Being in Japan, I know very little about Jim Cramer’s Mad Money show. I’ve seen it mentioned on a few other blogs in the past and ran across a piece in the news that his book Jim Cramer’s Real Money: Sane Investing in an Insane World was named best personal finance book of 2005 by Books for a Better Life. From that I assumed that the advice he gave must be at least somewhat decent.
I came across a clip from one of his shows and it was one of the worst pieces of advice I had ever heard. While it may have worked for him, that doesn’t mean that it’s sound financial advice for the majority of people. Basically, he was bragging to the Harvard students that he took his loan money for law school and instead of paying his tuition with it, he invested the money in the stock market (and then congratulates himself on being smart while the college crowd whoops it up) Ummmm, while that might make a nice sound bite, that is just plain and simply a stupid money move for most people to make and recommending it as general financial advice is just plain crazy.
Here’s the clip – it may load a bit slowly, so have patience.