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Source: CNBC Television

Never subsidize losers with winners, says Jim Cramer

Jun 28, 2023 · 1m 39s

https://www.youtube.com/watch?v=n_feoBlmqXc

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THIS IS PARTICULARLY DANGEROUS FOR A HEDGE FUND. WHERE THEY WILL GET MORE REDEMPTIONS. IF YOU KEEP SELLING WINNERS TO GET YOUR MONEY BACK, IT BECOMES A NIGHTMARE. YOU ONLY HAVE A FINITE AMOUNT OF CAPITAL TO INVEST. MANY PEOPLE REMAIN IN DENIAL. YOU'VE DONE IT, I'VE DONE IT. NEVER SUBSIDIZE LOSERS WITH WINNERS. THE TRADITION IS SIMPLE, SELL THE LOSERS. GO BACK THE NEXT DAY AND BY THEM.

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YOU WILL BE TEMPTED TO BRING THEM BACK. IF YOU WANT TO HANG ONTO A LOW QUALITY STOCK IF YOU'RE HOPING FOR A TAKEOVER. THERE IS A LIFETIME WORTH OF GAMES WAITING FOR THE TAKEOVER. THESE INCLUDE BUYING A LOT OF BAD COMPANIES HOPING THAT YOU MIGHT CATCH A BIG ONE. IN REALITY THERE ARE GREAT COMPANIES THAT GET STOCKS. TH

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