Jim Cramer reacts to Warren Buffett's concerns about individual stock picking

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[joekerr]

“Bear Stearns is fine!” Jim Cramer, March 2008.

[Destorrrrr]

Buffett doesn't say everyone should be buying index funds, he very clearly says that index funds are the best option for people who don't have the knowledge/skills/disposition to competently value stocks and buy them at good prices. His entire investing philosophy is built around buying what he understands and ignoring what he doesn't. If you don't have any really specialized knowledge or don't want to put in the effort, an index fund is a solid choice.

He's also obviously arguing against the speculative gambling people are focused on nowadays and nothing more... Anyone who misconstrues his intent is obviously incentivized to push the speculative gambling and pushing that is serving their own best interests.

[travisdavis]

The difference is Buffet is giving advice he believes and Crammer wants to make money off of his audience

[LatinosEmpresarios]

Buffet said, IF you don't know how to pick individual stocks, then invest in indexing fund's.

[MrMountain]

Charlie Munger said Jim is a fool in the past

[dougbrown]

Jim I'm the first seeing this...Nice Job!... Keep up the good work I've been watching you sense the beginning on CNBC! Doug

[John-mzte]

Investing is one of the few activities where hard work and diligence does not necessarily lead to better results. Some granny sitting on the couch owning a S&P 500 index fund is beating the vast majority of hyperactive stock pickers with all of their research tools and television host advice. Pick individual stocks if you think it's entertaining, but don't get carried away. I don't mean that to be condescending, but the debate on this one was settled a long time ago.

[MarkBanks]

The only index fund I own is the S&P 500

[wohola]

The truth is somewhere in between. That’s some wisdom!

[zacksnyder]

Peter Lynch has always been my favorite. Warren wants everyone to buy index funds yet, he only buys individual stocks and always touts that Berkshire will beat the market. Additionally, if you want to diversify, hold a lot of stocks that you like since it also gives you better cash flow.

[mikeny]

As you've always said, Jim. "Buy and HOMEWORK!"

[jouleSansLoi]

Jim, you call it Mad Money, we call it our Yolo account.

[shazam]

To make people at home believe they can do "homework" and consistently outperform the market misleading.

[clarabeatriz]

Nice video!! Very engaging from beginning to end. Nevertheless, businesses and investment are the easiest way to make money irrespective of which party makes it to the oval office.

[HistoryRepeat]

Buffett is saying that the homework answers are wrong, he is not questioning the effort, he is just saying that the approach is wrong and that it would lead to curbed success.. not no success but more importantly that once the habit forms, it is much more difficult to correct so why not point out the mistake early and hope people pay attention. Rather than dismiss his view, who loses anything by quiet reflection on what he says. Don't like it, makes no sense then don't do it, that is education Jim.. teach that.

[harrychu]

American society has an unhealthy obsession with celebrity worship. It would be better if we stopped looking up to people we do not know and likely never will.

Think for yourself.

[denialphasebitcoin]

Buffet is an investor, Cramer is a salesman

[shilo]

He is the LAST person I would take investing advice from. Wasn't he the guy who was Embarrassing wrong in all the busts we've gone thru in the past 15 yrs. My advice is whatever he pushes then do the opposite. He'll never be 1 tenth the genius Buffet is.

[DandyFinance]

Mad money is the only money I can afford.

[highmetal]

Jim next time you actually need to tell the younger members of you're audience that basic mathematics hasn't changed since the previous generation.