Warren Buffett or James Cramer, who do we have more faith in? Is that a serious question? Probably not. I have been told that Cramer's TV show has 17 million viewers. I wonder how many people would tune in to hear what Warren Buffett has to say. Indeed, Mr. Buffett might make for very boring television. We have even noticed here at BloggingStocks that when Cramer's name appears in the headline, the stories seem to be more popular. And while Buffett's name certainly attracts attention, it does not seem he is as popular.
Comparing the two noteworthy investment gurus reminds me of the saying: Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime. Cramer throws out dozens of picks and pans every week. Tracking all his commentary has turned into a web sporting event of sorts. When he changes his mind, I can only guess that those hanging on his every word get dizzy. I suppose that with Cramer, followers might get to eat on some days and on some they don't. I do know he has made some good calls. He has also made some unfortunate ones.
I cannot recall Buffett ever making a stock pick known in advance of his investments. He does, however, give a lot of good advice that can be gleaned from his letters to shareholders in the annual reports of Berkshire Hathaway Inc. (NYSE:BRK.B, NYSE:BRK.A) and at the shareholder meetings. He has also been interviewed numerous times and has often been quoted. There are numerous books about him and they too try and enlighten the reader as to his investing style. Clearly those following Buffett are interested in learning 'how to fish.'
Cramer is worth many millions of dollars and Buffett is worth many billions of dollars. It would seem clear that Buffett should have the larger following. However, learning to invest like Buffett takes not just an investment of money but also an investment of time. The frequent trading supported by Cramer's antic market maneuvering is in direct contrast to Buffett's buy and hold investment strategy; a strategy I have found to require much more patience and affords fewer opportunities. It has worked for me. I encourage everyone to learn to fish for themselves.
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Reader Comments (Page 1 of 1)
1-30-2007 @ 4:02PM
klujie girl said...
Cramer is an absolute IDIOT in the markets. Its the new day dorfman report on cnbc.