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tv   Mad Money  CNBC  August 5, 2016 6:00pm-7:01pm EDT

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off between bears and bulls. >> mike. >> apgss are fairly priced to do that. you could buy a straddle unless you're just wanting to make a bullish belt. >> dan. >> i like carter's disney. zpl we're off my mission is simple. to make you money. i'm here to level the playing field for all investors. "mad money" starts now! hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, i just want to help you make money. call me at 1-800-743-cnbc or tweet me @jimcramer. nice to be able to think again. to look at individual companies, study their reports, make
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decisions. i like this next week. and now we're headed into an incredibly thin territory, it's a joyous time, because you get to mull things over in a game plan. and that's what we're going to do when we come in monday. monday morning we're going to be examining allergan. it's now $40 billion in cash. from teva so it can reinvent itself in a fast way. it was created by the merger of allergan and -- but it's been held up while they waited for the sale of the gigantic bid to go through. it is the fastest-growing pharmaceutical company i've followed.
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how can it be? it's probably why carl icahn made a big stake in the company. we own allergan for my charitable trust. and our view is that saunders will put that money to work in a responsible and additive earnings way. we've been following saunders statements closely, because he's about as clued in as any wone i the industry. why don't i talk enough about tyson? i'm too old school. i remember it as a commodity chicken company, and i cared more about the price of chicken feed than chicken sales, then they made the inspired purchase of hillshire brands. and it's been going great guns ever since. the old days of blockbuster pharma take overs, no company
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was more inquisitive, some would say recklessly inquisitive than valiant. it was a simple model. buy drug companies, cut r&d spending. and raise taxes. when investors started getting wise to this, valiant suffered far more than others. its old formula, i would say, is definitely dead. and now valiant seems to be fighting against extinction, because it piled up more than $30 million in debt buying up all those companies. the man who built it is gone. in his place? joe papa. maybe suggesting that it could be rolled back. now i don't care for the
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company. that's a universal judgment. can papa clean up the mess having hocked the family jewels, including boush and lom. i think we'll get a real good read on tuesday. next up, i want to talk about something called pin action. that's the impact of one company's words have on another company's stock, typically in the same industry. sometimes pin action can get totally out of control. this past wednesday a couple firms said some good things about couch. kate spade reported an incredibly horrible quarter. but this is where information people can play a pivotal role. i think one of the reasons kate spade is doing so poorly is
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because coach is doing so well. to me, that suggests the turn is for real. so let's pay attention when coach reports tuesday morning. there was too much buying pressure underneath for me to think this was a bad quarter. after the close tuesday, wow, the big one. the looming earnings report from disney. most of the media companies have acquitted themselves quite well, but disney stock is still off its highs. the issue isn't whether espn has recovered its growth, in this new on demand world. will they stop impacting disney share price. that's the journey disney stock is on now. you won't even notice the espn potholes. but those who think more short
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term, they will be driving it right into the poorhouse. this is the new team's chance to knock off. back in april of 2013, this company rejected a $205 bid saying the bid -- i love this -- significantly undervalued the company, end quote. that's a little more than double the current stock price. so maybe it wasn't so undervalued after all. i want to see if pair goe can return to its fwrglory days. restaurants haven't done to well. price wars and labor costs are rising. i like wendy's. speaking of chaotic, the stock of shake shack has never really recovered from the bizarre
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trading it had as a result of a short squeeze, because people liked the burgers so much. while the concept is fabulous, shake shack has been widely perceived as overvalued. it has a capital of $1.5 billion. and i think that's a high price to pay no matter what number they report after the close. thursday's retail day. this might be set up for some sort of comeback move if the companies can say anything compelling. but because of amazon, i don't know if they can. macy's, kohl's and nordstrom have been monamong the weakest performers year after year. if one could turn, i would think it would be nordstrom, because of its rack outlet chain. finally, jc penney. i think there's a slow turn at hand here. i won't believe it's for real until i see some of those new
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shares get retired. now it's too early to tell the impact of these changes in management, what they're doing, but i do think penny's management has a plan to turn around, with more of an emphasis on home and cosmetics. we can finally catch our breath, but i see plenty of companies that have caused great pain for shareholders of late. can they find redemption? for some, yes, but not for all. let's go find the ones that can make a come back. mary in illinois. >> caller: boo-yah, jim. i wonder if you would endorse the stock blue buffalo pet, blu. >> we invollove, love, the pet . buffalo reports next week, and their stock went down a little bit. why not wait until after the
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report before you do any buying. read not greed during earnings season. track down the conference calls, and let's see if some of these beaten-down names can find redemption. i'm looking long term, whether you're 18 or 80, i'm going over the steps you need to prepare yourself for the future. plus, how big a role should bonds be playing in your retirement account? my advice is very against the grain. and it's the action many investors take in a serious selloff. and unfortunately for your retirement account, it's dead wrong. i'll help you avoid a major mistake. so stay with cramer. don't miss a second of "mad money." foll follow@jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to "mad money" @cnbc.com. or give us a call at
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every night i come out here for two big reasons. the first is obviously, i like the attention. but the second and more important reason is i want to help you build and preserve your wealth. we live in a world where it's increasingly difficult to become rich if you weren't born that way. and love it or hate it, i believe the stock market is the best ladder we have for social mobility. there are millions upon millions of people in this country, but there aren't enough companies to pay you a salary bad enough to make you rich. even if you saved every penny you earned. if you want to become really wealthy, planning your financial strategy for an entire lifetime. even if you don't have a super-high-paying job. as long as you can save a decent chunk of your paycheck and invest it wisely year after year, can you make your wealth grow, so you can become if not
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filthy rich, financially independent, meaning you don't have to worry about your job security. and you'll be able to retire easily without the need to rely on social security, which for all we know might not be around with some of our younger viewers hit retirement age. that's why tonight, i want to help i figure out the best way to manage your money in order to help achieve real financial independence. but in order to do that, we need to talk about the concept of generational investing. because the kind of strategies that make sense when you're young and in your 20s are very different from the sort of th things you should be doing when you're middle aged or a senior citizen. we don't talk enough about that on "mad money." there's one concept no matter how old you are. that's the fact that you will never have a better opportunity to make your money work for you than by investing in the stock market. even when we're in a bear
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market, when the action is treacherous and volatile and it feels like stocks go down every day, when you take a long-term view, it's easy to see that the stock market is by far the most effective wealth creation way out there. it might crash like it does on occasion, but if you take the lod longview, the very longview, stocks tend to go higher. and i doesn't say that as a p y polyanna. despite multiple bear markets, the dow stands what you might call well above that mark, that represents a pretty fantastic amount of wealth creation. and that's why i'm so adamant that no matter how old you are, no matter how well thialthy you
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you should have some of your money in the stock market. can i give you some historical perspective right now? if you go all the way back to 1928. right, before the great stock market crash, through the end of 2014, the average annual return for the s&p 500, including dividends is about 10%. show me an asset class with a better average return. you can't do it. stocks aren't just the best game in town, they're the only game in town if your goal is to grow your wealth. for some of you who want to get rich quick rather than get rich carefully, see what i did? that average 10% return may not seem like an impressive number. some would say thanks for nothing. you're wrong. forget the fact that it's more than double what you can expect from a 30-year treasury.
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let's examine that 10% figure in absolute terms. when you're taking a long-term view, which is what we're doing tonight, meaning planning for your entire life, racking up a 10% from a simple index fund, which you know i prefer seems to seem pretty darn impressive. over a long enough time frame, that 10% figure has held pretty steady. but to really understand the asset class, you need to view this number through the lens of what's known as compound interest. sometimes i'll talk about this as the magic of compound. if you invest $100 in the s&p 500, and it gains 10% in the first year, then you've got $110. after another year of 10% gain, you've got $121, a third year of the same gives you $133. the gains keep getting larger
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and larger, because each year he you're make being additional money off the previous year's profits. eventually, you'll double your money in roughly seven years. now for those of you who are really young, right out of college, waiting seven years to double your money seems like an eternity. i've got more risky ways of growing your capital as you stay tuned. but as you get older and an investment that pretty consistently take your money up in seven years time and double it, it becomes pretty incredible. that's the magic in compounding works better the younger you are. you have more time for your money to grow. but young people are less likely to be impressed. that's why george bernard shaw famously said youth is wasted on the young. let me do my best to make these numbers sound more impressive. suppose you're 222 years old an
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just entering the workforce. you have more than 40 years before you are expected to retire. let's all suppose that the next 40 years aren't too different than the last 40. in that case, if the a. return from the s&p 500 holds steady at around 10%, in four decades, your $10,000 investment will turn out to be worth more than $450,000. that's enough to send multiple children through college, buy a nice house. pay for a huge chunk for a pretty ritzy retirement and that monster gain didn't require any kind of stock picking. it doesn't require you to trade. or time the market or even do any research in individual companies, which i know is hard for most of you.
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you just need to invest in a low-cost s&p index fund or etf and wait. granted, you're waiting 40 years, but $450,000, when you're approaching the age many people retire? that's more than the investment you made when you were young and had your whole work life ahead of you. so please, i'm begging you. a little money saved and passively invested in the stock market is the easiest way possible when you're young, to turn, can turn into a massive fortune when you're old and have all sorts of additional coasts and responsibilities. and all you have to do is let it sit on the sidelines. ideally in a 401(k) plan or ira. the same logic applies if you're 30 or 40 or 50, but you get a lot more bang for your buck if you start younger. which brings me to the bottom
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line. even if you don't have time to do homework, the stock market is still the best tool out there for growing your wealth. the earlier you start investing, the bigger your long-term capital gains requecan be. everything gets reinvested. let's go to brenton in new mexico. >> caller: big boo-yah from the land of enchantment. how are you. >> i'm doing good, how about you? >> caller: i'm doing good. mutual funds and index funds claim minimizing risk. >> right. >> caller: inherently isn't it fair to say that they have other risks that you would avoid with a single-stock portfolio? >> absolutely. and i think that that's why i always suggest there be two portfolios. there should be that capital
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preservation and somewhat appreciation fund, we put that aside for retirement. and that should be in a diversified fund, i prefer it to be in an index fund. and the rest should be "mad money." a sliver of it, though. "mad money" would pick individual stocks. that's why we call the show "mad money." i don't want the bulk of your portfolio in individual stocks. but i want you to be able to pick stocks. brian in oklahoma. >> caller: thanks for having me. first-time investors. how do you value a company's, one company versus another? measure of their value? >> well, we spend a lot of time in "get rich carefully" in talking about that. what you're really trying to do is measure the future earning stream. you request figure ocan figure pay for that now. if you take a longer-term view,
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can you figure out what it would give you for dividends and capital gains. dividends tend to be for preservations and the capital gains is for the appreciation stream. i want you to have a little bit of both. but you have to be thinking about what a company can earn in the future. that's what dictates stock prices. this show is about building and preserving your wealth. and the stock market is the best way to do that. a lot more ahead, including the four-letter word of the investing world, what it is and why the conventional wisdom is all wrong. plus, i'm not pulling any punches. >> what you absolutely must mott be do being and navigating the rules you need in the bear market. so stay with cramer.
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it's time to address a major issue that i have to admit i
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don't spend enough time discussing here on "mad money." i'm talking about the question of stocks versus bonds. there's good reason you don't hear me talk about investing in bonds very often. the fact is, ever since the great recession, interest rates have been held down to incredibly low levels, therefore bond yields that you get from, say, u.s. treasuries have been paltry. in general, for the last few years, even when the stock market has been getting absolutely pounded, bonds simply haven't represented very good values versus equities. that's why i've so often castigated you about the idea that excessive prudence can be the most reckless strategy of all. because, if you invest too much of your money in safe, virtually risk-free u.s. treasury bonds, you've basically been ensuring that you'll get a very low return on your investment for many years to come.
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all in all, if you want to grow your capital, and after all, that's what investing is supposed to be about, then, like i've said before, stocks are still really the only game in town. even after, what can i say, so many years? i don't want to make it sound like i'm pooh-poohing bonds all together. there's absolutely a place for bonds in your portfolio, especially as you get older. here's the crux of the issue. even though i believe stocks are the best way to grow your capital over the long term, at the end of the day, stock investing and bond investing are about two entirely different things. stocks are the tool you use for capital appreciation. meaning turning your money into more money. bonds are all about capital preservation. they protect your money and give you a nice and steady, all be it small return. it's still enough to offset inflation for the most part. you invest in stocks to generate
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even greater wealth. that's what it is. you invest in bonds to protect whatever part of your wealth you simply can't afford to lose. there it is. which brings me to the generational aspect. depending on how old you are, there's a huge difference in how you should approach the idea of putting your money into bonds. when you're young, investing's all about taking risks. i've explained how people in their 20s and 30s can do that. but as you get older, you have move and more wealth. and you simply can't afford to lod lose it. u.s. treasuries are the closest thing to risk-free investing. but you would need to own a lot more bonds earlier in your lifetime that i don't think. the highest yields, their lower terms don't produce much in the
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way of capital appreciation. for the sake of this example, let's say they're 33.5%. that is much higher than the 3.25% range. with that 3.5% yield, as long as you reinvest your coupon payments back into treasuries, you might double your money, in 20 years. remember the average historical return for the s&p 500, the benchmark for u.s. stocks is 10% annually, which will let you double your money in a little more than seven years. so if you're under the age of 35 and you own a bunch of bonds with the idea that they will slowly but steadily make i money, i think you're being way too cautious. i know it puts me out there, but i've been around. that's how i file. even in your 401(k) and ira, you want to be heavily weighted toward stocks when you are young. allowing your gains to compound tax free year after year.
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but as you get older, owning treasuries, especially in your retirement fund becomes absolutely essential. because unlike the stock market when you can lose enormous amounts of money in a blink of an eye, bonds are save. you want to funnel into treasuries, ideally, you do that by putting your cash in a cheap bond fund. let's get down to brass tacks. precisely how much of your retirement portfolio should you keep in bonds versus stocks? that depends on how old you are. i don't think it should be until you turn 30. if you own bonds at the age of 25, you're wasting your youth. it's better to put your money in the stock market where it can grow. in your 30s, i'll let you put 10% of your money in bonds. once you're in your 40, i think
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you can go up to 20% to 30%. in the 50s, 30% to 40%. in your 60s, all right, take it up to 40% to 50%. now even if you retire though, i still think you should kind a substantial chunk of your portfolio in the stock marquette. post-retirement, you should increase to 50% to 60%. you can't afford to take too big of losses with your investments, especially since you're going to need to start spending the money in your retirement account. with that said, i think keeping a third of your monday kney in makes sense. some part of your portfolio should always be trying to create more wealth in case with you live longer than you expect. in other words, going all in on bonds once you retire is against
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your own longevity. who the heck wants to take that kind of bet? here's the bottom line. for younger investors, putting your money in bonds is a fool's game. as you get older, you should gradually increase your bonds exposure to the point where 40% to 50% of your money is in bonds when you are in your 60s, but even if you retire, you should keep owning some stocks so that some piece of your capital can continue to appreciate over the long term. best case? you live a very long time. and that extra money comes in handy. let's take some questions. how go nasir in pennsylvania. >> caller: boo-yah, jim. >> how are you? >> caller: i'm good, a big fan of your show, and i love your book "get rich carefully ".
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given how important cost is. >> a lot of people feel like they want to draw a line in the sand. they want to make a statement buy or be in a position where they kind of got rid of it. they bought it and they put it away. that's why i say take into account human frail at thty. if the stock goes higher, what a terrible high quality problem. if it goes lower you have room to buy. i like to buy in stages. in all my books i talk about stage buying. don't be overconfident. brian in new york. >> hey, jim, how are you. >> caller: i have a 401(k) plan from a previous employer. and i'm trying to decide whether to put it in an annuity managed by an insurance company or a traditional ira.
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>> i want you to do it yourself. i'm not against anything that people can build wealth, but my experience has been that a lot of annuities have fees that eat things up. maybe there's some that don't, but i brielieve in self-directe investing. i like to take control, and the ira lets do you that. as you get older, you can add exposure to bonds. still much more money ahead. including a playbook for when the bear market takes a bite of your money. if you want to ensure a strong retirement, you're going to want to listen to my advice and take action tomorrow morning. i'm answering the questions you've been sending me on twitter. so why don't you stay with cramer! .
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thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business.
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tonight, rather than focussing on the day to day vasis attitude of the stock marquette,cket i want to take a longer-term view. i'm talking about taking a 20,
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30, or even a 50 year view. there's no such thing as a stock you can buy and hold for the next decade or two. it doesn't work like that. i wish it were that easy, it's not. it means no matter how confident you are in the company you need to keep checking up on it on a regular basis, make sure nothing's going wrong with the story. however, just because you can't pick a few stocks and ignore them for the next few decades, you need to zoom out a bit. and when you start examining stocks over a multi-decade time horizon one thing becomes readily apparent. if you know what you're doing, a bear market can simply be a different kind of opportunity. that's right. when stocks are getting slammed. when they're getting hit everywhere you look, when it seems like the losses will be endless, when the shares of individual companies can't mount significant rallies in the face of positive news, you have to recognize that you could be
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getting a terrific opportunity to pick up some high quality stocks for the long run. into the weeds. i'm not giving you a license to buy stocks indiscriminately, but when you are faced with a bear market, meaning the averages are down more than 10% from their highs, and they seem like they could go lower, it probably makes more sense to start buying more stocks than selling them. of course whenever you buy during the bear march kiquettck to be careful. gradually laying into your favorite stocks. buying small chunks incrementally, humility please. over the very long term, you'll probably find that you've taken
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advantage of a terrific opportunity that most people were too afraid to poiunce on. but i need you to think longer term. you don't believe me, just look at this chart of the s&p 500 over the 10-year starting with fall 2005. look at those hideous declines during the financial crisis in 2008/2009. if you look at that and build position in a cheap s&p 500 fund, within a couple of years you've made a killin'. how about that nasty bear of 2011. this is why warren buffett seems so sanguine. he is long timerized. and he can take any level of short-term pain to get his hands on long-testimorm gains. if you're a hedge fund manager who needs to be up for the day or the year, you cannot afford to approach a bear market as.
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you will lose enough money in a short period of time. go read confessions of a street ad. but the vast majority of you are not running hedge funds. you don't need to make money every day or even every month or year. you need to rake in massive gains over the rest of your lifetime so you can have enough money to send your kids to college. this is not an excuse to hang onto loser stocks of loser companies simply because one day you hope they will turn around. the ugliest, most vicious markets, they will always create opportunities for smart investors, as long as you're patient enough to take advantage of them, slowly, because if you pounce too quickly, you'll end up way too close to the top. the other caveat, if you're not playing with an s&p index fund,
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you have to be careful what stocks you pick. you need to do the homework, make sure you own the stocks of those that are doing well or at least the conditions thmpanies doing okay. you must absolutely not buy the stocks that are right in the blast radius of whatever's causing the decline. think 2008/2009, oil and natural gas that started going down literally in the fall of 2014. you don't want to own the companies that are causing the weakness. instead, you should search for collateral damage stocks that are going down because of the s&p futures. if you own anything in the blast zone, please don't hesitate to -- >> sell, sell, sell. >> and swap into something safer. you need to have cash on the sidelines, otherwise, you'll be shuffling money into different stocks.
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that's why i'm adamant that you have some cash in the portfolio, and the better the market's going the bigger your cash position. that way when things inevitably go wrong you'll be able to use the stocks to buy bargain basement prices. you need to remember the big bear market declines can actually turn out to be excellent buying opportunities as we've seen since we started the show. as long as you only purchase high-quality merchandise in small increments on the way down. stick with cramer!
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all night i've been telling you about the best way to approach investing from a long life, long generational perspective. how to manage your money when you're young, when you're middle aged. hey, when you, haven't you heard 60 is the new 50? and even once you retire. but there's another aspect to generational investing that i really got to stress here, and that's the need to get your kids interested in managing their money and the stock market. i say this to parents with children of all ages.
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while i love the public school system, you cannot rely on the public schools or the ritzy private schools to teach your kids about money. they can do a bang-up job with history, geometry, great. but if you want your children to be fluent in the language of finance, you have to do it yourself. i get the idea that it is to cloe tid yan for most teachers. your typical high school health class will teach your kids how to put a condom on a banana. but nobody will explain why it's important not to keep an extended balance on their credit cards. students get bombarded with credit card offers that can seem
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irresistible. thousands of dollars in credit cards on top of student loans, they could be in debt for decades. raising financially responsible children isn't just about being a good parent. it's about not being hit up for cash when your children are in their 30s. at this point you need to do it yourself. you need to have some long, boring conversations about the dangers of high-interest rate debt. and the kind of money someone can easily rack up on a credit card. but in my view, the best way to make all this dull personal finance medicine go down is with a spoonful of stock-picking sugar. in orde in other words, i recommend giving your children gifts of stock. i've been using it since the show started is disney. give them a couple of shares a
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year for the holidays, starting when they're old enough to appreciate the big movie franchises, "frozen squ", "star wars," whatever. not to mention a terrific theme park business and properties. by the time your kids are teenagers, i think their disney holdings will show a nice gain. there is no better way to demonstrate the power of saving money and investing in stocks than having your children make money in the stock market themselves and follow it along. as much as i like disney, you don't have to go with mickey mouse. it can be any high quality stock that's interesting to kids. teach them a different way of looking about money rather than cash as being something to be spent. you need to teach them that money can be something to be saved and invest and cremakree e money. if you don't want to do did for
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your children, do it for yourself. because kids who can manage their finances are kids who won't be begging you for moolah even when you've gone into retirement [ hip hop beat throughout ] [ fans cheering ]
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♪ olympics 2016, let me get you on my level. ♪ ♪ so you never miss a moment, ♪ ♪ miss a minute, miss a medal. ♪ why settle when you can have it all? ♪ ♪ soccer to wrestling. track and field to basketball. ♪ ♪ fencing to cycling. diving to balance beam. ♪ ♪ all you have to say is, ♪ "show me," and boom it's on the screen. ♪ ♪ from the bottom of the mat, ♪ ♪ to the couch where you at? ♪ ♪ "show me the latest medal count?" ♪ ♪ xfinity's where it's at. ♪ welcome to it all.
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comcast nbcuniversal is proud to bring you coverage of the rio olympic games. okay, cramerica, it's time for me to check out the twittersphere and take a look at some of tweets you se sent @jimcramer. first up, we have @fridge 93.
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you talk about research. what are pieces of information we should look for when stock picking? the first thing is i want you to know the product, what it does and like it. the reason why is because a lot of times stocks go down if you buy them. if you like the product you'll be more inclined not to panic and get out. i'll tell you how to rate a stock, but can you do it on a numbered basis and figure out where it should stand versus others, but you've got to like the company first, or i promise you, in the first big selloff you'll become a seller, not a buyer. i don't want that. okay. the next question is from patrick. it's suterra. @jimcramer. is it best to cost average index fund or wait and buy on market
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down turn/mad tweets? this is the way i do it. i try to do it 1/12 a month if i can. but, if there's a big break in the stock market, i accelerate some that i would do later in the year and put them to work in that break, even up to a third of it. so in other words, i like to take advantage of the declines and accelerate what i've put in. and i've done that for years and years and it's worked for me. next up is larry blumen. my wife said what would they do without cramer? my wife said the same thing. all right. now look, i'm a teacher. got some books. i try to come out here every night, but it's really important for people to know us. what would you do without yourself? see, this is about empowering you. it's not about giving you ideas. it's about how to look at them. a lot of people look at the show who haven't watched it over the
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evolution and say oh, he's traded this and that. i hope that you know that it's the opposite. longer term investing is the way to make money. index funds and then "mad money" and doing homework and trying to figure out how to do it yourself. last is jeffrey hope @jimcramer. would you mind sharing your sunday stock routine, please. okay i get this thing from standard & poors. it's pushed to me via e-mail, it's hundreds and hundreds of charts. i go over each one. i do, i have a file, says good, bad, question mark, try to figure out why that went up and then story idea for show. and i write down each one and where they are. and where they fit. and then when i'm done i tend to do a piece for real money, a long piece. that's the pace on the street where i look at what trends i see, and then for the rest of the week i send my staff which
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stocks i don't understand and why and some theories about why we should be doing certain pieces. and it takes almost all sunday except for when the eagles are playing. stick with cramer. so, without further ado, let's roll up our sleeves and go over these winners and losers. it's clear that this huge surge isn't just about the mad hunt for charmander or other pokemon. the internet is a beast, and you've got to feed it or it eats you. on the eve of olympics in rio, i'm continuing, [ buzz ] it's a bona fide secular trend. >> it's a great pleasure to be
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on your show. i know you asked me what we pay michael jordan. i won't tell you what we pay him today, but the original contract we paid him $250,000 a year. "fortune" magazine says there's no greater indication to show that nike's lost its way than to pay that much money to michael jordan. >> i think the company has come around. marcel's done a terrific job. i wouldn't leave it. >> he has been a tanonbeliever. i think the biggest accomplishment is getting jim cramer to be impretsed. >> i'm jim cramer! see you tomorrow!
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i like to say there's always a bull market somewhere, i promise to find it for you right here on "mad money."
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i'm jim cramer, i'll see you next time! '4 male announcer: the economy is going through tough times. many hard-working americans blame wealthy ceos, out of touch with what's going on in their own companies. but some bosses are willing to take extreme action to make their businesses better. each week, we follow the boss of a major corporation as they go undercover into their own company. - this is john. he's gonna be working with you today. announcer: this week, the ceo of america's largest family-owned theme park company poses as a new recruit. - oh, you're a rookie? - yes. - i am a rookie. - [laughs] - whoa. - okay, hold on. announcer: the boss will trade in his executive office and expense account for a beard, some boots, and a quacker. - [quacks] - no quacker, no ride.

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