Jim Cramer Loses Stock-Picking Bet
with David O. England

So-Called Market Guru Flunks When Finance Professor Tracks His Buy-Now Picks

Industry insiders like Jim Cramer push buy lists that seem like easy shortcuts. Are these buy lists safe without using a proven buy/sell system? More important, are they profitable? I answered these questions by tracking the performance of the 49 stocks Cramer recommended in his April 6, 2015 article on TheStreet.com. After reading Cramer’s recommendations, I invested $1,000 (via a paper-trade account) in each security Cramer recommended. I tracked the results for six months through October 7th.

The results are in and Cramer gets a failing grade. Only 16 of 49 securities closed higher than they were when I invested in April 2015. That’s less than a 33% success-rate. 

  • 33 of 49 of Jim Cramer’s recommended securities are down since April 7, 2015
  • More than half (25 of 49) of his recommended securities are down double-digits
  • The dirty little secret Wall Street never discusses: Percent return to recover. 19 of 49 securities  would have to rise more than 25% from current levels just to recover to break-even (April 7, 2015) levels.
  • Overall performance of 49 recommended securities since April 7, 2015: -9.18%
  • S&P Index performance over the same period: -1.38%
  • Jim Cramer picks vs. S&P over this period: -7.8%

The moral of this story: If you blindly follow the so-called “market gurus” and their buy-now lists, you can put your financial future at risk. 

A better approach: Discover how to evaluate securities so you can judge investment recommendations and decide for yourself how to secure your financial future.

Become an EOM Member today and receive the seven online lessons to learn David’s Simple Simon Proprietary strategy. What David used to analyze Jim Cramer’s stock picks!

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  • Methodology

    Click here to read our methodology for The Cramer Challenge

  • Read Q&A with David, Published in the Southern Business Journal

    David explains why he is challenging Jim Cramer and why people should care.

  • Tune In to the "Cramer Challenge"

    David describes the “Cramer Challenge” in this interview on WJPF radio.

  • Watch David Discuss the "Cramer Challenge" with the WSJ

    In this video The Wall Street Journal’s Lee Hawkins interviews David regarding the “Cramer Challenge.”