>> the last two days the shows have been -- >> hai >> and cypress semi reports tomorrow. >> cypress semii >> i'm melissa lee, and thank fo . >> 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 kraim cramerica i'm just trying to save you money. my job's to educate you. call me 1-800-743cnbc or tweet me @jim cramer every night i come out for two big reasons. the first is 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. i believe the stock market is the best ladder we have in this country for social mobility. there are millions of people in this country but there aren't that jobs that pay you a salary fat enough to make you rich. even if you're a total cheapskate and save nearly every penny, if you want to become really wealthy in this country unless urn born with a silver spoon in your mouth, that means planning your financial strategy for a lifetime as long as you can save a decent chunk of your paycheck and invest wisely, you can make your wealth grow where you become financially independent. meaning you don't need to worry about your job security or where your next paycheck comes from. you'll be able to retie without the need to rely on social security which might not be

around when some of our younger viewers hit retirement age that's why tonight, tonight i want to help you figure out the best way to manage your money in order to help achieve real financial independence >> house of pleasure. >> in order to do that, we need to talk generational investing the kind of strategies that make sense when you're young in your 20s are very different from the sort of things you should do when you're middle aged or a senior citizen for that matter we don't talk enough about that. tonight's different. there's one constant when it comes to managing your finances. and that's the fact that you will never get a better opportunity to make your money work for you than by investing in the stock market. even in a bear market, when the action is treacherous and feels like stocks go down every day, when you take a long-term view, it's easy to see the stock market is the most effective

method of wealth creation. it might go down for months or years and might crash like it does upon occasion if you take the long view, the very long view, stocks tend, excuse me, stocks tend to go higher i don't say that as some sort of pollyanna. when i got started in the early 1980s, the dow jones industrial average was trading in the 800s. despite multiple bear markets between then and now, the dow currently stands what you might call well above that mark, right? that represents a pretty fantastic amount of wealth creation ♪ and that's why i'm so adamant no matter how old you are, how wealthy you are, you should have some of your money socked away in this, in the stock market for those of you concerned that the market's rigged, dangerous, too unreliable or unsafe place to trust yourization, can i give you historical perspective right now? if you go all the way back to

1928, before the great stock market crash that preceded the great depression, 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. if you want to get rich quick than carefully, that 10% average annual return for the s&p 500, i know, may not seem like an impressive number. some of you are probably saying thanks for nothing you're just wrong. forget the fact that it's more than double what you can expect from a 30-year treasury or certificates of deposit earn next to nothing. let's examine the 10% figure in absolute terms when you're taking a long-term view which is what we're doing tonight meaning planning for your lifetime, racking up a 10%

return from a simple index fund which you know i prefer starts to steam impressive. sure the markets will have up and down years but over a long enough time frame that, 150 of 10% figure has held steady to understand the value of an asset class, you need to view this number through the lens of compound interest. sometimes i'll talk about this as the magic of compounding. 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% gains, you've got $121. a third year of the same gives you $133 the gains keep getting larger because each year you're making additional money off the previous year's profits. eventually with a 10% average return, you'll double your money in seven years for those of you really young right out of college, waiting seven years to double your money

seems like an eternity and listen, i've got more risky ways of growing your capital faster if you stay tuned the truth is, as you get older an investment that can pretty consistently take your money up in seven years time and double it, well, it just becomes incredible that said, the magic of compounding works best the younger you are. you have more time for money to grow young people are the least likely to be impressed by that steady capital appreciation. that's why george bernard shaw said that youth is wasted on the young. so let me do my best to make these numbers sound more impressive i'm going to walk you through it suppose you're 22 years old. and you're just entering the workforce. you've got more than 40 years before you're expected to retire let's say you invest $10,000ed in an s&p 500 index fund now let's suppose the next 40 years

aren't too different from the last 40. if the average return 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 you send multiple children through college, grad school, buy a nice house in most parts of the country, pay for a huge chunk of a ritzy retirement that monster multiyear gain it didn't require any kind of stock picking. it doesn't require you to trade or time the market or even do any sort of research into individual companies which i know is hard for most of you you just need to invest your money in a low cost s&p 500 index fund or etf. then you wait. granted you wait 40 years but $450,000 approaching the age many people retire seems more

valuable than the initial $10,000 investment you made when you were young and had your entire work life ahead of you to make money the regular way so please, i'm begging you, think of it like this. 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 costs and responsibilities all you have to do after you initially save that money is let it sit on the sidelines. ideally in a 401(k) plan or ira so you don't have to pay capital gains or dividend taxes on your gains. the same logic applies 30, 40, or 50. you get more if you start younger. the bottom 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 and thanks to the magic of compounding, the earlier in your life you start investing in the market, the bigger your long-term capital

gains can be and, of course, it's -- not just capital gains but also dividends, everything gets reinvested let's go to brenton in new mexico brenton? >> jim cramer, a big boo-yah from the land of enchantment how are you? >> i'm good. how about you. >> doing fine. general question mutual funds and index funds claim minimizing it single stock risking. > right. >> but inherently though isn't it fair to say mutual funds and index funds have other risks that you would have laid with a single stock portfolio >> absolutely. i think that that's why i always suggest there be two portfolios, the capital preservation and somewhat appreciation fund that is going to be -- we put that aside for retirement and that should be in a diversified fund i prefer it to be an index fund. the rest should be mad money

a sliver of it mad mad money we pick individual stocks that's why we call the show "mad money. i don't want the bulk of your portfolio in single stocks there's too much risk. i want you to be able to pick stocks brian in oklahoma. >> thanks for having me. first time investor. how do you -- how do you value a company's one company versus another for value? >> we spend a lot of time talking about that what you're trying to do is measure the future earnings stream if you measure the future earnings stream, you can figure out what you'll pay for it now and what really matters is if you take a longer term view, you can feel for what are that stock might give can you for dividends and capital gains. dividends tend to be for preservation and then the capital gains is for the appreciation stream. i want you to have a little bit of both. you've got to think what a

company be can earn in the future that's what's dictates stock prices this show is about helping you build and preserve your wealth stock market is the best tool out there to do that a lot more ahead including the four-letter word of the inve investing world. what it is and why the conventional wisdom about it is wrong. plus, what you absolutely must not be doing in your retirement account. and i'm unveiling the rules you need to navigate in a bear market stay with cramer don't miss a second of "mad money. follow @jim cramer on twitter. have a question? tweet cramer #madtweets. send jim an e-mail to mad money @cnbc.com or give us a call at 1-800-743-cnbc miss something head to mad money.cnbc.com for your heart...

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i want all of it. great to have epix? open this. you'd laugh. you'd cry. don't you think i had dreams and hopes. what about my life? what about me? maybe even laugh while crying. so you know, even if you're a psychopath, it touches your heart. sounds pretty great, right?" we're on to something. come on. and the best part is it's easy to upgrade. just say, "add epix." epix has a whole lot more. whoa! ♪ tonight we're talking generational investing meaning how to handle your finances depending whether you're odor young or somewhere in between. as much as many of us might not

want to admit it, the rules in this game can be totally different depending what age you are. nobody would suggest that a retiree pour all of his or her money into high risk speculative stocks that could have enormous potential or go all the way to zero and wreck your portfolio. just because some of this may sound straightforward doesn't necessarily mean it's obvious or standard which is why i'm taking the time to go over the important differences depending where you are in your life cycle. now, i always tell you you need to have two discreet piles of cash, retirement portfolio which is more conservative like a 401(k) and your discretionary portfolio where you can take more risks with your money once you've topped out your retirement fund. objectives the must always come first no matter how old you are. i love to play with the mad money side of things but the truth is, that a bet on your

retirement is a bet on your own length jest. you want to live a long time and shouldn't have to work your fingers to the bone. that means planning for retirement from the moment you get your first paycheck. regular viewers know the rules the first $10,000 you invest in the market should go straight into a low cost index fund or etf that mires are the s&p 500 a fabulous way to put in the exposure without the time or effort necessary to pick individual stocks. if you don't have the time to pick individual stocks, all of your exposure can come via the index fund i'm fine with that there's no reason this needs to be complicated like i mentioned earlier tonight, it's important you get yourself some exposure to the market because no other asset class can grow your wealth the way equities do. once you save more than $10,000, you have enough money to start a diversified portfolio of five

stocks anything less than five stocks you aren't diversified take that money and invest it in individual companies for your portfolio. once you save a large amount of money enough for retirement and maxed out all the benefits of your 401(k) plan we start talking about the discretionary portfolio where you can afford to take more risks a lot of people feel all i want you to be is in individual stocks that's wrong index funds. and then individual stocks now, when you're young your your portfolio on discretionary might not look different when you're still in your 20s or even your 30s, if you invest in something risk every, you've got time to make the back. you've lost your whole working life basically years and years and years of

paychecks. however, if you're pushing approaching retirement and you lose a fortune in the stock market, that's a real problem. you'll have little time to fix it which brings me to my first rule of generational investing not only can younger people afford to take risks that older folks can't, for those of you younger it's imperative that you take those risks you shouldn't speculate with all your savings that retirement portfolio is off-limits but you should devote some of your additioncretionary to betting on long shots. i believe in this. i'm talking about smaller less well-known companies with massive upside potential this is for the younger co-worker. the clack examples are the development stage biotech stocks which can fly through the roof if they get big drug approve or' piece of positive data on a drug years away from hitting the market these same smaller biotechs will

get slapped if there's negative news and the stocks will be to own because they don't have dividend or earnings protection. we're talking about long-term investing looking for good opportunities that can work regardless of a bull or bear market there are plenty of speculative companies that have nothing to do with the drug business. why do i insist that younger investors take risks that might scare odor people because the gains here can be absolutely stunning and it would be down right foolish to pass up the opportunity to own the winners when you're in your 20s and 30s, invest like a young person, not like an old man. take at least a few kinds of risks. let me give you an example that sheds light. when "mad money" came on the air in 2005, our first interview was dr. lynn been shifr. a tiny biotech company called regeneron trading around $5 a share. at the time it was a biotech

kicking around for 17 years 17 years without developing anything note worth that could move the needle. since then this company's become a powerhouse with the stock taking off with the strength of i leah it's macular degeneration formula. fast forward ten years in the summer of 2015 and the stock traded all the way up to $592 before getting slammed by a marketwide selloff for the sake of using round numbers, let's call it 500 bucks ten years ago. you could have bought regeneron speculation 5 bucks. what would happen buying at 5? a gain of roughly 9,900% not a double not a triple not a quadruple. re-jenner ron is a ten-bagger.

you never could have gotten in on that gain if you hadn't taken risk in 2005 and brought a company with no profit and only the promises of the ceo that would work out similar small cap biotechs have done nothing or lost you enormous sums or longer periods. you won't always be identify who are the win in other words this space. that's okay as long as you speculate using a wide net if you had taken nine positions, say nine of them go to zero, as long as the tenth one was re-jenner ron, you would have made a small gain. it absolutely belongs there because the risk reward of trying to spind speculative winners makes sense when you're young. speculationing is ricky for older. i only recommend excess cash that you can afford to lose.

remember to speculate while you're still young enough to be able to take the hit if something goes wrong as long as you're disciplined and it only makes a small portion of your discretionary portfolio, it's worth hunting for the next re-jenner ron without histation. much more "mad" ahead. the answer to the question, stocks or bonds sflt age old wisdom you've heard is wrong i'm about to rewrite the script. the game plan when the bear market strikes and it's the most important piece of advice about financial advice i could ever give you many of you will have to take action tomorrow. don't miss this. stick with cramer. who would have thought,

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it's time to address a major issue that i have to admit i don't spend enough time discussing here on "mad money. i'm talking about the question of stocks versus bonds now, there's a good reason why you don't hear me recommending that you invest in bonds often not because the show is about stocks the fact is, ever since the great recession, interest rates have been held down to incredibly low levels. therefore bond yields like the return from owning u.s.

treasuries have been paltry both by historical standards and versus what you can get from safe dividend paying stocks. in general for the last few years, even when the stock market has been getting 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 been insuring you'll get a very low return on your investment for many years to come 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 so many years. however, i don't want to make it sound like i'm poopooing bonds all together there's a place for bonds in

your portfolio an essential place especially as you get older. here's the crux of the issue though even though i believe stocks are the best way for you to grow capital over the long-term, even in moments when treasury yields are at historically low levels, stock and bond investing are about two different things stocks you use for capital appreciation meaning turn your money into all money bonds are about capital preservation and protect your money and give you a nice and steady albeit small return to offset inflation for the most part you invest your money. stocks to generate even greater wealth you invest in bonds to protect your wealth you can't afford to lose which brings me to the generational aspect of this question there's a huge difference in how you should approach the idea of putting your money into bonds. when you're young, investing is about taking risks i've explained how people in

their 20s and 30s can get away with that attitude you've got the rest of your life to make back any potential losses as you get older, have you more wealth, you simply can't afford to lose it especially in your retirement accounts bonds are a staple of saving but most financial experts will tell you you need to own a lot more bonds earlier in your lifetime that i think is truly necessary. you never get rich from owning treasuries though. even if you inrest in 30-year u.s. treasuries our government bonds with the highest yields their lower terps don't produce much in the way of appreciation. 30 year treasury bonds yielding 3.578%, relatively low% that is much higher than the range we saw in the first nine months of 2015 with that 3.5% yield, as long as you reinvest your coupon payments back into treasuries you might double your money in

20 years the average historical return for the s&p 500 benchmark for u.s. stocks can 10% annually which will let you double your money in a little more than seven years. under the age of 35 and you own a bunch of bonds with the idea that they'll slowly but steadily make you money, you're being way too cautious i know it puts me out there. i've been around that's how i feel. even in your 401(k), ira, you want to be heavily weighted towards stocks when you're young to allow your gains to compound tax free year after year i've told you how great compounding is as you get older, owning treasuries becomes essential because unlike the stock market where you can lose enormous amounts of money in the blink of an hour, bonds are safe. once you've used the stock market to make yourself financially independent, you want to funnel your investment in u.s. treasuries by putting

your cash in a cheap bond fund that mirrors the yield precisely how much of your retirement portfolio should you keep in bonds versus stocks? that depending on your age i don't think your retirement fund should have any bond exfor whatsoever till you turn 30. if you own bonds at the age of 25, you're wasting your youth. it's better to put your capital to work in the stock market where it can grow. in your 30s, i'm going to let you keep 10% of your retirement fund in bonds or 20% if you're on the conservative side once you're in your 40s, you can go up to 20, 30% in your 60s as you approach retirement age, all right, take it up to 40 to 50% that's right 40 to 50% bonds. if even if you retire, keep a substantial chunk of your portfolio in the stock market. post requirement recommendation

su increase your bond exposure to 60 to 70% once you stop working you can't afford to take too many losses with your investments. specially since you're going to need to start spending money in your accounts. but that said, i still think keeping roughly a third of your money in stocks makes sense for a retiree because you'll be living off your investments for rest of your life. some part of your portfolio should always be trying to create more wealth in case you need more moneyton support yourself in other words, going all in on bonds once you've retired is a bet against your own lock jest who the heck wants to take that bet. for younger investors putting your bonds is a fool's game. as you get older, you should increase your retirement funds bonds exposure to the point where 40 to 50% of your money is in u.s. treasuries by the time you're in your 60s that will be protected against the volatility of the stock

market 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 extra money comes in handy nasir in pennsylvania. >> boo-yah. >> how are you >> i'm good. big fan of the show. thank you for taking my call i love your book "get rich carefully. i'm looking for advice today on how to determine advice for a stock especially if i'm looking to start a core position given how important cost basis averaging is. >> i think this is a great question the reason why it's a great question, a lot of people feel like they want to make what i call a statement buy or just want to be in a position where they kind of got rid it of it, they bought it and put it away take into account human frailty. the most i like to buy at one point is half of my position

i prefer to buy a quarter. if the stock goes higher, what a terrible high quality problem. if it goes lower, you got room to buy i like to buy in stages. in all my books i talk about stage buying because i don't want to be overconfident don't be over confident. brian in new york. >> hey, jim, how are you >> i'm fine. how you doing? >> i have a 401(k) plan from a previous employer. i'm trying to decide whether to put it in an aknew the managed by an insurance company or if i should put it in a traditional ira. >> you watch show. you can do it yourself annuities have fees. i'm not against anything that makes it so 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. i believe in self-directed investing when it comes to that. if you have to, put it in an index fund i do like to take control of my investments. an ira lets you do that.

investing in stocks and bonds are two very different things. as you get older, you can add exposure to bonds. young investors -- when a bear market takes a bite of your money. plus i'm not kidding around. if you want to insure a strong retirement, listen to my advice and take action tomorrow morning. don't miss it. i'm answering the questions you've been sending me on twitter. why don't you stay with cramer the earnings are relentless. (siren wailing)

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tonight rather than focusing on the day to davis sisitudes of

the stock market, i want to plan out how you can invest for a lifetime, taking a much longer it time. when i say longer, i'm talking about taking a 20, 30 it, 40 or 50-year view there's no such thing as a stock you can buy and hold for the next decade. i wish it were that easy it's not viewers know my mantra is buy and homework not buy and hold. keep checking up on a company on a regular basis and make sure nothing's going wrong with the story. just because you can't pick a stock and ignore them, that doesn't mean it's impossible to take a long-term view. zoom out a bit when you exam stocks over a multidecade time horizon, if you know what you're doing a bear market can simply be a different kind you have opportunity. that's right when stocks get 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 rallies in the face of positive news, you have to recognize that you could be getting a terrific opportunity to pick up high quality stocks for the long run into the weakness i'm not giving you a license to buy stocks indiscriminately. when you're faced with a bear market meaning when the average is down by more than 10%, that as the parlance in the show from their highs and they seem like they could go lower, it probably makes more sense to start buying rather than selling as long as you're willing to take short term pain for long-term gain you need to be very careful. you never buy a position all at once and you just ask yourself to look like a moron if it keeps going lower. gradually leg into your favorite stocks buying small chunks incrementally on the way down. in a bear market, you probably want to use wider scales meaning

after you make a purchase, wait for the stock to go down meaningfully and substantially before you buy more. over the very long-term, you'll probably find you've taken advantage of a terrific opportunity but you need to think longer term. you don't believe me look at this chart of the s&p 500 over the ten years starting fall of 2005 look at those hideous declines during the financial crisis in 2008, 2009 if you use that weakness toes very gradually build a position in a cheap s&p 500 mutual fund on the way down, within a couple of years you made a killing. how about the nasty bear of 2011 we snapped back from those losses more rapidly. this is why warren buffett seems san gin when market is getting crushes. he has enough money he can afford to take virtually any level of short term pain in order to get his hands on long-term gains. if you're a hedge fund manager

who needs to be up for the year or the day because investors will flee your business, then you cannot afford to approach a bear market as a long-term buying opportunity if the manager keeps grad lewly buying into weakness, the fund will likely go under 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 what you need is a long-term strategy to let you rake in massive multiyear gains over your lifetime so have you enough money to retire and send your kids 0 college and not be concerned with short-term performance. this is not an excuse to hang on to loser stocks because you hope one day eventually they'll turn around the ugliest most vicious markets that send everything down good with bad will always create tunes for smart invests as long as you're patient enough to take

advantage of them slowly if you pounce too quickly, you'll buy way to close to the top. if your not playing with an s&p 500 index fund you have to be careful what stocks you pick you need to do the homework, make sure you own the stocks of companies doing well or at least the companies doing okay, but could do better in a stronger environment. during a bear market, don't buy the stockton stocks notice blast radius oil and natural gas resource plays that starred going down in the fall of 2014, you don't want to own the companies that are cause the weakness search for collateral damage stocks going down because everything is being taken by the s&p 500 futures and the ets that crush entire sectors if you own anything in the blast zone please don't hesitate to sell and swap into something safer. one more important point if you want to take advantage of a monster decline to buy, you

need to have cash on the sidelines in order to make your move otherwise, you'll just be shuffling money between different stocks all of which are going lower. that's why i'm adamant you always have some cash in your portfolio. the better the market is doing, the bigger your cash position should be. the better the bigger. that way when things go wrong, you'll be able to use the weakness to buy the stocks of companies you like at bargain basement prices. when you approach the stock market with a long-term time horiz horizon, big bear declines can 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 way down stick with cramer. why did i want a crest 3d white smile?

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♪ all night i've been at thing 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, haven't you heard 60 is the new 50? and even once you retire there's another aspect of investing that you've got to stress the need to get your kids interested in managing their own money and learning about the stock market in particular while i love the public school system, you cannot rely on the public schools or ritzy private schools to teach your kids about money.

they can do a bangup job with english history, biology, chemistry, physics, whatever you want your kids to become fluent in a foreign language, great. the typical school can teach you french, spanish or chinese if you want your children fluent in the language of finance, you have to do it yourself i get the sense personal beneath them it your him cal health class will help kids learn how to put a condom on a banana but nobody explains why it's important to maintain an outstanding balance on your credit card bills. at most, institutions of higher education students get bombarded with credit card offers that can seem irresistible if they don't know better. i took down five of them throw in thousands of student debt and they could be in the hole for decades which in.cases

mean the parents will need to bail them out. we don't want that raising financially responsible children isn't just about being a good parent. it's about not getting hit up for cash every month even when your kids are into their 30s if you want your children to learn will money, then at this point, you need to do it yourself that means you need to have long boring conversations about the dangers of higher interest rate debt like the kind anyone can easily rack up on a credit card and the need to save money coupled with the power of compound interest for generating wealth but in my view, the best way to make all this dull personal finance medicine go down is with a spoon ifful of stock picking sugar. starting at a fairly early age, give your children gives of stock in high quality companies that resonate with young people. my classic example is disney give them a couple shares a year for the holidays starting when they're old enough to appreciate the big movie franchises,

"frozen," "star wars," whatever. because disney has so many blockbuster films planned over many years in the future not to mention a terrific theme park business, by the time they're teenagers their 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 market themselves and follow it along. as much as i like disney, don't have to go with mickey mouse it could be any quality company that will resonate with somebody in elementary school the point of getting your kids interesting early is you need to team them a better way to think about money. rather than viewing cash as something to be spent. you want them to learn it is something that can be saved and invested to create more money at the earliest possible age. if you don't want to do this for your children, do it for yourself because kids who can manage their own finances are kids who won't be begging you

for ma la even after you've gone into retirement. stick with cramer. la even aftee into retirement. stick with cramer. o la even aftn into retirement. stick with cramer. o la even afte gone into retirement stick with cramer. la even aftern into retirement. stick with cramer. ♪ you shouldn't be rushed into booking a hotel. with expedia's add-on advantage, booking a flight unlocks discounts on select hotels until the day you leave for your trip. add-on advantage. only when you book with expedia. hello. let's go for a ride on a peloton. let's go grab a couple thousand friends and chase each other up a hill. let's go make a personal best, then beat it with your personal better than best. let's go bring the world's best instructors right to you. better yet, let's go bring the entire new york studio - live. let's go anytime, anywhere, with anyone who's willing. and let's go do

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okay, cramerica. it's time for me to kek out the twitter sphere and take a look at some of the tweets you sent @jim cramer let's catch up with our viewers at home and see what's trending in their portfolios. first up, @fridge 93 who says @jim cramer you talk in your book about research for a new investor what are a few pieces of information to look for when stock picking. i want you to know the product, what it does and i want you to like it. a lot of times stocks go down after you buy them if you like the product, you'll be more inclined to panic and get out. read get rich carefully. i tell you exactly how to rate a stock. you can do it on a numbered basis and just figure out where it should stand versus others. 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 sutera @patsutera @jim cramer for retirement is it best to dollar cost average index funds or wait and buy on market downturns/mad tweets here's the way i do it i try to do it 1/12 a month, each month but if there's a big break in the market, i accelerate some i would do later in the year and put them to work in that break even up to a third of it i like to take advantage of the declines and accelerate what i put in i've done that for years and years and it's worked for me otherwise divide by 1/12th next up is larry this morning my wife said what would they do without cramer my wife said the same thing. look, you know, i'm a teacher. i got some books

i try to come out here every night. it's important for people to know 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 over the evolution and say all he does is tell to you trade in and out of this or 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 @jim cramer would you mind mind sharing your sunday stock routine please. >> all right i get this thing from standard & poor's it's pushed to me via e-mail it's hundreds and hundreds of charts i go over each one i have a file that says good, bad, question mark, try to figure out why that went up and 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 where i look at what trends i see and then for the rest of the week, i send my staff which stocks i don't understand and why and some theories about why we should be doing certain pieces it takes up almost all sunday except for when the eagles are playing. stick with cramer. your digestive system has billions of bacteria, but life can throw them off balance. re-align yourself, with align probiotic.

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at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today. cy like to say there's always a bull market somewhere. i promise to find it just for you right here on "mad money." i'm jim cramer and i'll 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." ♪ my name is curt campbell, and i live in beautiful egg harbor, wisconsin, with my fabulous wife, amy joe, and i'm the owner of oilerie usa. amy joe is the love of my life. we were high-school sweethearts. we've been married 38 amazing years. she's my best friend, my rock, my light. in 2003, we were in poland. we came across a small shop