Mad Money: Key points from June 27, 2023 (Tuesday) Episode =Cramer’s Rule of Engagement=

This page contains summary of CNBC program “Mad Money w/ Jim Cramer” which was on air on Tuesday, June 27, 2023.  It also contains links to CNBC sites which contain video clips and transcripts.

(1) Jim Cramer’s guide to investing: Quality is key and patience is a virtue (https://www.cnbc.com/2023/06/27/jim-cramers-guide-to-investing-quality-is-key.html)

• On Tuesday, Cramer told investors that patience is a virtue and giving up on value is a sin.
• “Don’t be afraid to pay up for best-of-breed stocks,” Cramer said.

(2) [No Video Clip for non-Club Members] ‘You simply must know what bonds are doing at all times’, says Jim Cramer (https://www.cnbc.com/video/2023/06/27/you-simply-must-know-what-bonds-are-doing-at-all-times-says-jim-cramer.html)

‘Mad Money’ host Jim Cramer talks his ‘Rules of Engagement’ when investing, including keeping an eye on the bond market.

“Cramer’s rule of engagement: Keep your eye on bonds.”

“Cramer’s rule of engagement: Watch out for unexplained resignations by key executives.” < — When you see a CEO step down for no real reason, you should assume something’s wrong

“Bottom Line: Keep an eye of the bond market & remember, unexplained exec’s resignations equals sell.”

(3) [No Video Clip for non-Club Members] Market corrections are like rain, they are inevitable, says Jim Cramer (https://www.cnbc.com/video/2023/06/27/market-corrections-are-like-rain-they-are-inevitable-says-jim-cramer.html)

‘Mad Money’ host Jim Cramer talks his ‘Rules of Engagement’ when investing, including being prepared for the worst.

“Cramer’s rule of engagement: Expect corrections.”

“Cramer’s rule of engagement: Hope is not a strategy.” –> “Hope is not a part of the equitation, WHen hope is part of the equation, you wind up holding low-quality stocks.”

“Bottom Line: It pays to be realistic in this business … prepare yourself for corrections and don’t pick stocks on hope.”

(4) [No Video Clip for non-Club Members] You have to be able to explain your stock picks, says Jim Cramer (https://www.cnbc.com/video/2023/06/27/you-have-to-be-able-to-explain-your-stock-picks-says-jim-cramer.html)

‘Mad Money’ host Jim Cramer talks his ‘Rules of Engagement’ when investing, including doing your homework on stock picks.

“Cramer’s homework checklist:

• Know how the company makes money
• Be able to articulate a thesis for owning a stock
• Understand how the stock price could increase or decrease
• Start off as a skeptic of any stock
• Don’t buy into the hype machine”

“Bottom Line: Always be able to explain your stock picks, & don’t take anything on faith.”

(5) [No Video Clip for non-Club Members] ‘The difference between a good investor and bad investor is how you handle losses’, says Jim Cramer (https://www.cnbc.com/video/2023/06/27/the-difference-between-a-good-investor-and-bad-investor-is-how-you-handle-losses-says-jim-cramer.html)

‘Mad Money’ host Jim Cramer talks his ‘Rules of Engagement’ when investing.

“Cramer’s rule of engagement: Never subsidize losers with winner.” –> “If you keep selling winners, you get a vicious spiral as that bad stocks stay bad.”

“Cramer’s Market rule: Never speculate on takeovers of companies with bad fundamentals.”

“Bottom Line: never sell your winners to subsidize you losers .. and don’t’ speculate on takeovers in companies with deteriorating fundamentals.”

(6) [No Video Clip for non-Club Members] Jim Cramer and Jeff Marks answer viewers’ questions on investing (https://www.cnbc.com/video/2023/06/27/jim-cramer-and-jeff-marks-answer-viewers-questions-on-investing.html)

‘Mad Money’ host Jim Cramer and CNBC’s Jeff Marks answers viewers’ questions.

• When you advise people to take out their cost basis and “play with the house’s money and let it run”, at what point do you suggest people take profits? –> Nobody ever got broke taking a profit. In charitable trust we are taking profits every 20% or so [for LLY].
• Jim has been talking about “battling” the stocks that are down, What exactly does that mean? Trading a particular stock for a while? Doubling down on a stock that is down from its cost basis? Finding a good exit point to sell the stock?  –> The stock is down that we like, We want to scale out and let it grow rapidly, and back and forth. Also, trying to understand if it is a broken stock or broken company.
• Can you recommend a few stocks specifically when investing for young children? Many of us invest for our children or grandchildren so that would be helpful –> drug stock, new kind of tech, company with product that children would use, etc.

Other Advices Discussed (calls with audience): 

• How to invest who have extra cash luing around, how should they invest it?  [SP 500 for fist 10,000. Only after that invest to individual stocks.]
• Is there a situation where its ok not to be diversified? [No.]
• What sectors are best for long term growth in a 401k? [Standard, good balance sheet, good growth stocks]

Ref: Links to other sites that relate to episode of June 27, 2023

• Google Podcast (Sound）
• Internet Archive（Video & Texts per minute）

Disclaimer

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