Cramer rejects Buffett’s stance on stock picking, endorses a hybrid investing model


In this article

CNBC’s Jim Cramer on Monday rejected Warren Buffett’s assertion that Wall Street’s new retail investors stay away from individual stock picking in favor of investing in index funds.

“I respect Warren Buffett, but I’ll always be a Peter Lynch guy,” Cramer said on “Mad Money,” reacting to the comments from the Berkshire Hathaway chairman and CEO. Cramer favors the investment philosophy of Lynch, the legendary investor known for his management of Fidelity’s Magellan Fund and his book on investing, “One Up on Wall Street.”

Lynch’s philosophy is based on an investor taking advantage of his or her ability to observe, study and take action on a stock, Cramer said.

“That’s why I believe in a hybrid model. I don’t share Buffett’s contempt for homegamers who try to pick stocks, nor do I want you to go all-in on individual stocks,” he said.

Cramer provided a list of retail stock ideas for investors to test Lynch’s principles.

“I don’t mean to make it sound simple. If you want to invest like Peter Lynch you need to actually visit these places or try things on, whatever sparks your curiosity,” said Cramer, suggesting that viewers read Lynch’s book. “But I think one or two of these reopening plays go well with an index fund in your retirement account.”

A spokesperson for Berkshire Hathaway did not immediately return a request for comment.

Disclosure: Cramer’s charitable trust owns shares of Walmart and Costco.


Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer’s world? Hit him up!
Mad Money TwitterJim Cramer TwitterFacebookInstagram

Questions, comments, suggestions for the “Mad Money” website?

Products You May Like

Articles You May Like

As India resists calls for a national lockdown, one economist says states should decide
Government offers discounts for high-speed internet. Here’s who’s eligible and how to sign up
Macy’s to build office tower atop Herald Square flagship store
Fed’s Bullard says ‘it’s too early to talk taper’ while the pandemic continues
The creator of dogecoin on the cryptocurrency’s appeal: ‘There’s something pure about it’

Leave a Reply

Your email address will not be published. Required fields are marked *