Cramer uses his old hedge fund playbook to see which stocks are working

Jim Cramer at the NYSE, June 30, 2022.

Virginia Sherwood | CNBC

How will we know if we are OK with the stocks we own?

I want you to learn how to size up your companies by asking what they are levered to, what matters to them. This concept of levered is not about debt. It’s about figuring out what exposure these company have to key issues that can help assess if we are, indeed, OK. What will drive sales? Earnings? What could — can and has been — making things go right or wrong? I ran through this concept during the Investing Club’s June Monthly Meeting on Thursday.

Why is it concept so important? It’s a quick way to sum up what’s ailing a stock or what’s really propelling it — all the better to know why you should hold on to something or cut bait. I found this levered concept incredibly valuable when I ran other peoples’ money at my hedge fund years ago.

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Secular Times is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – seculartimes.com. The content will be deleted within 24 hours.

Leave a Comment