OT: Jim Cramer Recommends Concentrated Port

Sometimes the screaming guy says stuff that kind of makes sense.



yeah, I’ve heard Cramer say that for some time now - don’t own more stocks than you can keep track of. But he also recommends a big chunk in a low-cost index fund, like VOO from Vanguard. And he is still a diversification guy at heart.

The issue here is that Cramer also advocates that investors raise cash and sit on sidelines “if they don’t like sectors or the market at a given time”. To me this is contradictory to the notion that one CANNOT time the market. As Saul and many of us have reflected here repeatedly, there really is no way to time the market, and any attempt to do so comes with significant risk of missing market-beating returns.

“Investors” have said repeatedly for the past 2, 4, 6, 8 years that the market looks too high. So anyone who moved investment capital into cash just because of the “market is too high perception” has forgone incredible returns over that period. So I, like many here, choose to invest what I can afford to keep invested over a 5+ year period of time, and have done so within a concentrated portfolio of 10-12 stocks. I don’t sweat short-term market fluctuations. And my returns like so many here have been multiples higher than the market for years.

Folks, we have something incredible here. Let’s continue helping each other learn and prosper.

Fool on!



Busted! That’s totally a one-liner, portfolio-oriented posting. :stuck_out_tongue: Go check out the forum rules!


However, this discussion is helping me to think about tightening things up and dropping some small positions that add no substance to my family’s portfolio.

I used to listen to Jim Cramer a lot, my listening varies as I have time. He plays a game called “Are You Diversified?” and on the one hand, I think that Saul’s portfolio might fail due to being overweight on software. On the other hand, I love Saul’s posts where he addresses diversification in his portfolio. I’m trying to find a recent one but coming up short, but I like it when he discusses this issue.

I am too wimpy to go to 10 stocks but am working on getting it down a little bit at a time. Currently at 24.



Karen…we have a couple things in common:
I also have too many stocks…old and new, but bought some ESTC, today, thanks to this wonderful site!!
Madeline Island,long ago. Trying to find you online. WISMO@aol.com