**SPEAKER_1** (0:00)
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**SPEAKER_2** (0:28)
The board recommends approving.
**SPEAKER_3** (0:30)
Regarding that seat on the committee, we're promoting.
**SPEAKER_4** (0:31)
To boost quarterly earnings.
**SPEAKER_5** (0:33)
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**SPEAKER_6** (1:00)
My mission is simple, to make you money.
I'm here to level the playing field for all investors. There's always a bull market somewhere, and I promise to help you find it. Mad Money starts now.
**Jim Cramer** (1:16)
Hey, I'm Cramer. Welcome to Mad Money. Welcome to Cramerica. If you want to make friends, I'm just trying to make you a little money. Now, my job is not just to entertain, but to teach you. And that's what we're doing tonight. You can call me at 1-800-743-CNBC or tweet me at Jim Cramer. Yes, tonight I'm letting you in on something big. The method to my madness.
I believe that you can do everything I do at home if you're willing to put in the time and effort. Investing, specifically investing in individual stocks, running your own portfolio rather than dumping your money in some buy and forget index fund is something I am confident all of you can do by yourselves. I always emphasize the homework, and I hope you do the homework for my charitable trust stocks if you join the CBC Investing Club. In the old days, my rule was that you need one hour per week per stock. These days, though, the research is so readily available online that I'm willing to count this less than an hour a week for a portfolio of five stocks. Say a few hours if you own 10 stocks, unless you belong to the club itself and you have a much easier time and you can cut down how much homework you have to do because we do it with you. Investing in more than just 10 stocks, ah, then I get worried because that can be difficult unless you're managing money full time.
Of course, if you don't have the time or the inclination to pick stocks, then you are better off parking your money in a low-cost index fund that mirrors the SB 500 And I like those. They're good. I'm in some. But if you're willing to put in the work, regular people can trounce the averages as long as you're disciplined and you follow the rules. Rules we constantly highlight as part of the CNBC Investing Club. How do you start?
Well, that's what we're talking about tonight. Like I said, the show is all about the method or methods to break the rules, and I'm strictly quoting the bar to my madness.
How do I pick stocks? What gets on the show? How do I tell you some stocks are worth buying and dip, and some aren't? Those are the questions that people constantly ask me. Tonight, you're going to get a piece of the answers. The truth is that I've got far too many methods, far too many ways of picking out great stocks to ever cover all in one show. But I want to give you some of the tools of my trade, enough so that you can start to pick stocks like me on your own. Remember, I want you to be a manager, a great manager of your own money.
Because you can focus on a smaller number of names, while I have to follow practically everything, picking for the lightning round. At the end of the day, this show is about educating you, giving you the ultimate insider's perspective on how the market works and how it can help you try to make money. I'm not here just to dole out stock picks like the proverbial fish you give a man if you're too aged to teach him to shop for fish at Whole Foods. What I really like to do is empower you. And that starts with me teaching you all the many tricks I use to pick out great stocks and invest in them like a pro. Methods that have served me well for more than four decades and that allow me to generate a 24% annual return after fees for 14 years of my old hedge fund. Not bad, three times better than the market. These skills are what refresh this show and guide me as I manage my own travel trust now. I'll learn the exercise that you can follow, of course, by joining the club. Now let's get rolling. One of the easiest ways to identify potential Cramer names, the stocks that could possibly, I should possibly own, but not necessarily end up on the show, is by watching a list that comes out every day. It's called the New High List. Stocks in that illustrious list, the highest of the high, obviously has something going for them, and that's especially true when the market's in bad shape, as only the best of the best can hit new highs when the averages are falling apart. So what does it tell you when a stock's on the New High List? Either that it's part of a broader bull market because its sector's on fire, or the company itself has some serious earnings or sales momentum.
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