Mad Money w/ Jim Cramer 9/22/26

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1:01My mission is simple. To make you money. I'm here to level the playing field for all investors. There's always a more market summer. And I promise to help you find it. Man money starts now. Hey, I'm Kramer. Welcome to Man Money. Welcome to Kramerica. My family and my friends, I'm just trying to make you little money. My job is not just to entertain and educate, but I want to teach you and explain. And tonight I'm doing it. So call me at 1 in 100, 7th, 3CBC, or Tweet Bitch in Kramer. We too often invest for the day. I always hear people talk about what's working at the moment. And the old days when the great Mark Haynes ruled the mornings around here, I remember that each time I co-hosted, he would introduce me as Reverend Jim Bob from the church of what's happening now. It was fun back then. It seemed like everyone was running their own personal hedge fund. There was an understanding that a stock could be here today and go in tomorrow and everything was fine. Everyone was fine with it.

2:02Those days are over though. And if you recommend a stock for a trade, even if you say buy it today for the analyst meeting tomorrow and then you sell, there will always be a video. YouTube kicking around shows you like the stock but never gave the sell call. So we've gone beyond that. We're all about educating you to be a better investor. The same thing we do every day at a higher intense level at the CMBC investing club that I want you to join. Tonight I want to introduce you to this concept that is so important and it's called suit ability. Basically, what stocks fit you? What investments are right for you? Not for this week, not for this month, but for your age, for your temperament. I've asserted the concept of suitability when I was in training at Goldman Sachs for the group that helped small institutions and individuals now called private wealth management. I've been buying individual stocks for myself and others for a half decade before I got to Goldman in 1983 as a summer engine. At the time I was watching financial news network between classes at Harvard Law School.

3:04That was the predecessor to CMBC. Whenever I could, I'd run over to the Harvard Business School library where they had all these old research reports from long gone firms like BASE, Sherson Lehman about stocks, totally on a catch as catch can't basis. Those of you who grew up with the Internet have no idea how hard it was to access information in the 80s. If I like to company out at half the Astralibrary and frame microfeesh of the firm's SEC filies, I don't know, do they still have microfeasions? These were little pieces of plastic that you stuck into a machine and you read the filies all which were usually six months old by the time I got them. Everything I did back then is online now, an instant and updated. The imperfections in the market back then were legion. Now everyone can know everything, but one that later tonight. I spent all week trying to find one stock that I thought would work. One stock that would be good for a week, or anyone who wanted to invest could take the idea and then I changed my answer machine, yes, my answer machine, another thing we got rid of, I changed the message to a 22nd wrap on the stock.

4:06Don't know answer machines? Can you imagine? Well, some company used to make them with all those jobs wiped out by yourself. They were the industry services for that matter, talking about jobs that aren't coming back. Anyway, I'd say, hi, this is Jim, I'm not here right now, but I like both the chart and the recent numbers from people who express a long since bankrupt airline that I used to get down to New York for job interviews. My best one, a recommendation from monolithic memories, a smoke show of a company with a red hot stock that was run by a guy named Zeve Dory who, two decades later, helped save Tesla back when it was struggling during the financial crisis. He was the last CEO before Elon Musk. He lightweight model with his shot up like a rocket that we can only ended up being acquired by a van spike. We're devices at a very big premium. It was the best cranbers not at home call this machine hit I had ever had. And believe it or not, Jim is not home, became a rallying cry for lots of people who were calling me back then, hoping I wasn't home so they could get the tip without having to interact with me.

5:06Not long after I got a job at Goldman Sachs, one of the officers at the firm called me in. He got the machine with this record. He heard the recommendation. He told me to call as soon as possible. I did. And he asked me if I knew what suitability was. I had no idea. So he introduced me to the concept. He asked me, did I ever consider that many people who call me may not be ready for the stock of the hottest semiconductor company in the land and that I was recommending it to them one on one without any sense of it, whether it was right for them, suitability. Was it soup? I said I always took the stocks with pretty much a caveat after situation. We all know that on my say vacuum cleaners, you can't take stocks back to the store and get a refund. They come with no guarantee. So what's it deal? This executive hammered it into my head that before you recommend a stock on a one-on-ones level at a registered broker's house of all places, you had to know what that person wanted out of. What do they want from stocks? You had to know if the stock was right for them and for their level of risk dollars.

6:10One of the memories he said wasn't exactly right for anyone other than the most risk-seeking investors out there. The financial limit of bungee jumpers. So let's start there. Did I want you to ask yourself, what is your tolerance? How much risk do you want out of a stock? You see stocks are pretty peculiar pieces of merchandise when you think about it. You buy a car and you know it's not worth as much the moment it leaves the lot, correct? But there are all sorts of warranties. You buy a house and you know it could burn down the next day. However, you can buy it before you buy it. You got a binder with insurance. So if it does burn down, you can get your money back. Clothes can be returned. Devices return phones, PCs, washers, dryers, you name it. With stocks, if you buy a share of Nike and the next day Goldman Sachs downgrades it and then a day after Foot Locker says there's a bit of slowdown in Jordan's, you can't go back to your broker and say, hey chief, you never told me this could happen. I'm down 300 bucks on 2,000 shares and I'm out of six. Hey man, I'm losing too much money. I want my money back. Sorry, caveat empty.

7:11Now back then when I got started it would have been incumbent upon the broker to recognize that the buyer would know these things could happen. Maybe the broker should never have been recommending that stock to begin with. You get the point though. Because you can't take stocks back and get the same price because there's no real insurance although you could buy an expensive put option underneath with a cost that lowers the risk of Nike pretty dramatically and has to be renewed constantly. Suitability is incredibly important. That's why for the next hour you're going to learn how to measure your own tolerance versus a variety of factors because these days with digital brokers there's no real protection. Just a sign form that says you get it. You may not know what you're getting into. Tonight the bottom line that stops here. By the end of this show you'll know what suits you and what doesn't no matter what your age or your style. Or to put it that another way. Cavie and answer no. Just buyer be a little more aware of what you might be committing your hard earned dollars to when you purchase a stock. Let's take calls. Let's go to Kyle and your Jersey Kyle.

8:12That's friend Jim Kramer. How are you buddy? I am good Kyle. Thanks for calling. How can I help you? So I was wondering. First of all I am an investment club member and this is my third time talking to you man. Terrific. I know you personally. I love you. Thank you. I would like to know how often you look at RSI or MACD data when you're buying or selling a stock. How I'm going to look at the relative strength index on the back. I have to tell you I look all the time. I do not like the buy stocks for the chart as bad. It's one of the reasons why we do off the charts on Tuesdays. I think it's incredibly important Kyle because others do. And anything that's important to others is important to me. Mark in New York. Mark. What is up Jimmy Chow? Chow man here. What's happening? What happened? I have an IRA account for my retirement and I was wondering if it's okay to see some profits and then read the cash in my account at another time.

9:16Well you know I prefer to let it run unless the stock is really soured because I just think I don't want you to remember investing for the long term in IRA and I have to believe that what you saw in the stock is continued. Otherwise look if you have to take a loss, take a loss, but keep investing in your IRA. That's the best thing you do. Let's go to Nick in Florida. Please Nick. Bobo Buehjajimmi Chill. Thank you. Thank you. When you help your children invest, is it more important to save up and give them say a big snowball, a big lump of money when they get married, or set them up early, literally in the infant, pay the baby with say a small amount in dividend stocks to rephrase it in such a way which is more important, the size of the snowball or the height of the hill that compounds it. Wow. I love that. Well first I can't help my kids after they do that in their own because of my job and not allowed to know what they're up to. But what I always say to my kids is that look, I want you to go make as much money as possible with half the money and the other half I want you to do index funds and go learn some stocks.

10:18I think when they finally decide what they're going to do with their lives, they can do it, but that's my advice to them now. I don't know what they own because that wouldn't be right. By the end of tonight's show, I hope you'll know what suits you and what doesn't no matter what your age or your investing style. Tonight I'm helping you form the necessary investing strategies you need at all stages of your life. From young to old, just like the gentleman we just talked to, I'm going to meet you where you are and take you where you need to be. So stay with Kramer. Angel, your mission has been very successful in our family.

11:21I listen to your show multiple times a week for a visit knowledge. I just want to say thanks. I love your show. Thanks for always looking off the rule of the act. I'm so excited for all you've done to make me a better investor. I got a full Kramer because I can't make a move without this guy. I want to make people better investors if they make money fantastic. Let's go to work. Fidelity active ETFs have the flexibility to shift and transform as markets do the same. So instead of just riding an index, they can seek to outperform it by adapting to market conditions and pursuing new opportunities as they emerge. And while you get the potential outperformance of an actively managed fund, you can still buy and sell it on your terms just like any other ETF. This can change in real time. Make sure your ETF can too. Learn more at fidelity.com slash active ETFs. Before investing in any exchange traded fund, you should consider its investment objectives,

12:24risks, charges, and expenses. Contact fidelity for a prospectus, an offering circular or if available, a summary prospectus containing this information. Read it carefully. While active ETFs offer the potential to outperform an index, these products may more significantly trail an index as compared with passive ETFs. ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Fidelity Brokers Services LLC member NYSESIPC. At US Bank, we believe the most rewarding wins are when we work like a team. That's why US Bank smartly checking and savings are designed to work together so we can reward you more. That's the power of us. Before AT&T Business Wireless, it was hard to keep our deliveries on track. Missed turns and delayed routes would quickly impact the business.

13:25One day, our driver even had to make a 14 point turn just to get back on route. A 14 point turn. Now with AT&T Business Wireless, routes updating real time and deliveries arrive on schedule, which means we could spend less time dealing with disruptions and more time focused on running the business. In the connection matters, at SB AT&T, get AT&T Business at ATT.com slash 5G Network. Tonight's all about you, about knowing what you can and can't do because it's not right for you, because it's not suitable. Now there are all kinds of suitability considerations in the business. First and foremost, there's age suitability. I want to start with kids, prickly babies. That money's been on so long now that there are kids who were born who are in their teens. If their parents listened to my best pinch, well they got started. They'd already be well on their way towards some great wealth.

14:29Parents, grandparents, listen up. You can give all sorts of things to families that just had babies. I want you to open up accounts for them or at least give them some shares of stock so that from the earliest moment you can start the process of saving. Now, here's my commercial for something that doesn't need a commercial because almost every expert you hear from is in love with them. I'm talking about index funds, which aren't perfect, but they're the best way to go. If you want to put your money on order pilot and you can't spend a lot of time looking at individual stocks, just a bike and better the home market. So if you just had a kid, you can take a couple of hundred smackers and buy some shares at an index fund for them. I'm partial to GPTS that mirror the S&B 500 because those 500 stocks represent the bedrock of America's publicly traded companies. As a companion, I like any sort of total return fund that has an even broader rate of stocks. A mix of both I think is the terrific way to start. Your broker or the brokerage site you use might have some fund that's higher growth, a junior growth fund, and that can be a nice augmentation because you're buying for an infant who's got his or her whole life ahead of them, their whole life.

15:33These kinds of things can really compound over time. Meaning, if you let it run, then money can build up on itself. Now you might say, why am I watching a show about stocks of all this guy's doing his talk about index funds? Look, I could come out here every night and talk index funds, but it wouldn't make for a version of show, would it? I wouldn't be giving me my best advice either. I teach you how to pick individual stocks both here, but really a huge amount in the CMBC investing club because I believe that is the most effective way to go. But I like to teach in the investing club. It's my favorite venue. I think you can build a portfolio yourself that can do better than most professional money managers or index funds. You can control your own money. But I'm perfectly sanguine about the notion that stock picking and index fund investing can coexist. I just wish the proselytizers of index funds weren't such fundamentalists about how bad everything else is. So I say let's give both a try. When you're saving for your kids, definitely start with the index fund now. That's a good stock for a kid just born. I think you should pick two kinds of stocks for your children.

16:35One with a dividend where you can reinvest those dividend payments, get the power of compounding. That is such a good thing to teach people. We often hear the term dividend aristocrats, companies that have long histories, certainly more than 25 years of increasing dividends. Love. It's hard to go wrong with the big, well-run consumer package good place. Here I'm talking about a company like Trident Group, Procter and Gable PepsiCo. The best way to find out my absolute favors as soon as possible is to join that CMEC investing club I've mentioned. And watch what we do with a child which was. At the same time you also want to give your kids something with a little more juice. Like the great growth stocks of an era. I mean, I've talked about the apples, the inventors, the Tesla's, the, the Metis. Now if you do set up an account for your kids, may I please suggest going with a uniform gift to Miner's Act account. I'm going to call it UGMA for short, okay? UGMA. The rules keep changing for these, but suffice to say that you can give children money that can accumulate somewhat tax for your overtime.

17:35Again, the rules have changed so much from when I set up the mutual fund for my kids who tax favorite gifts. I love them because they were like trust that you didn't need lawyers to create. Check with your broker for the latest rules for you and the state you're in. They do differ. I think it's one of the better tax breaks around though. I know honey for tax breaks may not sound very exciting, but that's how you take care of your family. Besides, who doesn't want free money? There's one caveat with these UGMA accounts though. If your kid is planning to get financial aid in college, you want to be very careful because that UGMA money can count as theirs and might get them disqualified depending on the institution. What other thought I like? You know what I believe a goal is a terrific insurance policy for any portfolio. I'm going to talk more about this later tonight, but a highly unusual yet totally blessed by me idea is to buy gold or silver coins for your kids or just pieces of gold or silver. That's what slivers of slivers for my kids from a deal and pretty much forgotten about them. They may or may not increase. These are polar opposites of growth or income stocks. They don't throw off money.

18:35They don't throw anything. But increasingly times when inflation comes worrying back and we now know it's certainly capable of happening. They go to pretty high levels that season's the 80s. There's nothing that's hold up in value under the scenario better than mansions, masterpiece of art and precious metals. One caveat. If you do this, remember to put the gold or silver in a safe place, please. That does not mean putting it on our masters and it certainly doesn't mean putting a hole in the ground in the backyard. A safety deposit box won't want my style. So buy them mine. When a child's born, think about setting up a uniform gift to miners account and put index funds or individual stocks in there. Specifically, I like cheap ETFs that mirror the SB 500 and on the stock side, your kids will want to at least one dividend stock. And one dividend stock for income because a high yield stock can double the value of that investment by the time your baby turns 10. You also want one high quality, gross stock that you believe in for the long haul because those come back up big gains.

19:36Don't put this off. This must be done at the earliest moment to get the most involved for your brand new loved one. No one has ever regretted saving too early for their kids. They have money's back in the bread. Coming up, want to turn back to clock and invest in companies for all the kids out there? Kramer's got you covered. Next. Oh, yeah, for the emperor of Kramer. A vulnerable J.J. Kramer. You got me jumping around my office right now. Thank you so much for all you do for us. I enjoy your show and the kind of very entertaining and informative. I watched your first episode of Mad Money back in 2005 and I've been watching every single episode ever since. On this Mad Money, every night at 6 p.m. Eastern. Plus, join the CNBC investing club and stick with Kramer around the clock. For a limited time, you can get a big Mac meal for just $8. That's a burger, fries, and a drink.

20:37They don't call it an extra value meal for nothing. Get a big Mac meal only at McDonald's. Price and participation may vary. Promotion pricing may be lower than meal pricing. AI is everywhere. Everyone wants it. The challenge is unlocking its value. CDW helps organizations move from idea to implementation, with the expertise, technology and partnerships needed to make AI work in the real world. Don't just launch AI. Land it. Because when AI delivers results, it's amazing. We configure, optimize, and deliver the tech that runs business. CDW make amazing happen. Before AT&T Business Wireless, it was hard to keep our deliveries on track. Missed turns and delayed routes would quickly impact the business. One day, our driver even had to make a 14-point turn just to get back on route. A 14-point turn. Now, with AT&T Business Wireless, routes updating real-time and deliveries arrive on schedule, which means we can spend less time dealing with disruptions and more time focused on

21:38running the business. When the connection matters, it has to be AT&T. AT&T Business ATT.com slash 5G Network. We're going over knowing thyself tonight. How to not just buy the right stocks, but the stocks that are right for you. We've discussed the importance of suitability and the essence of what's suitable for the newborns. But what's suitable for the kids? What do you do for them? I think you should do everything in your power to get your kids involved in investing in stocks, teaching them to stocks represent pieces of companies that they might like. Now, let's be honest, these days most parents probably think they couldn't explain what a stock is to a kid, especially a young kid. That's not how I grew up in my house, though. As much as I love sports, and we even had tickets for the 64-world series we did make it, but we had them. Well, to me, stocks were supreme. My father had gotten a tip from his brother, who knew a stockbroker.

22:40He played tennis with. Guy told him to go buy a company shares a national video, which for all I know would have made it if it started right now as a Facebook live show. But in the 60s, it was a total bust that cost our family a fortune. Pop it always bring home the fill off your bowl. And they went out of business. The afternoon edition. And he wouldn't give me the sports section. He gave me the business section. He wanted me to learn about stocks. I'd look up closing prices to market closer early back then. I tried to anticipate where stocks were headed, based on moving averages of how they were doing. Straight line, this kind of thing. It was a game of momentum. Game most of the time, I only knew the stocks by their abbreviations. In what we call small-agent type. Openers fun game. I kept the ledger to see how I would have done one tax, which was Texas Instruments, or maybe was TGS, which was Texas Gulf Solver, or LTV, or Rockwell. I most of the companies that have disappeared and gotten acquired were just still hanging out in trade. I also spent a lot of airline stocks because suckers were always buying those. And most kids are suckers.

23:41Each year in national mostly, but pretty enough too. They were household days because of advertising. Of course, most people under 50 have never heard of any of these. I like the stock picking process so much. I got my whole fifth grade class in Penn Matter and Vol. We'd all pick stocks and keep track of the closing prices for a week to see who could make the most money. The problem, of course, is that I was doing the exact opposite of what I should have been doing, although metaphorically. What I was doing then is still being done now. Just picking stocks by how fast they were climbing, backing away from them if they're climb, seem overextended, or just slowed in velocity. Instead, I should have been picking the stocks of companies I knew, and asking my dad for a mission to buy actually one or two shares, along with the money to pay for them, which probably would have been a deal breaker. So let's go over what would have been right and what was wrong in the picture I just painted. Think of this as goofess and gallant from the highlights magazines that you always used to find in the dentist's office. Gallant, first of all, would never have taken a tip about national video from his brother, who taken a tip from his tennis partner, who worked by the way for the aforementioned

24:43base. I learned later my dad had no idea what national video even did. Imagine that he bought some. He didn't even know what they did. Now, you can find out more about it via Google right now than you could learn from Jack the broker back then. National video you see made vacuum tubes for TV sets. In the old days, when you had a problem with your television, it was usually because it had tube inside it blown. Of course, the technology left national video behind, so it went bankrupt. Closed the stores about five years after pop bought the stock. But it had been going straight down since about five days after he bought it. The average downed too many times to tell. But I know we had many a silent meal, thanks to that. Days declined in that God forsaken stock of national video. I think we lost most of what we had as a family. There were a host of better stocks you could have picked back in the 60s. Most weren't that good according to the movie average, but they paid generous dividends and retrospect what we needed more than anything else was income. Me, the idea of picking stocks simply because they were going up was in a tentacle to the

25:44idea of buying stocks in companies and was more suited to dark throwing. At least I picked the hot ones, many of which were defense contractors that were getting rich as LBJ escalated to Vietnam War. Well for me, the game was a lot of fun. But in retrospect, I learned the most about stocks from two three M board games. Yes, they used to have board games. Those board games were called Acquire and Stocks and Bonds. My father sold games for 3M back then. It was a job. Acquire was all about mergers and acquisitions. Stocks and Bonds was a fantastic game about accumulating wealth through risky or conservative stocks. By the way, you can get those. They're all an e-bay. You can see what I mean. These days we have whole fantasy leagues of stocks, but few of them can teach you more than that one board game. Stocks and Bonds, it holds up. Now let's come back in time and think about what I could have done differently. First when you're a little kid, you play with toys. It would have been natural to buy shares and tell our Hasbro. Now I'm not asking the kids to know what it means to own shares and accompany in terms

26:45of price earnings, multiple or even earnings. I'm simply saying it's a way to teach kids that a company can be owned by the public and you can own a share in that company too. They know toys. Of course, the irony should not be lost on my family. You imagine if my father had bought shares in a nice dividend stock for me? 3M rather than a national video. We had a box of Cheerios on our breakfast table every day of our lives. We could have bought general meals. What a fantastic stock. And then there were the real easy ones. What kid doesn't want to go to Disney World? It's that factor in not how many people sign up for the streaming service that will always try to be back to the stock. The Disney library alone should be enough to make you want to own shares in the company. But the theme park, I mean, come on. Let's not outthink this game. I don't know about Johnson's band-aids in shampoo. They were staples and they've since been moved to Kenview. I knew then as well as I know now that Kleenex is something you used to wipe your nose. There's a good company, Kimberly Clark. These are things we aren't even taught. They're imprinted. Father's Festwood.

27:45McDonald's is obvious or the incredibly well-run Chipotle if you want something a little more organic. Bottom line, please buy your kids a few shares in a name brand that they know and you know. Something they can see and hear and touch. Then put it away. The stock won't always work out. But think of what you like when you were little or when your parents like when they were little. See if it trades. You more than likely have a long term winner. More importantly, you've got a great hope to get your children into a lifetime of investing. Let's go to Madison in Texas. Madison. Hi, Jim. If I can get a guaranteed interest rate of over 5% by purchasing a six month treasury bond, why should I invest in the equity market given market conditions? Okay, because six months from now, those rates may be lower. You can continue to reinvest. But the stock market is far exceeded a longer term. Anything that you're going to get in a short term. I'm not against 5%, I own 5% paper myself. But I will tell you this, you want to take the long term view and you can buy a dividend

28:49yielding stock that is very good. Like an end bridge, like a one oak that will have growth, not just a dividend, no growth on any treasuries. Let's go to Annie in Rhode Island. Annie. Hi, Jim. Great to talk. Thanks for doing these teaching segments. I appreciate it. Thank you, and thank you. That's what I got to do. I got to teach more, and that's what I am tended to do for the rest of this of the run. What's going on? Hey, well, I really enjoy the segments you do on technical analysis, and I have two questions. Sure. One, what are the best resources if you want to study this? And how much should an amateur investor rely on charts versus fundamentals? Is it even appropriate? Great question. Look, I think charts are integral to your thinking. I think that I really trade Larry Williams. He's just Google Larry Williams. His stuff is the best. That's where I learn all of the great people that we have one have websites. But in the end, technical analysis, I think I have a very good chapter in my last book.

29:50Annie Gettbridge, carefully, I spend a lot of time talking about technical analysis. It must be done. Okay, here it is. I happen to have it right with me. This is what my dad sold for living. Can you imagine if he had bought this company 3M instead of a national video? We might have been able to not have to loupe the grape juice. How to put the water in the grape juice? I didn't even know why. It's because we didn't have stops and bonds. By our kids, a few shares, they're name brand. Something they can see and hear and touch. Like I learned with this stocks and bond game that is available on eBay and believe me, I wish I had the rights. I'd put it out again myself digitally. There's much more man money ahead. I'm giving you my best investing habit for the rest of your life. Teens, your time and everything between. And then I'm answering all your burning questions with my colleague, Jeff Marx. So stay with, forever. Bobo Bob Furrier, Jimmy Kiel. Your wisdom and teaching has been amazing.

30:50You have a talent that is superior plus educational. Yours stands out as being one of the best. I can't help but say thanks for all the good years of teaching. You know why your show is top around the world? It's because you do your homework. And that's why you make everybody money. You do your homework. Teens are incorrigible. The last thing they want to hear about is stocks. They have bigger fish to fry. Which I say, so what? I'm not going to tell them what to buy. I'm going to let them tell me. People watch this show have been huge beneficiaries of the unique consumer wisdom of my two daughters. We're always searching for ideas, both on air and especially for the CBC Investing Club. Many of those ideas have come from young people. Children, step children, their likes and dislikes can tell you great deal. Hey, that's why I got pine dominoes so passionately for over a decade as the stock world hire.

31:54We're peaking at the end of the pandemic like this, the other delivery place. Sure I met with Patrick Doyle. The day he became CEO, stock was a 10 bucks. Yes, the stuff did taste like cardboard before you reformulated the pizza in 2010. I love that whole line of advertising and told you I thought it was a good spec. So sure I recommend it. But that's not what made this stock a man money crown jewel. Nah. It was the technology. See my kids like your kids hate talking on the phone. They think it's for losers. But apps, they love them. And when my kids discovered the domino's app, well they were sold. No talking to people who might get their order wrong, no nervousness, no worries about where their pizza was in the process. That's two things that the great local joints couldn't do. And a no cheese option for the vegans, the ones that asked twice about the cheese as in, are you sure you want no cheese? I think that's because of my kids. Finally, there was the joy of being able to pay online before the delivery person got there. Kids don't want to fuss with money. Of course, dominoes were just a tip of the iceberg. The delivery apps went on to take over the world.

32:55All this technology was totally lost to me though. I never minded the phone. It was always patient about when the pizza would arrive, never cared about the interchange from the delivery person. And sure, I was not like the target audience. That's why I started calling dominoes a tech company that sells pizza, although now competitors can just outsource the darn stuff to the door dashboard. Many of you know the story of how I got religion on app. Roughly 20 years ago, my youngest daughter asked for a second iPod. Not because she lost it as I immediately accused her of doing, but because she wanted one in another color for her. See, they were fashion accessories. She didn't want it to clash with her outfits. Personal computers? I mean, come on. My various employers have never embraced Apple, but my kids, for a long time, they'd rather be called dead than use a Windows machine. They only wanted Macs. The iPhone was more controversial. They had a like change. They didn't like the plug change. They didn't want the earbuds. But what they really don't want is the Samsung. See, they're part of the Apple ecosystem. They much variety, much ignored Apple ecosystem.

33:58With its service chargers, they make it so they have to pay to store all their millions of pictures. What else? Fabulous. Google it, Dad. Yeah, that's how I found it out about Google now, Alphabet. And when I got the word from the kids, they weren't allowed to Google something that they were involved in in school, well, this count me in. When I was doing my senior thesis at Harvard, I used some mindless name dropping. We had access to the fabulous librarians at home. Their job took up anything you wanted. They had to go to the stacks for you as they were called and find out things that you would know where to look for. Well, that's all digital now. My kids get their news from their iPhones and they get their entertainment from Netflix. No, Fang wasn't purely their creation. I figured out Amazon, but Facebook, like I said, with the order. When you were freshman, you got a book. It was called Facebook. And then everybody's picture it. Facebook is a derivation of that Facebook. My kids were on Facebook earlier. My youngest got sick of Facebook early on, probably because I got on it. But then she went on to Instagram, which Facebook cleverly acquired and then kept it something separate.

34:58So you really didn't know it was part of something that older people had discovered. I didn't think the ads worked until we were undated with red hot chili pepper merchandise, but I wanted to click for something that as my daughter said, wasn't an ad, just a link. Oh, Lord, is everyone else freeing that their ad is just a link? But it seems that only Mark Zuckerberg has the fourth thought to care about the user experience to such extent that it works because the ads actually make sense. You do want to click on them. How about your polling? The kids love the freshman organic polling. So it's still do. They're vegetarians. My youngest returned pretty early after the food security instance. The only difference being that she didn't take out because she didn't want to be seen inside. All right, she wouldn't take out. Now that's perfect about the pics. But I recommended this stock from the low hundreds all the way to 2000 largely because they liked it so much. Eventually, your kids will age out of the key demographic. However, if you pay attention to their likes and dislikes, you can debt yourself decades worth of good stock picks. But once they reach a certain age, you need to pray for grandchildren if you want the

35:59freshest ideas. What if the pics themselves aren't any good? What if they're earned? That your kid likes to device the pits on your head and takes pictures or it fits on a wrist and measures steps. I don't know. Hey, that's the cost of learning. Remember, they have their whole lives ahead of them to make that money back if it's a screw up. You see, that's the beauty of teen investing. You can lose it and know one will notice. You pull the same kind of thing later in life as real consequences like here for me. So the bottom line here is, from now, you can learn from your teenage children. Trust me. Invest with them. And you will not regret it. May a money is back after the break. Coming up, are you trying to figure out which kinds of investments are right for your age? Well, look no further. Professor Kramer is taking up the assignment. Next. Good evening, Mr. Kramer. Thank you. Thank you for everything you do. You've been such a wonderful source of information with your teachings. I have to say thanks. Thank you for all your advice and saving us from ourselves.

37:02Your advice? Let me quit a job that I hated. I love you that dad. Thank you for everything you do. Thanks for making us money. More importantly, thanks for keeping us from losing money. All night, I've been talking to you about suitability. What's the suitable investment given your tolerance for risk and especially your age or when you're picking stocks for your kids to get the mission in the market? How about the rest of our lives? Sadly, as you get older, you have less flexibility. Fewer investments are indeed suitable. Not initially though. When you're in college, I don't expect you to put any money away at all. College costs too much. When I used to be doing my college tours, trying to get back in that game, I tried to get people to buy a share or two of a stock. But college saps the living daylights out of you in so many financial ways. I now regard it as a total hardship to even contemplate savings. But once you're out in the real world, it's imperative that you save.

38:05You can either work with a 4-1K plan at work or even better, a self-directed IRA. I always prefer the latter because you can pick stocks. Not just pick from options chosen by your employer, but typically have high fees that really knock your return down. That's for another show. This is where you have to begin the mix of index funds and individual stocks. Remember, I prefer both. There's too much risk in individual stocks to just put together portfolio of names of your own choosing. So in a minimum, I'm demanding that you put your first 10 grand of savings from your first job into an index fund. Yes, move 100 being my favorite. I've mentioned before. Now I know that some will argue with this. I see them arguing on social media. I don't care. I know the possibility of one really bad stock hurting your nest day even as early as in your 20s is simply too risky. With a nice slug of cash in index fund, no single stock or even sector can do that. But with the rest of your money behind your first that after that first $10,000, I do like stocks and I do want you to be diversified. That's why we play at my diversity around here when we can where I try to explain what

39:07diversification is and a breezy way. It's why we created the CBC Investing Club to show you how to invest using my chapel trust as an example. Although the trust is a lot of restrictions to prevent me from using the show to juke the stats as they say in one of my favorites of the wire. But I can tell you that if you want in-depth work on stocks, I've briefly mentioned on this show. The Investing Club is the way to go. So I set it up because I always talk about buying homework. I tell you that you need to buy a stock but then you have to keep up with it. Buying hold doesn't work. Remember back to early on the show when I discussed how hard it was to do the homework? Those trips to the Harvard Business School library are studying months old research and micro-feast. Now it's so easy that I've had to scrap one of my earlier road rules. You no longer need to spend an hour or a week studying each of your stocks. Sure you need to read the CAHPS clause. You can google articles, go lower, so many that you'll get sick of the process very quickly. You can have articles and research pushed to you along with charts that I only couldn't dreamed of having 30 years ago. Or you can read what we write at the Investing Club.

40:08Let us help you do the homework. Whatever makes you the most comfortable in your efforts to take charge of your money is what I favor. Remember, I want you to be either a good manager of your money or a good client. I do not have a preference. So let's talk about picking stocks as you get over. It's at this stage when you need to know that self in terms of risk. Until you get to the late 20s at the earliest, I want you to take tons of risk. Maybe more than you think you can handle. Whether you like it or not, because you've got your whole life to make that money back if something goes wrong. But when you get to your late 20s, all I can do is ask you to think about what you'll do in a sell-off. Do you have the way of a thought to take a decline in buy more? Or does a sell-off sick in you and make you wish you had no exposure? Can you accept that stocks go down? Not a silly question given how they typically do go up over a period. I'll be able to pre-year out and expo- period expoons down that are painful. These are crucial questions that only you can answer by yourself. I would like you to take more risk and own more individual stocks and of course, catch dresses once you put away that first 10,000 index fund.

41:10But once you're in your late 20s, I would hate to see you commit more than 20% of your money, your man money, to speculative growth stocks. As you get older, I want you to capture more income by only stocks that pay dividends. Perhaps add a fund that posts high dividends than the S&B 500 offers. But don't be too quick to do so. In fact, I wouldn't advise you to start investing for income until you're 30s. And even then, you should do it gradually and small. Only in your 40s though, I want you to introduce bonds to your portfolio. Now, the old guys would have been harassed if you don't start investing in fixed income by your 30s, let alone in your 40s. But the problem with that is twofold. First life expectancy, many people are out running their fortunes and the bond market itself. There aren't always a lot of risk-free fixed income alternatives that don't entail a lot of risk. Generally, I'd rather own a high yielding dividend stock that can raise its payout rather than a 30 or treasury bond that yields say 4%. Of course, as you get older, I recognize that most bonds do have that non-cavvy adept or provision. You can and do get your money back, can't say that was stocks. As you enter your 60s, it's easy to see how you can put up to 50% of your money into

42:13bonds and take bonds up to 10% more each decade. That brings us back to the notion of suitability. If you're kidding a little bit of risk, if you think the stock market is simply not as legitimate and asset classes at once was, then it is prone to such deep valleys and wetting retropeques look like overblown threats. But I think you have to decide yourself if cashier out or taking stocks to minimum levels is right for you. And I can't blame you if that's the case, because it has been an uncertain asset. The bottom line, it's your life, not mine. So get comfortable with what you can live with. But risk at least until your middle years should remain your best friend. It's different. Jim Cramer, the die part of the dollar. Hey Jimmy, love the show. My five year old grandson loves to watch you show. I have to thank you for making us money when it's there to be made. Our world is a better place for you in it. I always say my favorite part of the show is an issue question, drafted from you.

43:18In time I'm bringing in Jeff Marx, my portfolio analyst, partner in crime, helped me answer some of your most burning questions. Now look, for those of you who are part of the Investing Club, Jeff will need to do an introduction. For those of you aren't members, I hope you will, of course I want you to join. I would say that Jeff's insights in our back and forth helped me do a great job and him do a great job. All may have money viewers, but more importantly for members of the club because this is what we really do. Now if you like this, be sure to this thing. You know what I mean? Like when you go to like I went to a restaurant, you had to do it. My kids show me how to do it. All right, so first up, first up we have Tony and North Carolina who asked in a losing position what is it between being stubborn or taking the loss and then revisiting. Okay, well this is a fundamental question. In the end what a lot of people confuse is taking a loss, you take a loss if you find that the fundamentals are deteriorating. You don't take a loss because it's like you can't take it anymore. So I think that this notion of a losing position, if it's a position where things have changed,

44:24you should have taken it. We have made the mistake at times of not identifying that there are changes that accompany. But we don't like to view a company as a loser or a winner and a stock is loser winner because some of our greatest picks have been losers. Sure, there's broken stocks, there's broken companies, what you have to identify is that if the issue at hand is a structural issue, at the company, structural issue at the industry level, then that you're being stubborn if you hold on for too long. But it could present itself to be a great buying opportunity if you stick with it and the company is able to fix itself up. And we've had this many of those over time. All right, now we're taking a look at some of our of your mad mentions. So let's go to Isaac who says, Jimbo, which is what everybody calls me at home, by the way. Jimbo, my whole family loves your show. Thank you. I don't think I bought or sold anything in the past 30 years without checking to see if you said anything about the stock. Now this is what I love. See Isaac uses us as a resource, one of many resources.

45:25I have never claimed to be the seer. I have claim. And by the way, someone's not misplaced this. You're a great entertainer. Well, I like to entertain people, and I'd like to think that I'm not just a great entertainer. But what I would point out is that I want you to check. You should check. Maybe we said something. We're input. That's what we are. We are an input. Are we the input? No. But we are an important input. I believe in making stock decisions. Yeah, absolutely. It's during the homework showing you how to do the homework so you at home don't have to. Right. You still have to, but it's a guiding hand. I look, I always say that if you want, that there are people, a lot of people seem to just own it in the next ones. I disagree with that. There are always people who are going to want to own stocks. You want to own stocks for us to show. If you remember the club, you'll be much better at it. All right. Next up, we're taking questions from Rachel in Florida, who says, hi Jim, we have a 30-year plus time horizon. We had heard some money. We don't need to live on. Does Jim advise against investing 20, 25% of that money into S&P and the rest of the

46:29stocks in bonds? Okay. This is really important. 30-year plus time rise. Stocks? Yes. Bonds? No. You don't need bonds until you get very old. This is one of the points where I am definitely at odds with most of the so-called sears out there. I say that when you buy a lot of bonds, you're betting against your what? If you think you're going to pass away and when you're 72, then it's 65. Yes, by bonds. I want people to think, I know that sounds almost polyam. But the reason why I say it is because if you have to go into a long-term care facility and you own bonds for the previous 20 years, you're not having enough money. Stocks is historically at the outperforming point. Yes. 30 years long-term time rise. In the key line too, you're fortunate enough where you don't need to live off that money. That means you don't have the risk of selling it in a potential market downturn. You can stay invested in the market. That's right.

47:29You should do quite well. I know. Look, I think that when you...it's really a tricky question because people don't really like to talk about mortality. But what really does matter is that if you have a long life and you've cashed in on bonds in your 50s and 60s, you're going to be broke. You'll be broke. As long as you take that horizon, you can ride things out with stocks. And I think you'll have a full-fledged bond. Anyway, thank you, Jeff. I'd like to say there's always a more market summer. And I promise you I'll find it just for you right here on May of Monday. I'm Jim Kramer, and we'll see you next time.