So tonight were going to take a step back, try to put all this discipline stuff into perspective. If you pick your own stocks, the thing you need above Everything Else is judgment obviously good investigating judgment isnt something you can be taught in a month or a year i try to give you the tools you need to develop your own judgment all my best professors in college focused on teaching us how to be a better investor, not just tell you the stocks that ii think are Good Investments the problem is thats a heck of a lot to process when youre managing your own money, before any other consideration, you need to know yourself you simply cant know which stocks you should buy if you havent taken time to consider what your own personal obje objectives are are you just trying to get a decent return as you save for retirement do you have money to burn, and youre willing to take risks on more speculative propositions . Theres no one size fits all approach to investing and anyone who tells you different is dangerously misinformed or flat outlying to you or trying to sell you something far too often, people invest with the simple goal of making some money we all want to make money. Everybody wants to make money. How quickly do you want that return what are you willing to risk to get there . How much can you even afford to risk in the first place . These are really important questions that you need to ask yourself before you start trying to pick any given stock. Why . Because without a clearly defined goal, you have no way to determine which stocks you should be buying in other words, your 401 k , ira, brokerage accounts, do not exist in a vacuum. If youre trying to save for retirement, netflix may not be the Perfect Place to invest in for capital. But if you just want some appreciation, then netflix, and the other faang stocks, starts to look more attractive. You need to figure out what your own internal yardstick looks like thats the foundation of good investing judgment, knowing what you need so you can find stocks suitable to your particular needs. Let me put it another way. If you want to fly across the pacific ocean, you can do it in an airplane, a boeing 737. You dont try to fly across the pacific in a ford fiesta if you want to pick up your kids from school, taxiing down main street in a 737 would be impractical. In that case, you would be better off with a ford fiesta. Theres no way youre going to fit a 737 into a packed home depot parking lot. This may sound simple, but its the same way with stocks when youre saving for retirement, you want low Risk Holdings that will give you a slow and steady return for those who dont have time to Research Individual stocks, you cant really go wrong with an index fund that tries to mimic the performance of the market. I recommend index funds because theyre phenomenal they help democratize the incredible engine of Wealth Creation that is the u. S. Stock market america is a growing country, its very business friendly compared to the developed world. When you buy an index fund, youre beth on the long term performance of the u. S. Economy. Youre betting on progress historically thats been a good bet. You need to invest your first 10,000 in an index fund dont pick individual stocks until you have more money than that again, first 10,000, index fund if youre looking to make slow and steady money over a period of decades, thats your strategy in a nutshell. You want to consider companies with big dividends because of compounding. A 4 dividend yield may not sound spectacular, but even if the underlying stock goes nowhere, the 4 will double your money every 16 years thanks to the magic of compounding if youre trying to fund your retirement, that may not be the only thing you want to do with your savings this is another important point. You can have multiple objectives you want to have the mad money portfolio, the extra money you wont need after you support yourself after late stage capitalism has ground you down and youre no longer able to risk the discretionary portfolio is where you can take risks but, and a mighty big but the here, for the vast majority of people it will be less important than your retirement portfolio because its not just right there. If you want to pay for a house, you want to send your kids to college, you should take a more conservative approach to managing that money. Whatever kind of account youre putting it in, your strategy for College Tuition or future house savings should look more like your retirement portfolio than that mad money portfolio so know yourself before you jump down the rabbit hole trust me, i get it, when you get excited about a particular stock, you often want to dive right in ive been there before first you need to consider what youre trying to get out of the market the answer to that question is not going to be the same for everyone but Everything Else stems from it you cant make judgments about stocks until you know what characteristics you actually value. Lets go to paul in texas. Booyah, jim booyah, paul. Caller ive noticed companies accede to one another. If theyre going to accede one and miss one, would it be more important for them to accede on revenue or more important to accede on earnings per share holy cow, what a huge question thank you, paul, for asking. Its revenue growth. That means theres demand for the product. The actual earnings per share may be manufactured literally by tax rate, by buying stock back display you cant rejigger sales. Know thyself on mad money today, were going to help you with the flexibility im talking about. Im reveal the back bends you should be doing to get your portfolio in order and how the late great maya angelou offers some of the best investing advice ive ever heard. So stick with cramer announcer dont miss a second of mad money. Follow jimcramer on twitter have a question . Tweet cramer, madtweets send jim an email at madmoney cnbc. Com or give us a call at 1800743cnbc miss something head to madmoney. Cnbc. Com. I am totally blind. And non24 can make me show up too early. Or too late. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. Regular viewers know ive got a lot of rules, the result of more than 30 years in the Money Management business. First as a broker, then as a journalist, ive got rules for what to do in a rally or a selloff, for picking winners, for avoiding losers. It can be a lot to take in as i mentioned before, the point of all these rules is to help you learn from my mistakes and develop your own judgment. I just explained why you need to have a clear understanding of your own objectives before you start buying stocks, something more focusedthan trying to mak some money lets pretend youve done some selfreflection and you know what youre trying to accomplish now you can start buying individual stocks, enough to fill out a diversified portfolio, five to ten names, right . Hold on. Before you buy anything, you need you to do one more thing. First you have to do the hydrochloric if youre going to invest enough money in a company for it to matter to your portfolio, you need to know what the heck the company does, you need to know how much money it makes. The internet has made this process easier when i first started the show, you can go online, listen to or read transcripts of Conference Calls which i regard as the best way to get familiar with a business and the key metrics that will drive its shocks listen to some journalism, read some opinions, about the company itself and the way the stock trades ive written a half dozen books about this topic, how to do the homework the actually research is just part of doing the homework after developing a theory but why you think the stock is headed higher, you have to explain that theory to another living, breathing human being. It didnt have to be a professional, it can be your mom or a friend. You have to put it in words that you can comprehend yourself. Lay out why you can buy this thing and why its headed higher if theres a problem with your reasoning, even a mature teenager could catch that. Once youve done that, youre ready to pull the trigger. For those tuning me out because you cant stand to hear another word about homework, im done, thats it. Thats all ill say about that process of preparing to buy a stock because tonight im trying to focus on the Bigger Picture lets fast forward a little. Once youve done the homework, you can build a diversified portfolio, five to ten individual stocks. Any more than ten and you likely wont have time to keep up with them all the idea here is that you should be able to do this in your spare time not that youll turn Money Management into a second or third job. I got two research assistants. Youre doing it yourself lets assume you own shares in a bunch of companies that you genuinely believe in you now have a these fis for ea one. Theres no sector overlap, meaning you have five to Ten Companies in distinct industries that dont trade together. In short you have what in theory is an ideal portfolio. Whats the most important thing to keep in mind . You need to know that your perfect portfolio wont stay perfect for long those five to ten stocks you thought were winners, not all of them will stay winners some will be losers. Some will do nothing some of the companies you liked best will inevitably disappoint you. What can i say the game is full of heartbreak which brings me to my next rule. Always please, please try to stay flexible. You have to be flexible because business by its very nature is dynamic, not static. Things do change markets change new competitors will enter an industry and undercut existing players on price and take market share. Previously wellrun companies will start executing poorly. And weve seen that time and again. Customers cancel orders. Unforeseen events happen that hurt business or make some category of stocks seem less attractive to the big institutional Money Managers who dominate the market. When Something Like this occurs, when the story of a company that you own shares in changes, then youve got to be willing to acknowledge that things are different. If your thesis is no longer intact, if the reason you gave for buying a stock is no longer valid, then you should sell. This is why you should explain your picks to another person so you can recognize when your original idea has stopped being workable for decades socalled experts have peddled the idea that when you buy a stock, you need to be prepared to hold on to it until the death of the universe. How many times have you heard someone say buy and hold thats nonsense. Dont get me wrong, i would love to buy a stock and hold it from here to eternity because the story pans out and the darn thing keeps going higher but if the story doesnt pan out, there are big changes in the industry, you have to be willing to sell. At least sell some i just wish a lot of the graybeards would adopt buy and homework i bring this up because people hate, hate, hate admitting they made a mistake once we make up our minds that things are great for, say, cocacola, we dont want facts to get in the way of a good story. When you buy shares in a publicly traded company, youre not joining that stock in holy matrimony. You dont swear to stick with it in sickness and health, for richer or poorer you dont need to go to a judge to get a divorce just a piece of paper. Acknowledge that something has changed. If you buy a stock because you believe the Underlying Company is going to take a ton of market share and it fails to do so, dont move the goalposts on yourself just get out of there. You must be willing to recognize that companies can take a turn for the worse. Managements make mistakes. Ceos make bad strategic and tactical mistakes every day. Bed, bath, and beyond, they bought their own stock back from 2013 to 2017 it was an attempt to boost the earnings per share by taking stock price up it didnt really work. The company kept losing market share to Companies Like amazon and the buyback accomplished nothing. By 2019, if it had put the money they spent on a buyback in a mattress, they would be worth twice as much. The guys running bedbath and beyond werent flexible. Dont make the same error. When something goes wrong with the company you own, youre ready to stop hoping and start selling. Listen, as bad as it might be, recognizing a turn for the worse leads to larger losses than youve already accrued before you buy a stock, do some homework and come up with a thesis, a reason you think the stock is headed higher once you own it, please stay flexible if your thesis doesnt play out the way you expect it to, sell the darn stock dont keep bashing your head against the wall recognize things dont always go your way, then move on liam in massachusetts. Caller booyah, jim booyah, liam. Caller i just had a quick question about index funds you say with certain stocks, buy them at certain times, like monthly or quarterly or at a good price does that apply to index funds because you say to purchase 10,000 worth and yes, but what im trying to do is make it so you dont necessarily come in all at once. A lot of people put money to work i try to space things out, when you get a real downturn, if you put all your money in before, you cant take advantage of it thats why i like to be flexible mike in texas. Caller hi, jim, things for taking my call of course caller jim, i would like to own some individual names in the tech space okay. Caller im finding the prices of these stocks are just too expensive. So ive started looking at some etfs and mutual funds as an affordable way to dwayne some exposure to these names. I would really like to hear your thoughts on the matter one of the things i dont like about the mutual fund industry, they dont say what they really own. When it comes to an etf youre homogenizing the same deal you either have to decide the market is too rich or that group is too rich and therefore not to buy, or of course you just say, you know what, ill take a long term view and im not going to game it and maybe dont buy all at once but space out your buys. Matthew in arizona caller hey, jim, hows it going . Im doing well, how are you caller doing well, couldnt be better. Is it a good idea to invest in the government if so, should it be a short Term Investment or a long Term Investment look, cash is short Term Investments. Longer term, you may want to be able to take advantage of higher ratings, use the power of compounding. The conservative investor who is older should be thinking about a treasury a younger person, you can take the risk, youve got your whole life to make up for it much more mad money. Theres not crying in investing. Its time to take emotions out of it when it comes to picking stocks then, how the acclaimed poet maya angelou gave me some of the best Investment Advice ive ever heard. So stick with cramer 300 miles an hour, thats where i feel normal. Having an annuity tells me my retirement is protected. Learn more at retire your risk dot org. Your but as you get older,hing. It naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. Healthier brain. Better life. Tonight were zooming out and talking about the big picture, the stuff you absolutely have to do if you want to manage your money in the stock market let me just say if you dont feel like reflect ongoing what you need from the stock market, if you dont want to do the homework, if you dont want to watch the Underlying Companies and give up on their stocks when something goes wrong, nobodys forcing you to do that there is no gun to your head its why vanguard invented index funds. You have plenty of investment options. If youre going to play the stock market, i use the word play pretty loosely, if youre going to invest, you should take the effort to do it right. Stocks are the greatest engine of Wealth Creation in history. You can harness that engine and make it work for you if you know what youre doing. Theres another ultraimportant component here call it the emotional side of the equation you need the right attitude toward the market because without the right attitude, stocks will break you. This is a brutal game and you need to make sure you have the right head space to make sure you play it. For many of you, managing your emotions will be harder than picking winners, harder than knowing when to cut your losses. Why . Because the market is a harsh mistress at times owning stocks can feel like being in an abusive relationship we just keep coming back because long term, its a great way to try to make money. The thing is, unless you can perfectly predict the future, youll make lots of mistakes, its an inevitable when mistakes lose you money, that can be tough to handle. You need the patience, the patience of the dalai lama, to not get upset when you buy a stock and it falls off a cliff imagine what it was like for me at my old hedge fund, before i mellowed out i was the opposite of the dolly llama. When i got something wrong, i would flip out you did not want to be around me on a down day, especially if i was way too long so i can tell you from experience that this is not a product i haive attitude i know better than anybody that you need to try to remain calm because constantly getting mad at yourself just is not sustainable. Youll beat yourself up, its crazy. Youll end up running out of patience and giving up on the whole asset class. Im not telling you to be the dalai lama you dont need to be a buddhist among to be a good investor. Its okay to get mad or sad when the market punishes you with its behavior the stock my travel trust owns, if it gets really hit, i feel awful, i do, i cant get it out of my system but i have to. You cant afford to punish yourself the market is brutal enough on its own. In other words, get your head on straight your head matters in this game you need to have it on right every day if youre going to spot opportunities and act on them so many of us approach the market with an inferior attitude, an inferior state of mind our heads are clouded by negative thoughts that genuinely throw us off target, making us do the wrong thing you will be in the wrong frame of mind to spot the next opportunity. Let me be your stock market therapyist there are a lot of harmful recurring thoughts that will mess with your judgment. The worst of the worst is when you think to yourself, if only, if only, as in, if only i had pulled the trigger on nvidia, you could have made a fortune. Dont get hung up on it. Dont get hung up off could have, would have, should have. Its destructive to the positive psychology you need when making Investment Decisions for a long time i would be mesmerized by big misses, things i got wrong. I would go over the big miss over and over again. It wouldnt just be over i can put it out of my head now in a couple of hours im talking about days on end. It took me a long time to learn. But eventually i was able to see just how destructive playing the would have, could have, should have game could be if youre an emotional guy like me, you may need to trick yourself into a more productive pattern of thought ive had to build in all sorts of methods of tricking my mind, chiefly by going in and taking it right off you look at it every day, you scroll down, you see it, it brings up that bad thought get rid of it, clear it out. If you like it so much after you sold it, go buy it back, for heavens sake, but dont tell me what you could have done or should have done you didnt whether you walked into a big loss or missed out on a big gain, its irrelevant. Stop beating yourself up, for heavens sake. Bottom line, the stock market can be punishing enough. You dont need to make things harder by punishing yourself dont play the if only game. If you need help curbing this kind of destructive thinking, go to that extreme. Take the stocks off your monitor or your portfolio watch, off your cellphone youll be surprised how much better your decisionmaking becomes when you stop the would have, could have, should haves devon in florida caller jim, how is it going . Good, how are you, devon . Caller good, good. Im 25 years old, maxing out a roth ira i know youve always suggested low cost index funds my question is, should i be 100 in an s p 500 fund or using multiple funds to build a diversified portfolio . I think that you should put the preponderance in an s p 500 fund, thats terrific, low cost. After that, pick one or two. I dont want you to be in mutual funds, that makes it even harder basic bedrock s p and a couple of others. Maybe you like health care, maybe you like tech. That would be my choice. Michael in california. Caller jim, thank you for taking my call i had a question about 401 k plans. My Company Just Put out their 401 k plan. Being a novice when it comes to those kind of things, i wanted to know what percentage of my paycheck would be a good starting amount to contribute. Whatever the maximum youre allowed. Because what happens is, if you use the power of time, the power of compounding, you will have so much more. But you have to put it all in. And i always advise people, take the max, take the max. Enough with the would have, should have, could have, people. Dont play the if only game. Youll be surprised how much better your decisionmaking becomes once you stop that to quote the great cinsinne cyn, i see your true colors shining through. Then, find the bull market no matter where it might be hiding. And ill answer your questions on twitter stay with cramer let me give you a piece of advice that would have saved me a lot of cash and even more heartache back when i was running money professionally, but i didnt know it this was genuine sage investing wisdom from the late, great maya angelou. When someone shows you who they are, believe them the first time i know she wasnt actually talking about publicly traded companies, but if the shoe fits, wear it. All night ive been trying to hammer home important bedrock principles of investing. When a Company Shows you who they are, believe them the first time when a ceo tells you business is bad, take their word for it. Dont try to find justification to keep owning a stock of a company thats not delivering. Get the heck out until the smoke clears and you can better assess the damage the better i do for my charitable trust, its because of this rule the worse i do, you know what im talking about. The rest of the maya angelou quote, she continues, people know themselves much better than you do thats why its important to stop expecting them to be something other than who they are. All right. Same thing holds true in the corporate world. A companys executives are almost always going to know their business better than you will unless theyre being ridiculously negligent they have access to information you dont. They can spend 80 hours a week running their company. You have your own job, and even if you manage money fulltime, there literally arent enough hours in the day to devote half that time to a single stock. Thats why its important to listen to what ceos have to say, whether on the quarterly Conference Call or when they come visiting on my show or someone elses show. High level executives are your best resource. I wouldnt have them on if i didnt think that. Dont get me wrong, you cant take everything that comes out of a ceos mouth as gospel plenty of executives talk like theyve had rose colored glasses welded directly on their face. What im really looking for are people who arent wearing these, okay these are actual rose colored glasses. Anyway, i try to ask questions whenever my cockeyed optimism is blinding me. Sometimes you need to take what they saywith a grain of salt i not a full carton of mortons iodized. I dont want to be too cynical here again, when we have someone on the show with a track record of being extremely candid or reliable or both, i try to point that out it matters when they say its going incredibly well, it might be a reason to buy. This can be a profitable strategy when you get it right when marc benioff from salesforce. Com came on the show during the depth of the Great Recession and told us his Cloudbased Software company would be just fine, you had to grit your teeth and buy it you had to get in it when he said things were fine. It was bankable. When the former ceo of Dominos Pizza told us how he would turn things around in 2010, the stock was trading at 18 bucks. These guys deserve the benefit of the doubt if you didnt trust them, you missed out on some monster moves. Look, i dont want to be too proud here, but i said, hey, listen, i believe this guy thats what helps. It helps to have me say it, because ive thought about this a lot. Ive talked to ceos, pretty much everyone in the world. If management tells you something is wrong, you should take them extra special seriously. Especially when a company preannounces a shortfall, you need to wait 30 days at least before buying that stock in practice, i found other than some rare exceptions, when business is so ugly a company is forced to come out early and cut numbers, it typically means theres more bad news ahead or they wouldnt say anything why . It all comes back to maya angelou. When someone shows you who they are, believe them the first time when management preannounces a bad quarter, theyre not just looking at the past. Theyre looking at the order book of the future believe me, if there were any hope that business would get better, the company wouldnt have to cut numbers between its regularly scheduled quarterly reports. If they thought maybe something could get better or worse in 30 days, they would keep their darn mouth shut and wait. Preannouncing signals ongoing weakness will continue this will really keep you out of trouble, because i can count on one hand the number of times when things got better within a month. Youll miss some great opportunities, maybe theres a half dozen, and sometimes the stock bottoms early. Most of the time, after 30 days, there will be another brutal leg down ive done a lot of homework and found it takes at least a month for bad news to get fully baked into the stock price if not longer bottom line, sometimes it can seem we live in a post truth world where its impossible to know who to believe on any particular issue even the most of the skeptical among you should believe executives when they preannounce an earnings shortfall. Believe me, these people dont like slashing their own numbers. They do not it because they dont see much hope of things improving by the timetheir company gets to its next quarter. In the wake of a shortfall, you have to presume the stock wont be bouncing back anytime soon. For the next 30 days you should treat the darn thing as a falling knife. Even if youre not a huge fan of Maya Angelous poetry, you should trust her Investment Advice stick with cramer. Whether your beauty routine is 3 steps. Or 57, make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. Quadrupled their money by 2012 . And even now many experts predict the next gold rush is just beginning. So dont wait another day. Physical coins are easy to buy and sell and one of the best ways to protect your life savings from the next financial meltdown. [narrator] today, the u. S. Money reserve announces the Immediate Release of u. S. Governmentissued solid gold coins for the incredible price on your screen. 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Gold is now on sale at prices unseen in years and this year could be one of the greatest goldbuying opportunities of all time call now while vault inventory remains. As one of the largest u. S. Gold coin distributors in the country, the u. S. Money reserve has proudly served hundreds of thousands of clients worldwide. Dont wait another minute, call now to purchase your American Eagle coins at cost for the amazing price on your screen. I spent a lot of time tonight talking about the many ways in which you can make mistakes and the need to guard against them by knowing when to admit that youre wrong. Let me be clear, the market can be just as wrong as any individual investor. The market makes mistakes every single day this is my next big picture lesson for you dont assume the action necessarily makes sense. A lot of times stocks go up or down for the wrong reason or no reason or an outright stupid reason when the Company Reports earnings and the stock goes down, there is a natural impulse to believe that the company must have disappointed. Often that will be true. But its not always true sometimes there are other forces at work. Stocks will go down in the initial earnings release, then bounce back when management explains things on the Conference Call or viceversa, which is why im always telling you not to jump to conclusions until after youve listened to the call, which is a huge drag but must be done, especially when were in the middle of earnings season. The market makes a ton of mistakes its not just about errors in judgment the truth is that stock prices do not always reflect the underlying fundamentals. The fundamentals are the big part of it i spend so much time focusing on them and how to understand them, but theyre not the whole picture. You have to understand, a stock market is first and foremost a market of stocks like any other market, its prone to all sorts of sdorg distortions. Its bad reflectioxes and some of disorder. Stock markets dont reflect reality all the time theyre as much a product of perception on wall street as they are the actual fundamentals this is why its important for you to beat the averages by investing in individual stocks if the market worked perfectly you would never be able to exploit opportunities because the whole point of the game is to spot stocks that are mispriced. Why do i bring this up because when the action is irrational, it can be very frustrating. I want you to be able to take advantage of moments when stock prices are simply wrong. At the very at least i dont want you throwing up your hands in disgust and giving up on the whole enterprise because nothing makes sense. That would be bad. Remember when i always say about stocks, greatest wealth engine ever created let me go overdistortion for most of my investing career, your average company was in control about half of its own destiny. This was a good situation for stock pickers as long as you made sure to avoid sectors that were out of favor with the wall street fashion show. You can generally do pretty well researching companies and trying to predict which would do better than their competitors the rise of etfs, the majority of them are made up of faang although theres a resurgence of the power of stocks, they can get driven down by the etf riptide. When netflix catches a cold, the other three stocks sneeze. Even in the business of netflix has little to do with the business of facebook a lot of times youll get situations where sellers throw the baby out with the bath water. If the Worst Company in an industry reports bad numbers, the whole group tends to go down even if everyone else is doing well and those are your opportunities. Sometimes the market is obtuse youll see Companies Report good quarter after good quarter to no real effect and then money manages figure ou managers figure out you just need to be patient. The caveat, sometimes when the market makes a mistake, its not worth trying to fight it, because while markets are often irrational, they can remain irrational for longer than you can remain solvent to borrow a phrase from John Maynard Keynes who was a very good money manager your goal here is not necessarily to be right. Its to make money sometimes that means being a little cynical about other peoples expectations. But heres the bottom line dont just assume that stocks that go down deserve it. In the immortal words of clint eastwood, markets got nothing to do with it see when they get something wrong and try to take advantage of it. Stick with cramer. California phones offers free specialized phones. Like cordless phones, phone ringing big button, and volumeenhanced phones. Get details on this state program. Call or visit. Owning and running the biggesta Small Business is finding the right people. In hiring our first recruiter, we decided to post a job on linkedin. They had to have worked. At a recruiter firm and be bilingual. When we saw ana marias profile. She had a ton of experience in hr. The interview went really well. And she seemed like someone who could really sell mckenzie to perspective employees. We found the best person to find the best person for us. Post a job today at linkedin. Com grow and accessoriesphones for your mobile phone. Like this device to increase volume on your cell phone. phone ringing get details on this state program call or visit i love hearing from the smartest audience in television. Thats you, cramerica. First, jim, why when a caller named richard calls in do you and the staff say his name in a high pitch thats a reference to the movie tommy boy. Lets say a caller is named richard, we say richard thank you now a tweet, he says, hi, jim cramer, any advice for new parents investing in something for the newborn child . The gift to minors is the way to do it. Buy Growth Stocks. Theyve got their whole lieves ahead to make the money back buy high quality Growth Stocks i work with male teens and they think you sound like master yoda im learning and so are they, thank you, jim cramer. Okay, yeah all right. Thats yep, thats precisely why my wife loves me so much okay here is a tweet, jim, other than banks, who benefits from raising Interest Rates you know what, not really many other companies. I think that as a corollary, when rates go up people think the economy is really strong and therefore people buy the industrials. The banks are the ones that benefit directly because theyre able to charge you more when you go for a loan, they make more money for deposits and lend them when rates are higher. Jim, i absolutely loved get rich carefully. Will you be writing another book anytime soon the economics of Book Publishing has changed rather radically ill work my butt off on Something Like this and work most of the nights and almost every weekend, then ill read the book, and it used to be a very lucrative business to write books. Now its a labor of love and i have other labors of love i want to perform, including my garden. This tweet says, i may not always watch, but when i do, i take notes so i can do my Research Later i have to tell you, whenever im out with people, and i will say this, because my late dad would always say this, typically people who are, lets say, elderly, who play the stock market, they always come out with these long lists of what they took down and i absolutely love it. Theyll go over whether they like this, whether they like that it happens all the time to me and i think its terrific. I think younger people dont know how to write down on a piece of paper anymore thats the difference. Theyre immediately putting it into their cellphone they have no list because they have no pencil and they have no paper. Heres a tweet, love the show, jim, can you explain annuity investments . Im 43 with a decent retirement nest egg i would say pick individual stocks pick etfs. Term Life Insurance is a fantastic buy. I think youre doing things very right. I like you to be in control of your destiny no fees whatsoever when you buy individual stocks other than the commissions. Here is a tweet, he asks, what is really going on with inexpensive stocks with high yields for example, a 7 stock with 11 yield. Thank you, love the show whats going on there is a classic red flag, meaning that people have gotten way too complacent when a dividend is that high, distribution is that high, it is often unsustainable. Be careful in that situation here is a tweet, do you suggest some reading for a young first time investor . I want you to go to amazon and hit up the name peter lynch, okay and look at one up on wall street, thats the book i cut my teeth on, its the book that you can cut your teeth on. All right. Well, thats all our tweets. So stick with cramer theres always a bull market somewhere. I promise to find it just for you right here on mad money. Im jim. See you next time. Welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. If they hear a great idea, theyll invest their own money or fight each other for a deal. This is shark tank. Who has been unable to get a loan anywhere else. He has come to the shark tank for his last chance to get the money he needs to grow his business. Im tod wilson from somerset, new jersey. Im the owner of mr. Tods pie factory. Can i have a personal sweet potato pie . Okay, would you like anything else . Theres a big demand for our pies, especially the little sweet potato pie. The people are lined up today. Its freezing outside,