Former hedge fund manager says people ‘know the price of everything, but the value of nothing’

24/7 Wall St. Insights

• Former hedge fund manager and current Mad Money host Jim Cramer has an estimated net worth of $150 million, and his helpful advice can empower you to take control of your finances.
• Recognizing your financial situation is crucial in your 60s, as you’re approaching big changes like retirement.
• Cramer’s advice for people in their 60s includes knowing the value of what you have, stick to your guns, and don’t confuse cheap with good.
• Also: Discover the “Next NVIDIA”

As a child, Jim Cramer was fascinated by the stock market. Where other children spent time reading, watching movies, or playing outside, young Cramer began memorizing corporate stock symbols and planning his own example portfolios. His hard work clearly played off. Cramer worked at Goldman Sachs before starting his own hedge fund — Cramer Levy Partners — and eventually transitioning to the host of Mad Money on CNBC. Today, Cramer aims to offer investment tips and stock market winners to the community, empowering others with financial skills to succeed.

Cramer’s advice is especially helpful for people in their 60s. Your 60s can bring many financial changes, the biggest of which is usually retirement. You want to ensure that you have enough funds in your 401(k)s and IRAs to keep you feeling stable through retirement. But other expenses may include changing healthcare expenses — especially if you need to take advantage of something like Medicare or Medicaid — and lifestyle expenses. Without money coming in, you may need to consider changing your lifestyle. Being familiar with your finances is more important than ever. (This new survey reveals what it takes to be happy in retirement.)

Cramer’s investment strategy is characterized by his emphasis on thorough research, including fundamental analysis of companies and their financials, known as his buy and homework approach. With that in mind, 24/7 Wall St. has created a list of 11 Jim Cramer quotes every 60-year-old needs to hear. To do so, we scoured quote websites, read and watched Cramer’s biggest interviews, and found the information that can help you to gain control of your future.

Here are the 11 Jim Cramer quotes that resonate with people in their 60s:

Why It Matters

Among the most respected voices on Wall Street, Jim Cramer’s advice regarding investments is easy to digest and implement. Cramer encourages a disciplined approach to investing, combining research, diversification, and a willingness to stay informed. As such, we at 24/7 Wall St. think he is a solid resource for those seeking financial advice, especially those in their 60s. Since retirement is looming in the future, having information to help strengthen your financial situation is only helpful. (Professionals debunk myths about retirement.)

1. The Short Term Doesn’t Matter (As Much)

• “The intrinsic value of stocks is not influenced by what happens to them in the short term.” – Jim Cramer

Your Stocks Are Here to Stay

Investing in the stock market is a long-term commitment. While short-term fluctuations and volatility are inevitable, the overall trajectory of the market tends to be upward. By taking a long-term perspective, investors can ride out temporary downturns. Long-term investing allows for the opportunity to capitalize on the power of time in building wealth, preparing you for future gains and success.

2. Aim for 60%

• “In this business, if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.” – Jim Cramer

Things Aren’t Always In Your Favor

The notion that nobody will ever have a perfect track record in the stock market is grounded in the unpredictability and volatility of financial markets. Even the most experienced investors, analysts, and fund managers make occasional misjudgments or encounter unforeseen market events that lead to losses. While most investors have success over time, accepting this reality reiterates the importance of a long-term approach and the wisdom of diversification, especially as you prepare for your future.

3. Diversify Your Portfolio

• “Invest at least 20% of your portfolio in an index fund.” – Jim Cramer

Why Index Funds

An index fund is a mutual fund designed to mimic the performance of a specific financial market, like the Dow Jones Industrial Average, Nasdaq Composite, and S&P 500, by holding the same securities in the same proportions. Investing in index funds is a sound strategy. Index funds allow for broader exposure in the market, which helps manage risk. They require minimal management and research, which translates to lower associated fees, which result in higher returns over time. Index funds offer simplicity and ease of use, making them accessible to novice investors, while still providing the potential for long-term gains. If you’re in your 60s, investing in an index fund can get you set up for future retirement goals.

4. Bears Can Be Friendly

• “Don’t move money from Bear, that’s just silly. Don’t be silly.” – Jim Cramer

Especially When Left Alone

Admittedly, the quote above blew up in Cramer’s face after his suggestion not to pull money from Bear Stearns just before it collapsed. But we see not fearing “the Bear” in another light: the bear market. Bear markets, where the value of your portfolio falls, can be scary, especially for those in their 60s who are nearing retirement. But you can benefit from the eventual market recovery because bear markets are often followed by bull markets. Selling during a bear market will lock in losses, whereas holding onto investments provides the opportunity for their value to rebound. Continuing to invest in a bear market also offers advantages. By buying at lower prices during a downturn, you can position yourself for long-term growth. Maintaining a long-term perspective and sticking to a disciplined investment strategy can help investors weather the volatility of bear markets and achieve their financial goals.

5. Making Money Isn’t Scary

• “The key to making money in stocks is not to get scared out of them.” – Jim Cramer

When You Know What You’re Doing

Becoming knowledgeable about investing through research and education is a splendid way to cast away fear. Focus on the long-term and commit to maintaining your investments. Regularly review your portfolio and make adjustments as needed, but don’t react impulsively to short-term market fluctuations. If you’re getting close to retirement age, being intentional about your decisions can help you maintain your financial stability.

That being said, accept the fact that volatility is a natural part of investing and view downturns as potential buying opportunities rather than sources of fear. If you’re feeling anxious, seek reassurance from a knowledgeable friend or financial advisor. You’ll be fine. As long as you do your homework.

6. Don’t Confuse Good with Cheap

• “Don’t confuse a cheap stock with a good stock.” – Jim Cramer

Know The Difference

Investing in a cheap stock can be tempting — especially with big dreams of the stock taking off, and you capitalizing on the gains. But good and cheap don’t always correlate. Determining if a cheap stock is also a good stock requires research, or as Cramer calls it, homework. Factors such as the company’s financial health and growth potential, along with key financial metrics like earnings growth and debt levels inform the value of the stock. A cheap stock that checks all the boxes is potentially a good investment opportunity. But only after you do your homework.

7. Be Your Own Boss

• “I don’t want you to take advice from me or anyone else. Do your homework. Seek out information on your own.” – Jim Cramer

Take The Reins

Being an informed investor is critical to achieving long-term success in the stock market. If you’re knowledgeable about financial terms and economic indicators, you can make more informed choices and avoid costly mistakes. There are several excellent resources available to educate yourself about investing. Consulting with a financial advisor, online platforms, and investing forums provide opportunities for learning from others’ experiences.

8. Have Fun with It

• “I’ve always said that investing should be fun, not stressful.” – Jim Cramer

You Deserve It

To help boost your financial fun meter, consider investing in companies that cater to your hobbies and interests. Set goals and celebrate them once achieved. Join investment clubs or online communities where you’ll connect with like-minded folks. Keeping abreast of current economic trends and policies increases your understanding of the market and promotes sound purchases that will alleviate your stress in the long run — and prepare you for the retirement of your dreams.

9. Stick To Your Goals

• “Your investing goals don’t mean anything unless you can follow through with them.” – Jim Cramer

Like Glue

Staying invested in your investments is essential for maximizing long-term returns and achieving financial goals. Maintaining a disciplined approach avoids decision-making driven by short-term market volatility, which can derail investment plans. Consistency and patience are key to successful investing, allowing you to ride out temporary downturns and reap the rewards of staying committed to your investment strategy. Staying invested includes not borrowing against your retirement. Major purchases like cars, trips, and tuition should be funded through savings.

1o. No Degree Is Necessary

• “Credentials, schmedentials.” – Jim Cramer

Enough On Your Own

You don’t need credentials to succeed in the stock market. While formal education and certifications provide valuable knowledge and insights, successful investing often comes down to factors like discipline, patience, research, and a solid understanding of market principles. Many self-taught investors have achieved remarkable success in the market. With an abundance of educational resources available online, anyone with dedication and a passion for learning (including you!) can develop the skills to navigate the stock market effectively.

11. Know Value, Not Just Price

• “The stock market is filled with individuals who know the price of everything, but the value of nothing.” – Jim Cramer

Educate Yourself

The difference between focusing solely on price and understanding the underlying value of an investment is paramount to success playing the market. Price represents what one pays for an asset. However, the true value of the asset lies in its fundamental earnings potential, growth prospects, and intrinsic worth. While price fluctuations are inevitable in the short term, understanding the underlying value of a stock allows you to make informed decisions based on long-term sustainability and growth potential. Ignoring value in favor of price alone can lead to misguided investments driven by short-term trends. As Jim Cramer would tell you, the best way to determine the value of a stock is through educating yourself. And it’s never too late to do that, no matter your age. Now, go do your homework!

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