hot. ice works fast. ♪♪

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you are in luck because you cut cramer on a good night. not going hundred sip on that cheap scotch on the linoleum floor to apologize to doers, not suggesting linoleum floors or scotch of choice, 18-year- old. have you tried 18-year-old jamison? sweet. don't waste time, don't on the floor either. i'm in a great mood, manic mood, me at my best, i'm pretty darn impressive in production in high gear, revealing the secrets, methods to my madness. stock picks and the best ways i know to pick stocks. i will teach you to invest and trade like cramer, not to be like me because i have emotional issues that frankly you probably would prefer not to emulate, somewhat off track so far, gave away two precious secrets, two tools i use with

my hedge fund and trust, followed by joining the cnbc investment club, unlike lady gaga, i play with open hand, not a poker face. subscribers can see my trades before they happen. what i'm teaching tonight are what i call tells. they are signals a stock might be worth owning, worth your time and effort to go through the often boring process of reading through the conference call transcripts and orderly files, doing the necessary work. thousands of stocks out there any method we can use to narrow down the ones that might be attractive to us is a method worth having. i talk about buying when hot, i don't use insider buyer, the only way to determine whether or not stock has it going. there is one other scenario where insider buying makes incredible bullish tale, the stock has a heavy short position. a lot of people borrowed shares, sold shares, are waiting for the shares to go lower before they buy back the

stock, returned to the bank that borrowed them from and collect the difference between the price they sold them at first and the price they bought the stock back later. regular investing only reverse, try to buy low and sell high, short turnaround, sell high and buy low. the stock has high short position, a lot of people have serious condition the stock is going lower, takes more conviction to shortstop and go long. when you're short, potential downside is incident, when your long, the stock stopped losing money when it hits zero. shorts lose money when the stocks go higher and there's no winnowing. if there is a lot, the stock get some great news, you get a short squeeze. it sounds exactly like what it is. in order to close out the position, the shorts have to buy, it is called coverage, short covering. a lot of shorts cover at the same time, in a panic, the

stock will surge because what you have is a lot of people desperate to buy the stock to thomas is. a lot of demand that they have to buy unless they want to perform wiped out. the process is so editable, concerted buyers will short squeeze, that is what gamestop was all about, that is what amc was all about, that is what the meme stocks were about. where does it fit into the equation? let's say you have a stock on the high short interest in people running the company start buying shares for themselves or maybe outsider takes more than 10% stake in the business. in any case, once more. drawing a line in the sand for the short, our stock goes this low and no lower. explosive combination, people, one that leads to a short squeeze that since the stocks higher. shorts are smart, tend to be smarter than regular longside investors but they usually don't know more about it business in the insiders who run it. if a lot of people are shorting a stock in management starts

buying it in sizable amounts, start doing your homework right then and there, really. it usually makes sense on the side of management, ride it higher and higher in true jackie wilson style, higher and higher, lifting me up. as the shorts panic and push shares higher, desperation to cover positions, cut their losses and move on. similar with heavily shorted stock has begun the buyback, bigger than any previous one. that is another line in the same situation, contradicting the shorts. companies often repurchase their own shares. not a lot of buybacks are lost but a lot of them are waste of money. substantially new buyback in the face of shorts is a good reason to take a closer look. a note of caution, you need to be very careful dealing with the company in the crosshairs of a short stock, especially when people are nervous and the market is in bad shape. know the landscape. shorts have record stop, business is fantastic, these days, stock owners no longer have the benefit of rules that

slow down short stock and made it harder with bear raids. it was harder, the s.e.c. gutted the rules under democratic and republican administrations, all in the name of creating more efficient markets. without the protection, he can't smash this box down, shorts cannot assassinate them, smash them down, anytime something goes wrong. the crash of 2008, such a horrible period. we saw smaller version during the mini crisis of 2023. the shorts are like shooting fish in a barrel. so many banks traded like going backwards, other than a few never wells like first republic, they were fine. short-sellers found themselves targeted, facilitated by social media platforms so they have to be careful. only when the meme stock crowd goes up, you never know when that will surface. these are highly unusual situations. you can find great opportunities and stocks when the shorts have overreached and

buying. before going into situation, i have to warn you, the balance of power favors the short- sellers. even if the short- sellers are wrong about a company travis prospects, they can still demolish a stock and especially highly visible campaigns. many times, the shorts are right, the stock deserves to be slaughtered. don't underestimate the amount of damage shorts can do to the stock. the best investment against bear rates are solid. when you're short stock, you have to pay the difference to whoever you borrowed the stock from. attack by shorts and the yields are going higher, terrific place to be, especially inside -- insiders are snapping up stock. bottom line, insider buying plus heavy short interest can equal raging bull buy as long as you avoid situations where the shorts are determined to crush the stock at any cost. let's go to debbie in colorado. >> my husband and i are proud

members of the club, we absolutely love it, so much fun. >> thank you area jeff marks, my colleague, that is fantastic. >> my question for you, i have 31-year-old son finally starting to listen to me so i was wondering if you had some tips and tricks for us to get him involved in the market. he has a goodly sum of money to spend and is really excited about getting involved to >> that is fantastic, if he has science, symmetry can do, i would look at biotech, it has amazing situation. and the biotech companies, i think you should look at vertex. don't forget, you want a diversified portfolio, it is okay to look at some of the stocks you and i both know like honeywell, incredibly cheap. maybe have a stock that is a bit of a flyer like footlocker.

emphasize the science and i think he will be in good shape. we will go to vincent in new york. >> hey, cramer, how are you? >> i'm good, how are you ? >> 26-year-old daytrading two years and looking to do better and go as far with this as he can't? >> your daytrading, full-time occupation. what you want to do is put number in vanguard return fund and vanguard s&p 500 fund and keep putting money away every single month. if you have good day trades, you made a lot of money, take off some of the capital and put it into the vanguard accounts, that is the way i would suggest do it. because i want you to have exposure to the broader market, not just the stocks you trade in most cases, start with insider buying and happy shortage equals why,long as you avoid situation when the shorts are determined to crush the stock that you own. much more "mad money" ahead, i

have tools in my belt to share with you including my method of core position so stick around.

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many of our viewers note the show is all about investing . stocks for the long haul, really short-term trading, much easier to be good investor than a good trader, especially doing it part-time. however, knowing how to trade makes you a better investor, trading amount of core position is one of the most basic and useful disciplines out there, especially in markets that get hit by wild swings. that is most markets in recent years. what is it mean to trade around a core position? let's go through it step-by-step, you

need a stock, it when you like, when you have opinion about, you have bias, a stock he would be is headed higher over the long term. what you're searching for is a great company with shares that might get tossed around by market volatility, even as you believe may go higher if you are patient. if you're just investing and position to stock, buy incremental, buying out wants is arrogance and that would be a riot by the way, the whole process of buying in increments is something we constantly show you how to do if you belong to the cnbc investment club. take something like nvidia, tec maker with fantastic story, makes the most powerful semi conductors on earth we need for cutting-edge applications like artificial intelligence. i welcome them for the long haul but insanely volatile stock. say you want to own 100 shares of nvidia over time, the position would be to buy 25 shares four times over period of weeks or months. that is your core position as investor. say you want to

trade,omething you want to do but is hard to do but cheaper than it has been. home can fit in and out, no stock commissions. i would not recommend pure trading like nvidia. trading amount core position is a different story. let's go back, you own 100 shares of nvidia, assume it is sitting at $500 for the purpose of it every time the stock jumps another 5%, you could sell 25 shares, a quarter of your position, bring up puppets but once nvidia hits 5.5 to 75 shares. scaling, don't sell the final 25 because that is your core position. you wait until something happens to not the stock down, as long as nothing has changed with the underlying thesis, stock up on more nvidia. we have done this for the travel trust, it will happen often. since we are in a world

where stocks get crushed by all kinds of factors, nothing to do with fundamentals, that is what happens. as the stock comes down to the original cost basis, you buy back in increments. we started with 100 shares, let's use increments of 25 and buy back 25% decline in beyond 100 shares of it comes down well enough. small potatoes, up 5%, sell 25 shares, down and sell 25 shares and repeat the process until you go back up. over time, profits go up and that is what trading core positon is all about. a lot of people think trading is incredibly exciting and it can be, if you're get it trading core positon, you should be bored. watching the stock move and training or adding your position accordingly. conjuring the image of trading reckless and irresponsible, trading on the core positon is a height of adjustment. boring, by the way, is good in this business. exciting, save it for the stadium. you can scale the numbers how big your position is, the basic idea is to avoid putting

yourself in a spot where you have too much on the table in case the stock gets swatted at or too little to take advantage of any upside that comes your way. trading around core positon is important basic strategy everyone can use, even those of you who find the notion of trading apartment. less trading and more supplement to investing. here is the bottom line, now you know the basics of how to trade around a core positon, yet another method to my madness, one that allows you to generate lots of small games, that i'm telling you will add up over time. "mad money" is back after the break. coming up, cramer reveals his tools to the trade of buying a stock, what about selling them? cramer is breaking down had it get out of the stock at the right time when "mad money" returns . [thunder rumbles]

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i got one more trick to teach you tonight, one more method of my madness. i want to talk about selling how do you know when to sell that stuff? it happens all the time, had to get out before the party ends so you're not one of the last people to get stuck cleaning the mess? this is a question that needs to be answered because a lot of money to be made by owning hot stocks with lots of momentum. when you play the momentum game, you need to know when it is time to leave the table. there are always naysayers and eventually the naysayers are almost always proven right. sooner or later come all the hot stocks explode. remember 2021, collapse of 2022, that's what i'm talking about. the collapse occurs later rather than sooner. all

of the negative talking heads who kept you out of momentum stocks with recklessness disguised as prudence actually cost you a great opportunity to make money. people shy away from the stocks because they don't know where they will stop or where they will top out. it is understandable. i would be if i don't buy them too if i did not have the discipline that let me know when to get out. luckily i do have one and you are about to learn it. when i'm talking about hot stocks, i mean hot spectrum stocks, stocks of companies with low market capitalizations. the stocks begin with the research coverage from major wall street brokerage houses, they often don't have earnings or sales, never buy these for trust. these can go up for a long time, catch fire and sand fire for years when they have the wind at their back. the key to figure out when interest has peaked and it is time to sell is not from the stock, it is by watching the analyst coverage. you have to use your own judgment here. a good rule of

thumb is when one of the hot stocks has a half-dozen analysts covering it, the run is going to peter out because the stock in question is becoming too well-known. it is a rare speculative winter that keeps winning after it gets big. you can find out how many guys are on a stock by looking it up online. this is a hard to find information, the formula worked for me as long as i can remember. as far as i can tell, works because the number of analysts on a stock is a good gauge of how much awareness and interest is in the name. hot stocks get tapped out when nobody is left to be attracted to them to go buy more. all the people would be interested buying have already bought. they come out of nowhere attracting more attention, more and more backers and eventually everyone wants a piece of this stock has a piece of it already. that happens and it runs over and it is time to go home. if the meme stock guys get their hands on it, take advantage of their enthusiasm to ring the register, it s a great sign you want out because they can only push the stock up

so much before they run out of firepower. of course, other situations stock scott faber all at once because of how much attention they get. 2021, huge run anything related to life fields, carmakers, battery, charging stations, enterprise software stocks a lot of it fueled by easy money with near zero interest rates a lot of equity kicking around anna had to go somewhere which is why so many money-losing companies had redhawks.-- redhawk -- red hot stocks. near zero interest rates to come to an end. at that point, we knew about to be drained out of the entire market because that is what occurs. very quickly told you new environment where anything speculative was toast and you want to own real companies that make things or do stuff at profit. not the most elegant way to phrase it. places got obliterated in 2022. putting aside the interest rate

issue, the fed is not tightening and safe to speculate, watch how many analysts are following the little speculative stocks to know when the run is going to end. bottom line, red-hot speculative stock it's too much attention, he needs to rally on its last legs because there are only so many people willing to buy these things and eventually the bulls run out of firepower. stick with cramer. >> mr. cramer, thank you for everything you do . >> you're such a wonderful source of information with your teachings. >> thank you for all of your advice and saving us from ourselves. >> your advice let me quit a job that i hated you i love you to death. >> thank you for making this money and more important, thank you from keeping us from losing money. with gold bond's age renew formulations

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i interviewed some of the smartest viewers in television, listening to your pitches and what americans want to know about. joining me is jeff marks, portfolio director of cnbc investment club. we are answering your burning questions and hastag mentions. if you're not a member already, what are you waiting for? let's start right now with tim from alabama. how do you decide whether to take profit rather than keep a stock longer to get rebuilds? these are hard issues because you have to worry about that kind of thing with your accounting professional because what i care about is whether the stock will go up or down and i believe if a stock will go down, you should take it off the table even if you have a

big gain, that is what matters to me. >> of course you want to see qualified advice for something that but for the charitable trust you follow along with at home, we don't play the tax game too much because every thing gets donated the gains and donated to charity at that end of the year. >> always felt from real money, my first book about investing, never fear the taxman, fear the losses. next up, taking a question from russell, i always try to follow your advice to buy stocks in portions rather than all at once. very good. often the stocks never pull back to buy more, i ended up with lots of different stocks make it hard to match. what you recommend? >> this is another one, this is a discipline i came up with which says, it is a way to figure out whether you missed the move or not. if you come in and the stock keeps going up, no doubt about it you are late, there's nothing you can do if you don't

get it all in. i accepted that consequence. if i'm late, all i do is have a small gain, . >> high quality problem to have, continue do the homework, still hold them especially if the prospects are quite good. it is a challenge because you want to spread yourself too thin with a whole number of different stocks. if they are going higher, it is a quality issue that we deal with sometimes. >> is a discipline, what happens if you buy all at once and it goes down? there's a good chance i can happen and we are trying to avoid that. that is the real worry. take a question from randy in ohio, i know went by and celebrate goes up, if bonds do sell, why would it impact stocks ? there are many different ways to answer this, one is interest rates go up for something that is risk-free, bond, that has greater appeal than a dividend which may be equal because dividend, you know what, only part of the equation of what a stock returns.

if the stock is down big, you wipe out whatever gain you get from the dividend and long-term considerations, as you know, just about the value of a bond versus stock further down. >> right, competition for dollars like you mentioned. interest rates are also used in a discounted cash flow model where investors look at the cash flow is out, estimate them, discount them back and when the interest rate is higher, they get discounted at a higher rate that lowers the pressing value and value of stocks. there are also things like financing cost, if it is used, a company relies on financing to sell their products, higher rates might hurt their business as well. >> you have to think stocks are not as competitive in many different ways than bonds if rates go up. that is the way to look at it, even if you don't actually understand discounting cash flows, you have to take it for granted that is what occurs.

lynn from virginia wants to know, if you have five shares of something remaining into recommend taking profits, should i close out the position or let it ride? these are questions that are so hard because five shares reminds me of the tail end of when we have some wind. what do you do? the five shares is really sub if the stock is down, you can buy more. if the stock goes up, recommend cell, i would get rid of it, i really would. let's move on and find something better because there is always something better. >> it is absolutely a fair debate, there growing the dividend, grain profits, and outlooks are bright, you could sell one or two but you don't want to fall into that trap from the earlier question we just had about managing too many positions. there is always cross disciplines happening right now. >> that is one of the things people don't understand about investing some of there is no right or wrong, often two rights that compete against each other. question from kyle who asked,

give a similar person investing funds versus stocks, or would you dollar cost average? this is very funny because this is where i have two disciplines. what i like to do upon putting money in every month, if there is a month down more than 10%, i double. let's say august is down 10%, i take july's contribution, keep that, august contribution, i take september contribution and take september and august together and i feel like that is a good level so you have one-12th, 1-12, 2-12th . >> prices should be more attractive, you do not run from a sale at a department store. i would say if index funds, it is more about time in the market than trying to time it oversold or bought, you want to be invested.

>> absolutely, really important issue. we do not, by my method, try to imply we are timing the market, try to put a more money and it at one level but do the rest. that is the way to do it. what can i say? there is always a bull market somewhere, i will find it just for you 12: . right now on last call from bad to worse. a major upset in the cyberattack crippling car dealerships across the country. we have fast-moving developments. tesla's next historic moment. dan ives out with a big new call and he is here. an offer he can refuse? espn offers smith a jaw dropping deal but what he wants could make star athletes jealous. we have all of that