David Swensen has led Yale's endowment to phenomenal results since taking charge in 1988. According to the New York Times, his advice for individual investors is simple: "use index funds, exchange-traded funds and other low-cost instruments, and stick to your long-term asset allocation -- even when the markets are in tumult."
What's interesting about the Times interview is that Mr. Swensen decided to use it as an opportunity to take some shots at Mad Money host Jim Cramer: "There is nothing that Cramer says that can help people make intelligent decisions. He takes something that is very serious and turns it into a game. If you want to have fun, go to Disney World."
Mr. Swensen sure did manage to come across as an aristocratic snob. But I'm actually inclined to agree with him to a certain extent: I would never follow Cramer's stock picks. I think he gives way, way too many tips. But I do watch Mad Money regularly because Jim Cramer is a really smart guy and has been down in the trenches of money management. Some of his broader ideas are useful, and let's face it: his is one of the few really entertaining shows on CNBC.
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Reader Comments (Page 1 of 1)
2-17-2008 @ 6:30PM
BILL said...
You may call Cramer interesting. I call it a wasted hour with ranting and raving and theatrics unbecoming a man who has a respectable brain. I can't stand to see him act like a buffoon. Too bad his children have to see him like this.
bill
naples fl
2-18-2008 @ 1:03AM
p said...
Say what you want about Cramer. He was right about the fed. The fed had to lower the rates before prices started to fall any further. He has made me and saved me a lot of money with his information. All yale did is teach econ. 101 , Cramer also gives the same info. Cramer got the call right. jealous yale?
2-18-2008 @ 10:36AM
matt said...
I'd support cramer on this one. His picks, especially the lightning round picks, are pretty much a joke. Its really everything he gives you other than particular stock picks.. however some of his ones he features and does a 5 minute thing about are typically spot on (nokia for example). If you listen he always admits that he does it to keep it entertaining, which he seems to do even though its a bit much at times. Hes right in the overall market, his viewpoint on using analysts for contrarian investing is great and works really well.
Simply put the guy has way too much actual experience to every really discount and he lives and breathes the stuff. You might hate his approach to teaching it and keeping the ratings up and people interested but you can't have nothing but respect for a guy that really sticks his neck out and calls some stuff without, except for a handful of occasions, then contradicting himself. Most of the time he admits it when he does.
2-18-2008 @ 7:41AM
Johnson said...
What would you expect from an elite, stuck-up snob from Yale anyways...the worst part is, I bet he hasn't even ever WATCHED the program.
2-18-2008 @ 9:48AM
BILL said...
Both are right, cramer tells you to not buy when he touts a stock. I put it on my stocks to watch and let it ride for at least a week. I also use etf s and some homework. To me etf s is the way to play sectors .
http://bhdawg.MyWFL.com
2-18-2008 @ 9:15AM
jocostar said...
Mr. Cramer is in the entertainment business.
After someone reaches a certain level of financial sophistication, Mr. Cramer probably becomes irrelevant.
2-19-2008 @ 1:39AM
Mike said...
It's true - you can't really take Cramer's stock picks seriously - do your own research from a variety of sources and come to your own conclusions: you'll do a lot better. Cramer's real value comes from the first 5 minutes of the show, when he explains his thinking about the market. Some of his insights are brilliant, frankly. I Tivo the entire show, watch until the first commercial break, then delete it...
2-19-2008 @ 11:42AM
Will said...
It is in Swensen's best interests to bash Cramer and anyone else who believes individuals can actually make money investing. He doesn't have a job if Yale doesn't buy this argument.
That is the problem with America. We get upset when people don't understand subjects like investing better but then deride them when they actually attempt to increase their understanding of that subject through programs like Mr. Cramer's.
I'm not the biggest fan but it's better than nothing.
2-23-2008 @ 8:45PM
GIDEON said...
Cramer is a disatser walking on two. Those who took him seriously probably lost money big time There is no bear market for Cramer so how can you make money in a bear market????? Did you ever heard anyone on the show complaining that he/she lot money becasue of a bad tip???
Never!!! Those who lost money becuase of his poor advise are not welcome back to the show.
The may be mad but no one want to hear from mad people ry to say something bad about cramer you never will be able to get on the show.
Here some advise use a computer model to forecast stocks prices and not Cramer
Here is a site www.greensignalstocks.com which use a mathematical model and not human manipulation. These site keep it forecast for the last two years what cramer said last week no one remember except the people who lost big money!!!!
2-24-2008 @ 9:31PM
jeff mohr said...
cramer talked about moisenite artifical diamonds(cthr) about 1- 1/2 years ago, on and on about how great this would be - dropped about 30% in one night, then leveled of for a while - now selling for 1.30 (it was about 30) he said buy more when it was about 20 - sold at about 20 to cut my losses - glad i did - never listened to him much after that - he confuses me - all stock mistakes i have made were listening to others - will be on my own from now on