Jim Cramer says you want to pick stocks that meet two criteria
2025-12-29_23-52 • 1m 45s
Jim Cramer (Host of Mad Money)
00:00.560
All
night,
I've
been
making
the
case
for
my
new
investing
playbook.
Put
half
your
money
in
a
cheap
index
fund
and
then
put
the
other
half
in
a
portfolio
of
five
individual
stocks
and
one
non-stock
hedge
like
gold
or
Bitcoin.
This
is
all
laid
out
by
the
way
in
how
to
make
money
Jim Cramer (Host of Mad Money)
00:14.560
in
any
market.
So
far
we've
been
talking
about
why
it's
worth
picking
individual
stocks,
but
now
I
want
to
talk
how
how
you
do
it.
As
in
what
the
heck
are
you
supposed
to
identify
the
five
stocks
that
are
worth
owning
in
your
portfolio
out
of
thousands
of
stocks
that
trade
in
Jim Cramer (Host of Mad Money)
00:28.280
the
United
States.
What
you
One,
big
picture,
are
stocks
that
meet
two
criteria.
They
need
to
be
observable,
meaning
you
can
see
what
the
companies
do,
and
they
need
to
be
doing
something
that
you're
genuinely
curious
about.
Is
it
really
that
easy?
Of
course
not.
But
those
are
Jim Cramer (Host of Mad Money)
00:42.600
the
first
two
questions
you
need
to
ask
because
if
it's
not
observable
and
it's
not
something
you're
curious
about,
then
how
will
you
ever
put
in
the
time
to
find
out
if
it's
even
worth
owning?
Believe
me,
you'll
stop.
Now,
say
you're
getting
started
and
you
spot
a
company
that
Jim Cramer (Host of Mad Money)
00:55.960
jumps
out
as
winner.
You
can
feel
it
in
your
bones,
but
let
me
be
Odds
are,
you're
wrong.
Right
here
is
where
most
people
make
the
worst
mistake.
They
somehow
feel
that
they
know
more
than
the
market
does
about
a
given
stock
without
doing
any
research
whatsoever.
The
truth
is
Jim Cramer (Host of Mad Money)
01:11.360
you'll
never
know
more
than
the
market
does
unless
you
have
inside
information,
but
if
you
trade
on
inside
information,
you're
going
to
go
to
prison.
Like
I
mentioned
before
the
break
though,
you
should
have
an
edge
when
you
invest
in
something,
but
these
days
that
edge
likely
Jim Cramer (Host of Mad Money)
01:22.840
won't
come
from
knowing
information
that
others
don't.
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