Jim Cramer believes in the stock market and the ability for individual investors to profit from it. But now the frenetic host of CNBC’s Mad Money advises investors to get rich carefully, holding positions for as long as five years.
“We accept that this market has overpowered most small investors,” writes Cramer in his latest book Jim Cramer’s Get Rich Carefully. But he’s confident those same investors “can beat the averages” — at least with the mad money they have to speculate with — if they follow his recommendations.
He advises investors to “choose the ones you like…let the market come down…[then] in addition to your diversified mutual funds, [with] your mad money buy one of these.” More specifically, buy stocks that that fall into one of these categories.
One big advantage of these themes, says Cramer, is that they don’t depend on a robust economy for growth. Cramer also recommends that investors “do some speculation.” His choice speculative picks today: Tesla Motors Inc (NASDAQ:TSLA) — “a hard-to-value to value stock but it stands for something”– Netflix, Inc. (NASDAQ:NFLX), SolarCity Corp (NASDAQ:SCTY) and Twitter Inc (NYSE:TWTR), which he likes for the long term.
Watch the video below for more details: