protection. >> you guy facebook on a breakout. >> never play without protection. thanks for being here. >> in for melissa. "fast money" again tomorrow. jim and "mad money" starts right now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, i'm just trying to make you some money. my job is not just to entertain but educate and teach, so-call me at 1800-743-cnbc or tweet me @jimcramer. every day i come out and tell you what happened during the day and what you can do with the

information. i do it to help you be a better do it yourself investor or better client. i do it with a spectacular team of producer with executive producer gina giwhose been withe since inception and look and feel of the show to the research. we have a team that helps me with memos and a head writer, the only writer and been the only writer since inception since he was a freshman in high school my sister's son, my nephew. we've been doing it for so long we take it for granted and tonight, i'm going to change it and correct it. tonight i want to talk to you about the show, its evolution and how you can best use it or worse, misuse it and i'm doing so because there is so much we throw at you you might not be able to use it as effectively as

we would like. i know this because i talk to enough people about the show and interact with people through e-mails and twitter and i have a good idea why you come here and what you really want. the show has evolved mightily since we started. the show was an out growth of a radio show, where we first heard boo-yah and i started called the street. still going strong. still write for it every day under the page site known as real money and i manage my charitable trusts. when we started the show, people were thirsting for specific investment ideas, i was happy to compile. the stock market changed over time. we got hit with a great recession that challenged the asset class of stocks, meaning stocks is a way to save and make money. we had many companies, big companies in the financial world destroyed by the downturn because they didn't have enough money in the bank to handle the losses from a dramatic decline in economic activity a credit

crisis. i'm proud of the fact if you watch me, you might have avoided a lot of the downturn because i shotted from the rooftops the fed was nuts, nuts and the situation was far worse than anyone realized. i find it a tad ironic while the fed acknowledges minutes, i was the only guy saying things were falling apart and the only guy in the media that was vilified for telling people to sell. that era changed. and it changed me. it changed the show. it was more of a metamorphosis, because i added some language at the very top of the show meant to describe the new reason for being. i now say every night in some form or another the show is meant to educate, entertain and teach and i say it in different ways at different times each night. a total break in a lot of ways because i think it's not enough to give you stock ideas. in fact, we've minimized them over the last decade. we want for you to be able to

understand the process and to pick them for yourself. or more important, we want you to understand the market enough for you to make a judgment whether you can do it yourself. with me, i love individual stocks, have for years and years and years. i think they can be tremendous vehicles that can lead to great wealth. our show's identification with certain stocks from get-go like apple hasn't gone unnoticed but since we changed the show, we leave behind new ideas and hot ideas and tried to give you themes that allow you to invest in more fertile sectors, themes i hope i can make come alive with analogies, sports to do homework post the great recession or living longer through healthy eating habits, social, mobile, cloud, connectivity and investments. i've written many books over time, proud of that. i know the confessions of a street addict written four years ago before the show begin remains a favorite. i think get rich carefully is

designed to be this new show's compani companion, a lot of what i talk about in the show if you're having trouble, "get rich" will do it. i'm csure the market is hard. despite my attempts to make things clear, that's why i e emphasize i'm not just okay with index funds, but i insist you use them. i would not own a single stock until i put away at least $10,000 in an index fund through your ira or 401 k. i have addressed saving for retirement and saving for tuition and emergencies, i have not ever point blank warned you off individual stocks. i would vastly prefer you to invest than say mutual funds. mutual funds don't take the percent take they do. there are individual cases where individual managers acquit themself and move and records with change and past performance is no guarantee, all that jazz, which brings me to point number

one of the show. i'm not a salesmen for individual stocks. i'm a believer in the asset class of stocks as part of an overall way to save money for retirement, tuition, vacation, anything your heart desires. i want you to have what's known as exposure to the stock market and i try mightily to convince you it is worth it to do so because stocks have indeed created so much wealth over time, if you don't believe me, read warren buffet's report that describes why stocks are tremendous as an asset class to own and he makes a great brief for them. why do they work? they represent the progress of business in the prospects for business going forward. they represent the wealth that companies create and the sharing of that wealth with shareholders. you get to be a long for the ride and i want you to be along for the ride in a responsible way, which is most definitely owning an index fund. i'm partial to the s&p 500 but a term that encompasses stocks and

fund houses. if you aren't offered one, of course go to the s&p 500. for those that don't get it, here is my bottom line. the show changed from when we picked stocks for you to where we educate you about stocks so you can understand why an index might be worth investing in. there is one problem, we know you like stocks, too, or you wouldn't be watching or need to watch which is why when we come back, we'll explain why we bother to delve into individual stocks before we progress and profess undying love for index funds as the first way to go. larry in massachusetts, larry? >> caller: jim, i know i've mentioned it before but i just want to tell you how much your nightly focus lessons remind me of roosevelt's fire side. >> thank you. that's something my mom says, just say thank you, thank you, larry. >> caller: we need you out here, jim. >> thank you. >> caller: here is the question

for tonight, when does an investment turn into a trade? we don't accumulate too many stocks to monitor, how quickly and what percentage gain do we unload a small position, which has gotten out of control, high quality problem and conversely help and at what percentage loss do we admit we got it wrong? >> okay. i have a short hand for these i like to take off my rules have evolved. when you're up 50% you take off 25 and when you're up 100%, you take off yes, all of your initial investment and play with the house's money and say thank you very much and you got a good gain. investment into trade. we don't do that. if something is an investment, it is an investment. if you didn't get enough in when a stock came down and moved up, you can kick that out for a trade. it's when you didn't get the whole position on. greg in new york, greg? >> caller: jim, i feel like we speak every day. how are you doing? >> quite well, how about you? >> caller: i just got a quick

question, me and my friends are young investors in our young 20s, is it worth taking more risk when you're younger and you don't have enough money to put more, you know, put more money on the line and try to seek the higher profit -- >> listen to me, greg. you know, i didn't start with much money, but i took big risk because i had my whole life ahead of me. you got your whole life ahead of you. buy some stocks and they go down big, you got that paycheck coming. it's only older people further down the line that don't have enough paychecks left. you take the big risk. that's what i want. chris in oregon, chris? >> caller: yes, jim, thank you for taking my question and thank you very much for all the great advice you've given me. every position in my portfolio is captain cramer approved and doing very nicely. >> you're very kind, chris, thank you so much. how can i help? >> caller: my question is, i have a ira equity portfolio that

i don't plan to draw on for about five more years and everything then is obviously reinvested into it. my question is about dividends. does it matter whether you reinvest the dividends back in the stock that generated them or reinvent them in the fund in general? >> all right. i have -- any time you can reinvest dividends, reinvest dividends. power of compounding, one of the greatest single things that can happen to your money is the compounding of dividends. okay, teach a man to fish and the show evolves but our mission remains the same to make you the home game or better investor no matter what you invested. i'm in your corner. plenty of "mad money" ahead including how to plug into one of the biggest sources of wealth and plus, it can be a huge way to win but a massive catastrophe if you're not careful. don't miss this important advice. i'm taking your tweets.

"mad money" will be back after the break. >> don't miss a second of "mad money," follow @jimcramer at twitter. tweet cramer #madtweets or send jim an e-mail at cnbc.com or call 800-743-cnbc. miss something? head to mad money.cnbc.come. . sir! there's been a breach. we need your password so we can lock down the system. my password? yes, sir, we need your password. the password that i use? yes, sir, your password. there's been another breach! sir! right. okay. i-h-a... ...t-e-m-y-j-o-b-1. ihatemyjob1? wanna get away? now you can with southwest fares

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we've started the show explaining why we teach what we teach, and why you want to own index funds to catch the profits and opportunities of stocks . for those of you that say we tote stocks, we'll never change you over or win you and we do know. that's fine. we live with it. so why then do we even bother to do the show other than i like to be compensated for do something if i like index funds that much? you know what? it's a terrific question. surely i could have retired by now. i did well in a previous life goldman sachs, hedge fund manager and one of the largest

compound return after all fees of 24% when the standard index gave you an 8% return during the same period. i will come back to that number so hold on to it. but i mention it now because i'm lucky enough to be able to do what i want to do at this stage of my life. every now and then again i'm tempted to think maybe i should go back to be a hedge fund manager but when that occurs i remember my late father thought i was much happier doing what i do now and he thought it would be a mistake to go back to that life because he thought it was too hard and he thought the show was terrific and helpful and my biggest backer in what i was trying to accomplish here. thanks, pop. so why ever talk about individual stocks then? first we know that someone must want the information or we wouldn't have lasted as long as we have. this is a commercial product and the marquette judged the product. if i were, it would have been canceled years ago. i do it because of stocks, national video. don't write this down this is history. st technologies, also known as

steel and giant foods, heinz and gantos. these six stocks are the core of why i can this show can play a role in your financial education and get your to the point where you make fewer r r eer errors a chance to make money longer term . if you choose to invest, index funds are preferable but i know you're going to want to buy individual stocks anyway or you wouldn't be watching "mad money," which brings me to the first of six stocks is the genesis of this show. national video. why was growing up, my father's brother knew a broker and that broker's name was jack. i met jack once. i recall he played a lot of tennis. he had a really good backhand. my father worked hard. after the war he started at gimbels selling men's slacks. when it was clear he wasn't ever going to get promoted, he decided to strike out on his own for his brother selling carpet

and toy games and boxes and bags, gift boxes, you know what i mean, to retailers. those who heard my father's eulogy delivered the day after he died november of 2014 know my dad had a really hard business life. he and his brother started the national gift wrap and box company to supply merchants with everything they needed to box, wrap and bag whatever they sold to customers. while he never had much competition, his customers were always going under and he was on the road quite a bit trying to find the new ones. i remember endless days of discouragement. i was growing up, you know, those were the days when my mom would tell me go to your room. go to your room before pop got home because he had a hard day and didn't make sales or customers were cruel to him. it was tough for him to save. he had money in a bank account and savings and loan and didn't pay much interest and i knew he was always deathly afraid he wouldn't pay the bills. one day pop said he knew what he was going to do.

he was going to buy the stock on national video because pop's brother heard from jack the guy with the good backhand who was a broker that it was the next big thing. the stock of the millennium. i could tell pop was elated and bought more of it and more of it because it was going higher. in fact, that's all pop knew about national video. pop didn't follow it every day. he found out how it was doing by reading the five-star evening bulletin, one of the biggest papers or turn on the radio and they would list closing praises on the station he put on including the heavily national video and he would cheer. he encouraged me to follow it. i kept the journal of stocks in the fourth grade. i didn't know about the companies beyond what pop knew about national video but i wasn't playing with real money. he was. sure enough, after pop put a sizable amount of his life

savings into international video, it started going down. like many people, pop didn't know what to do so he would check in with his brother who checked in with jack who told pop all was well and he should keep buying, which he did. i'm glad for two things, pop never borrowed money to buy national video and two, stocks blessedly stop at zero on the way down. pop lost everything, everything. i didn't notice the changes back then but we didn't take much vacation, and we sure didn't stay at the ritz carlton or four seasons when we went away. i remember ritz mock apple pie made with the crackers. there was an important take away, this is the very feund mental of this show. people are tempted to have stocks to save augmented paycheck. one of the preaccepts of mad money is to know how to invest if you're going to do so. think of the mistakes my father made with national video and you will know why this show is set

up the way sit. first, he didn't know anything about it so he had no idea how the company was doing, how risky it was, how it could go down and up and how it could go under. he relied on a stock brocker friend. he had done no work at all. he was at the mercy of the movement of the stock and only knew to buy than to cut losses. that's right. he had a tip. he bought the tip up and down if you're doing no work and he lost everything. substantial chunk of his life savings. let me give you the bottom line, here are the many take aways from the video story. tips are for waiters. two, you must do homework if you own individual stocks, three, if you don't do homework own an ind index fund. don't own stocks at all if you fear losing money because they can go down and up and by the way, i still don't know what it does. yeah, i can google it but that's for another chapter in tonight's

story. after the break, i'll try to make you more money.

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welcome back to a real special show of shows, meaning a show describing what this show is about and why i do it to

begin with. first, we covered that i don't want you to buy an individual stock until you own a diversified and own enough it will be the biggest part of your savings, never stocks. we don't call the show "mad money" for nothing. we're using "mad money" to buy stocks. next we learn how not to invest. buying a stock national video ignore rei ignorantly riding it all the way up and all the way down that wouldn't happen with an index fund but we respect the right to invest in individual stocks, even as we recognize my father had diversefied into an index fund or basket of stocks might have had more to show for it which brings me to the second stock object lesson of the night. american agranomics. when i was covering sports, i made about $153 a week and then homicide in l.a., winning awards

for my coverage of the ted bundy murders in the florida capital. i didn't make much money there but i knew to open an ira and save money. whatever little money i had went to the fidelity mutual fund ran by peter lynch. but like my dad, i was determined to try to augment that mutual fend but buying individual stocks for a personal account however i was going to do it the right way by researching the stocks, not through the brothers, broker. where was i going to get the edge? i figure why not read the articles that cover stock. so many of them back then. i was helping to start a magazine, a trade publication devoted to the trade law and the lifestyle and kind sister let me crash in her studio apartment in the village for a bit i was able to save money. in fact, i saved more than $200 beyond my contributions and decided to use the definition of "mad money" to buy the stock of

americaning american ing a no, ma' agranomid up ten shares of this $9 stock. ten shares. i was on the ground floor. you know what ground floor i was in on? the cheap ground floor i sipped on. yeah. because the frost wiped out the orange crop and destroyed my investment. i should have given upright there. i didn't. i just changed my m.o. what i did -- give up on, though, the idea of buying a stock off a well-researched article. didn't hit me about a better way to do it until i got a call from an old friend of mine, high school friend who said a local steel mill that made precision steel was hiring if i was looking for a high-paying job. they had a lot of orders desperate for workers. my friend didn't know i was

struggling for a extra money and might want another job. hey, those calls in the middle of the recession for a friend for a job can be like gold but i said no, i was happy where i was but i decided why not look into sps and decide how it was doing as a company, a stock. i went to the midtown library and promptly read up on everything and anything that was sps and changed to st technologies. they had everything at the library, value lines, wall street research, you name it and here is what i discovered. first, wasn't much known or written about sps and what was written was pretty darn negative. my first thought was oh, well, it's not doing that well, bummer. but then i realize hold it, my information is the most current possible. i got a guy telling me they can't handle the business they have, and need to add additional shifts of unskilled labor like me but the periodic ls read negatively about it. i had insight nobody else had. i was ahead in the story. these days it's hard to get the

edge. everybody knows everything at once. edges to exist and we do our best to present them every night. interp rati interpretations of news and events and analysis is important. i took everything i had, everything, everything i saved and made a ton of money as the sps story unfolded. enough money that i decided i would look around the office for more ideas. i was writing about lawyers back then and it was clear, all the public ones and clear the hot feel was about oil and gas. one after another they were being gobbled up so i thought gee, why don't i find one that isn't gobbled up yet. sure enough i find a company that just discovered a large find in indonesia. i took another chunk of money, say like $300 and bought that stock. at that point i was hooked. it changed everything for me and

my whole career plan. i put money into my mutual fend and i made enough money to pay for my first year of law school when i decided to become a attorney. many say none of this is possible today. the research is everywhere now courtesy of the web. anyone can google any company and know how it's doing in a nanosecond and you would know sps which then got bid from warren buffet was hiring and dog well. third, there are rules to make it to get any edge because companies have to have fair and full disclosure. some would say you can't possibly gain stocks at all and might as well buy an index fund. you know i'm not against that. i was investing in individual stocks alongside a much bigger percentage of my savings. still, i recognize you can study and pick stocks that might be doing better than the average stock and can indeed augment savings. have edge and stay current. here is the bottom line,

remember american agronomics and sps, if you remember or the writer or forbes and you buy -- that's not good enough. it's a start. better to have genuine insight that others might not have if it's against the grain of the consensus. it is the end about the odds and any hard work you can do to increase those odds in your favor is going to make it more likely than not that you will succeed as a do it yourself investor, which in the end should be the exact reason why you watch this show. joe in new york, joe? >> caller: boo-yah, jim, thanks for taking my call. >> of course. >> caller: a quick thank you for sharing your wisdom with viewers. appreciate it. >> i got a great staff that helps me, thank you. >> caller: if i want to diversify and add three or four companies to my portfolio for the long term but i would only be able to buy two or three shares of each company or would

it be better to buy ten shares of one of them? is the least amount of shares you would invest? >> ten shares, i've done many times i've owned ten shares, i've done two or three at various times. i do favor an index fund and only after you maxed out on index funds do i suggest you buy an individual stock. nobody said investing is easy. that's why i come to help you put the odes in your favor that requires genuine insight, time and hard work but don't worry, we'll do it together so stay with cramer.

what's critical thinking like? a sketball costs $14. what team spirit wor? (cheers) what's it worth to talk to your mom? what's thealue o a walk in the ods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

tonight i'm telling you how to increase the odds of

successful individual investing using stocks from my personal histories to tell the whole story. we have gone over why we start with index funds. we have seen the wrong way to invest by examining a failed investment of my dad's, national video and we have seen the right way through a couple stocks i bought before i went to law school, all of which were ahead of the publicly available data curve back then. while at law school i managed to trade daily using personal insights and going to the harvard business school library, that had everything available at the time you could dream of including research from every maj major brokering. so what if it was a month old when we got them? it was better than nothing. we sold first of the stocks followed by the value line company that was an influential research firm at the time still around and then only the s&p 500. i didn't think much of when they bundled it back then.

i just didn't. i was more interested in individual stocks and had big scores, all of which you can read about in the confessions of a street addict but at no point did it cool the individual stocks. the hay day for stock was just beginning by the time i was in law school hence is why i put a stock on my answering money and all made money thank heavens. we were coming out of subpar market performance peaking in the low teens, that's right, interest rates were four, five times elongated bonds are now and money coming into stocks and let's just say it was all beginning. how did i know this? i started on commission in 1984 i used to get a call every day from none other than my mother who absolutely loved the stock market and could call for quotes. i had gotten her interested in stocks in the early '80s and she chose to invest in the way peter lynch, buy what you know and stay on top of it. she had been shopping in giant food which was have arprogrea m

itching to buy more. what i would do is something i would often tell you to do, i would read up on the wall street research and marry her experiences at the chain, right, personal insight with the fundamentals of the grocery business. goldman sachs had the best analyst on the street of the supermarkets and i would read what he had to say about giant versus the other firms he liked. i had the luxury of having a friend tommy tish from the lowes corporation that wrote about stores every week. here is the process for homework. you liken an idea from personal experience and match those insights with those of other firms. if the ax liked it more you might have a slight imperfections as analysts got on board. it was helpful if the ax were to trace out the game plan because if there was terrific growth, especially regional going to

national growth, that would mean investors would only pay up more than for other companies in the sector meaning the multiple, which is the price we pay, we're willing to pay for future earnings and the price, the p.e. could go higher. these days everything is so much easier. while giant food was bought by a dutch company, you could have gone to the web page and it would have most likely have everything you want including a stock price, which by the way is available everywhere, no need to call the broker. the negative is everyone has equally same info. public information. the insight by my mother was the starting point. you can't substitute for that, no. my late mom never lost her interest in stocks. she took cancer in 18 -- 1985 and call me to get the information. she did it to stay alert and connected to me. goldman sachs give me as much time off as i needed to spend with her before she died but i never forgot how easy it was for a parent or son or daughter to

talk about stocks, which is a major reason some of you watch the show and i pledged to my mom one day i would do something more creative than just make money with money, something fulfilled years later by the show. it is important to know despite all the different inputs, the process of picking winning stocks can be up ended did events as we know from the great recession or execution of the company itself and power of the competitors to knock it off in stride, which brings me to the fifth stock in the saga, gantos. anybody regular that? is a women's apparel chain. heavily promoted. i tried to get my father to buy stock in the chain but he would hear nothing. i asked him why because he had the best analyst on the street. he said because no one goes there. i told him it was impossible. too highly rated. my father said all right, then let's take a trip to frank lynn mills, a giant outlet mall outside of philadelphia that my father used to go as he called on merchants to see if they

needed any boxes and bags. there was a gantos in one of the mall's many nooks and my father said we'll sit on this bench and camp out in front of gantos on a busy saturday and make our own judgment. we sat there hours and hours and only about a dozen people entered the darn store and i can't remember if we saw one guy or one woman come out with a bag. i shorted the company that monday and stayed short pretty much until the whole thing went to zero and got lickliquid. i'm offering a way that this show can bolster the process. i try to imagine my mother being a caller and try to keep the skepticism lesson that my father taught me and try to think how to sent you the giants and gantos to understand the process. most of all, i want to show you it isn't reckless to pick

individual stocks and those who say it is just don't understand the process of firsthand experience married with research but by skepticism. it all increases the odds of successful individual stock investing and minimizing the risk of single stock ownership. my mom was no genius to stocks but did have a genuine interest. my dad was a genius at retail and i would like to think some of that rubbed off on me. stay with cramer.

we're talking about the notion of individual investing and i try to teach you how to analyze stocks you might pick if you have the time and inclination. if you don't, you can keep

watching but i want you to invest in index funds, not individual stocks. because i do research and i want you to have eng dge or catalyst match the experience with homework, principally research and the knowledge from the company's website but recognizing you must be skeptical at all times. now let's get to the final piece of the puzzle that eludes so many of you and make the process far more mystical than it seems. let's talk about heinz, the company bought by warren buff fit. when i opened my hedge fund, the first stock, why did i do it? i was looking to own a stock that represented a call and great management team that could deliver earnings through thick and thin. at that point it was a classic stock moving from the first rule to the third rule. we used to call it that before it became a developing economy and had a clear growth path ahead and plus at a time when the japanese were nipping at the

companies and chinese were becoming power, i was confident we would never have asian ketchup on the table. as long as i was at goldman sachs recommending stocks i needed to find, those i could suggest my clients buy more of in case they went down. that way i wasn't wrong so to speak and would run the risk of losing a client. performance has a rule and learning them on the fly that really got me let's just say down on my luck. just buying stock because you knew it was terrific, they want a performance, often daily performance and i started my fund at a time when the economy was just beginning heat up. heinz was a strap well a good dividend and when the economy heats up, people dump it in the blink of an eye.

i watched as heinz and companies like bristol myers drop and drop and drop some more. they were caught in what i didn't realize it was a rotation in the stocks of companies diversified machinery, businesses with earnings that would heat up, start popping. i didn't get that if i wanted to perform daily. i realized i'd have to dump my heinz and bristol myers and start buying reynolds to name a few, you're mining and mineral nevertheless, i had a clause in my contract but one of the guys, if my fund dropped by more than 10%, i have to open the doors and let people out of their contract with me. each day my funds sank and sank and sank because it was filled with best of breed and fashionable. when i had fallen to 9%, i started playing the rotation game and quickly got to even and much more so. it was a sobering lesson i never

forget if down want you want ton a daily basis, you have to take action. you own best of three companies, there is one problem, the rotation game is not one you can play at home without being a full-time professional. here is why as that year progressed, the economy got hotter and hotter and hotter and the stocks kept getting higher and higher at a certain point, things got too hot and people worried about interest rates going higher and don't we know about that and the next thing you know the stock market crashed. all plays were decimated. bristol myers snapped right back. let's come back to the show itself. remember, i have now told you to use an index fund no matter what and then only by individual stocks with mad money using the right way, not the wrong way. i have detailed how a rotation can derail the best of the best for a short period of time. what wemoney" is to

explain up top why you stocks may not be following the fortunes of the company underneath because of things like rotation and macro events and i try to show you you can use the flailings to your own advantage by picking up companies. i do that basically through the longer pieces that use stocks as examples of what is happening and bring on executives to learn about the stories and see if they fit into what is right or wrong in the mad money world view. i've seen the best out in the end, whether be after the great crash of '87 or great recession of 2007 and 2009, my job is to keep an eye on that prize for you and to explain why the market may not be reflecting accurately what is going on at actual companies and that's your chance to get it at reasonable prices. i augment the views with other works, most notably my book get rich carefully and my blog and my charitable trust which you can follow along at

actionalertsplus.com. that's how to show you how big money works. it's more of an exhibit with e-mails given my tough restrictions. that's okay. it can help you understand the rotations better than anything out there while producing good profits for charities. i'm proud i've give pn away 2.3 million dollar and i want you to understand how it works and how the pros enter twine with how a home gamer should invest, a product of my more than 35 years of trying to figure it out myself. i know the show is not perfect. i've made my share of mistakes. i've covered companies that didn't work out or do my homework correctly. i know i have a reputation not really deserved i feel for being too bombastic. i'm trying to keep you inform in an entertaining way, knowing if i didn't try to make it a little bit of fun, it would have failed commercially years ago and i would have let down my mother, father and you home gamers years and years ago. the education is what it's about as long as you know the bottom line is that i'm doing my job

and hopefully doing it right. stay with cramer. you do all thih

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hey, everybody, i get your tweets all day to answer as many as i can but today i thought i would give my hands a break and dig into your tweets on "mad money." in real money, he means the book, you said to be aware of firms financed heavily with debt. is there a certain debt ratio percentage to deal with? if you go to stay mad for life, the main thing you have to do is be sure the debt they have, the interest isn't overwhelmed. it doesn't overwhelm the company. can the cash flow pay for that interest? that's what you'll get. here we have that number two i at jim cramer #cramer 2 is there any gold standard? no. we don't want that. that pegs it in way to have no flexibility whatsoever however i do think that owning some gold

is always a good idea. you can do it through the gld or per yac periodically i might recommend a stock. great morning on the west coast, teaching my 5-day-old the value of investing at an early age on cnbc. what can i say? you know what that kid has. sense. wants to know at jim cramer #high quality companies could you define precisely value good cash flow, low debt, momentum. everything gets sold. best to breed. high quality means it's acknowledged to be the corporate leader in the sector. that's what i want. if the sector is a good one and this is the best of breeding the sector, i think you'll have a good, long-term investment. i prefer for you to wait to get a periodic move down caused by an event, that's when you pull the trigger.

at jim cramer we know that money never sleeps but do you? i've always had a sleeping problem. my sister has one. my father has a sleeping problem. we cannot stay asleep as long as we'd like and that's why i'm tweeting at 3:40. next, at jim cramer, who are short sellers worth following and learning from? this is an industry when i'm looking for is actually the best shorts, not the best short sellers because periodically they are in the wrong stocks shorting the same stock. i like to look at the companies case by case. here is your 6:00 p.m. show replaced the nightly news i stole the nightly news but i appreciate that and i'm glad you watch it when it's on air. you get the scoop of people that tape it and watch it later. now, up we have at cjp under score teo at jim cramer, professor so glad you're helping us, i read every action alert plus, thank you for the extra tv hours, never miss one.

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i like to say there is always a bull market somewhere and i promise to find it just for you right here on "mad money." i'm jim cramer and i will see you next time.

>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ with a money-saving idea to help parents entertain their kids. ♪ i'm nikki pope. i live in los angeles, california, and my company is toygaroo. (singsongy) look what i have. yay! i have 13 nieces and nephews, and they absolutely love playing with toys. i call them my playtime professionals.