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Money Face-Off: Jim Cramer vs. Suze Orman

This post is part of our Money Face-Offs feature. Let us know who you think comes out ahead in this head-to-head match-up, and check out our other Money Face-Off posts.

Worlds apart, Cramer and Orman speak to totally different classes of investors. Jim Cramer is the fast-talking showman talking primarily about stocks and Suze Orman is a slow-talking educator preferring funds. While Cramer likes to jump around playing with bells and whistles, Orman is making sure she speaks clearly and enunciates to her audience so they can understand and follow along.

The biggest difference between the two gurus is that Orman is interested in what you do with 90% of your assets and Cramer is only interested in the 10% Mad Money. Orman talks about getting people started on actually thinking about their personal finances and financial well-being. Cramer is interested in the sport of investing. He gets a rush from the whole subject. Orman is in no rush and much more sedate. Clearly Orman offers far more sound advice in the form of broad investing principles you can live by year in and year out with a minimal amount of work. That said, watching her is like going to your history and geography class. Valuable information, but not the highest form of entertainment. Cramer is a stock trader, and that fact by itself has proven to be harmful to most investors, even professionals. But his investment broadcasts are more like visiting the sports book in Las Vegas with 100 games in play at the same time.

Cramer and Orman are both entrepreneurs who have written books, lectured, done radio and television, and made money from a variety of different revenue streams. Jim Cramer, self-professed hedge fund manager extraordinaire, retired from that enterprise to focus on his internet start-up TheStreet.com, which is a mix of online business journal and constant Cramer promotional.

I have not heard either guru discuss the benefits or goal of generating multiple revenue streams. Orman sticks to investing basics for the beginner while Cramer loves to talk stocks. If you are just starting out, watch Suze O. If you want to be entertained, and I caution, be very careful about following his investment style, watch James C. There is plenty to learn from Cramer about what to do and what not to do; the only problem is you need some kind of filter when you watch and the only ones I can think of involve heavy doses lot of patience, experience, and maturity.

The advice offered by Suze Orman can help you build a solid financial foundation for your future. She talks about simple things like reducing credit card debt, having a savings plan, index investing, building up equity, and other basics. Consider it steps 1 through 9. Cramer rants to a more sophisticated audience, suggesting some icing on your portfolio cake and the outside chance of greater rewards in step 10, but is not essential. He talks about owning as few as five stocks in a diversified portfolio, what stocks are hot today and what are not, and why he thinks so. Cramer always says you should do your homework. I agree, and if you do you will conclude Orman is a safer bet.

Read Chasing Value or Serious Money to find potential opportunities, and to verify my track record, as well.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He is on the advisory board of Internet start-up CircleBuilder.com.

Vote in our poll for Suze Orman or Jim Cramer, and let us know in the comments why your choice has the financial edge in this match-up. Also be sure to check out our other Money Face-Offs.

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Last updated: December 05, 2008: 03:03 AM

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