Jim Cramer, the author of the book entitled Get Rich Carefully, is a renowned television personality, and he is at the epicenter of the investment success. Jim possesses a breadth of knowledge about stock and bonds. Moreover, he is a reservoir of the financial information. Contrary to his previous books, Jim’s Get Rich Carefully focuses more on the roadmap and a checklist for an intelligent and disciplined stock investment process. Through his previous professional experience and as a manager of thriving hedge fund, he has engaged in heavy lifting and his professional and life experiences in the financial industry provides the driving force behind the book’s ten chapters. Get Rich Carefully provides practical, financial and investment insights and advice that all financial investors, both individuals and corporate bodies ought to adopt. It is also a guideline for improving one’s portfolio returns on their investments.
Jim Cramer’s main contention in the first chapter of the book is what moves stock. He discusses the influence of stock on the day to day failures and success of individual firms. He ascertains that stock gyrations do not contribute any significant influence in the day to day success or failure of the companies that they target. In addition, the author explains the role of the international influence on an individual thinking of stock. According to Jim, “ international influences must be grafted onto your thinking about stock almost on a daily basis because of the electronic linkage of all the equity markets (pg. 254.” As such, this is the central idea of chapter one of the book. Therefore, an understanding of the forces that move stock is a significant focus of the first chapter.
In addition, Jim’s main argument is the global performance of an individual company. He reveals that the company’s performance in the world market is an essential factor in the determination of the stock valuation and the investment prospects of the company. It is apparent that the macroeconomic growth, the sector’s growth, and the micro achievements of the company, including the sales returns of the firms, then one will pick the best stock in the listing to earn higher returns and grow their wealth. Jim’s argument is vital to individual investors who are undecided on which company’s stock to invest their capital in the stock listing. Furthermore, this contention is relevant to companies that target high portfolio returns from listing their stock on the stock exchange.
Moreover, the book, Get Rich Carefully focuses on the ability of an individual or a corporate company to maximize its profit from the investment made in stock. As such, Jim identifies fundamental themes that promise high returns that can never fail an investor no matter the economic situation. It explains the investment opportunities available to an investor in stock. The book persuades the readers that their investment in stock will always attract returns; therefore, Jim’s objective is to kick out fear and uncertainties that revolve around investing in stock and in turn provide a sure plan for investors’ ability to get rich with stock. Clearly, then, Get Rich Carefully gives insight on what investors should care about and the dynamic opportunities to get rich that exists in investing in stock and the need to assume the noise that exists in the selection of a superior stock(Cramer 59). Finally, Jim Cramer gives an indispensable guide for analyzing stock.
Jim Cramer’s unique anecdotes and vast experience are the primary source utilized in the authoring of this book. The financial experiences in the stock exchange are fundamental guidelines in the book. For instance, a vital tip he gave to a bartender in Summit, New Jersey, about the significance of buying the best breed after he learned his lesson the hard way about the demerits of going for cheap breeds at the expense quality. Besides that, Jim’s story about a bag his dad made for him (Moan bag), where he carried his lunch as a kid daily provides critical investment insights(Cramer 322). Additionally, the lesson he learned about how retailers can to survive by the skin of their teeth and surprisingly die overnight also provide essential idea to the writing of Get Rich Carefully. It is evident that Jim Cramer uses his personal life lessons and stories as a source of information for the writing of the book. These sources are organized perfectly throughout the chapter of the book; furthermore, the author organizes his sources in chapter each containing unique ideas.
However, the author derives largely support for his recommendations in the book from anecdotes rich in metaphor instead of an extensive qualitative analysis from original sources or cited sources. On the contrary, it would be difficult to formulate a rigorous quantitative test. In addition, in his book, Jim Cramer fails to quantify reasonable expectations for the risks or the returns of a well-maintained portfolio stock investment. According to Jim he is “ confident that one can beat the averages (pg. 1).” This is ambiguous and does not provide absolute margin of returns. Similarly, the book explicitly addresses only investment in stock and assumes other classes of assets one can invest in.
Get Rich Carefully promises that one can get rich quickly but not overnight as others perceive. Consequently, he reveals that others are lead to quick decisions that result in loss of wealth and poverty. The book changes the perception of getting rich as a natural thing that can the achieved overnight and indicates that getting rich is a step by step process that needs the right decisions and patience. Jim Cramer describes getting rich as a preserve of those individuals who are befuddled and unaware of the opportunities in stock investment. Therefore, the book changes the perception of many by showing that stock investment is a viable investment that promises high returns.
In conclusion, it is apparent from Get Rich Carefully by Jim Cramer that stock investment is an opportunity for individuals and corporate bodies to earn a high return and get rich. However, it shuns the promise of getting rich overnight and provide for careful step by step process of getting rich over time. The main factor discussed in getting rich carefully using stock.
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Cramer, Jim. Jim Cramer’s Get Rich Carefully. , 2013. Print.