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.

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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.”

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