Jim Cramer can’t guarantee that following certain financial strategies will see you to a secure retirement, but he’s pretty sure of a few that won’t.
In the preface of his book, “How to Make Money in Any Market,” Cramer issues a few warnings about building long-term wealth. One is that your confidence “might be misplaced” if you plan on relying on Social Security to fund your retirement. Another is that betting on the outcome of basketball games is not a solid investing strategy.
“Third, and maybe worst of all, trolling the internet for ‘meme’ stocks like GameStop and hunting for short-term victories in the hope of long-term financial stability is an easy road to disaster,” he writes.
A “meme” stock is a stock that gains sudden popularity on the internet, leading to skyrocketing prices. Cramer cautioned investors about such investments during GameStop’s original Reddit-fueled trading frenzy in 2021, during which GameStop stock went from less than a dollar per share to an intraday high of $120.75, adjusted for splits.
Cramer says the backlash from some investors was fierce enough that he hired private security. But many investors who didn’t heed his warning got burned: By 2024, GameStop stock traded in the neighborhood of $10 a share. It’s currently trading around $20.
