How Cramer Beat the S&P 500

There have been many remarks made as to whether or not Jim Cramer of Mad Money has been doing better or worse than the S&P 500. Cramer has defended his picks saying that people need to focus on the themes of his picks, and not just individual stocks. Today we will compare Cramer's top 9 stock picks for 2007 to the S&P 500.

Cramer gave 9 stocks for 2007. He split them up into 3 groups, speculative, value, and growth. The top 3 speculative stocks were Level 3 Communications (LVLT), Rite-Aid Corporation (RAD), and Savient Pharmaceuticals (SVNT). The top 3 value stocks were Altria Group (MO), Goldman Sachs (GS), and Halliburton Company (HAL). Finally, the top 3 growth were NYSE-Euronext (NYX), Apple (AAPL) and Cisco (CSCO).

If one had a portfolio of the 9 stocks at the beginning of the year, this portfolio would be up 6.45%. The S&P 500 would have to be at 1507.97 to match this performance. Therefore, Cramer is well ahead of the S&P 500 in 2007, 6.45% to just under 5% for the S&P 500. It would be up even more against the S&P 500, when one considers that Cramer has told everyone to get out of the financials as the subprime crisis began to unfold, as GS is down over 5% YTD.

There has been some remarkable failures in Cramer's picks for 2007. GS obviously, and even more so, NYX, which was Cramer's #1 growth stock. NYX is down 27.57% YTD. Two of Cramer's speculative stocks have not panned out yet either, with LVLT down over 20% and RAD down over 8%.

On the positive side, Cramer has 5 winners in this portfolio that have more than made up for the above. AAPL is up over 60%; HAL up over 24%; SVNT and CSCO both up over 14%; and finally MO, which, when one adds in the KFT spin off is up almost 5%.

For those who do not have the nerve to speculate on the market, and seek safer investments, if we remove the 3 speculative stocks from this portfolio, Cramer's 2007 picks are up almost 11%!

Therefore, Cramer is right, and he has beaten the S&P 500 YTD.

Comments

[yourfilled:]

So what. As author of Tricks of the Active Trader, you might as well
talk about Krammer from Seinfeld. Every age has its Crammer. The 1920's had its Angela Adams.
What is it with media celebrities? What are you objectives? What is your investment philosophy?
Take a look at Bob Brinkers score card, while you are add it!
[e-mail]

2007 Sep 17 09:57 AM

[.StgMgr1:]

You sound like Liberals responding to Rush,Maybe you should watch first before you criticise Cramer.His message is DO YOUR HOMEWORK.Invest blindly and youget what you deserve

2007 Oct 13 12:40 PM

[CAPT. MERKIN:]

It's obvious you are not a Cramerican. Not a clue. Can't even spell his name correctly. Every age has its Crammer (Cramer)? What age are you trading in? Taken with a grain of sugar, this man has steered me toward investment rigor...and I have profited.
Note: I own 5 of the aforementioned stocks...up 10.43%. Booya.
Capt.Merkin

2007 Sep 17 10:17 AM

[Victhom:]

Mr Cramer should check Insiders at RAID....Jean Coutu PJC just add more to the 250M shares they've got from Rite-Aid in exchange of Brooks and Eckerds


May be Jean Coutu just need to buy 150M more shares to have control of Rite Aid???

see here: PJC bought extra 1.9M shares at @ $4.63 now trade at $2.84???
Trading Date Name Title Type Shares Traded Price
10/19/07 SAMMONS MARY F President & Chief Executive Officer Buy 200,000 $2.75
10/05/07 JEAN COUTU GROUP (PJC) INC Buy 45,200 $4.54
10/05/07 JEAN COUTU GROUP (PJC) INC Buy 221,700 $4.55
10/05/07 JEAN COUTU GROUP (PJC) INC Buy 150,700 $4.56
10/05/07 JEAN COUTU GROUP (PJC) INC Buy 180,300 $4.57
10/05/07 JEAN COUTU GROUP (PJC) INC Buy 131,300 $4.58
10/05/07 JEAN COUTU GROUP (PJC) INC Buy 244,400 $4.59
10/05/07 JEAN COUTU GROUP (PJC) INC Buy 106,500 $4.60
10/05/07 JEAN COUTU GROUP (PJC) INC Buy 96,400 $4.61
10/05/07 JEAN COUTU GROUP (PJC) INC Buy 233,062 $4.62
10/05/07 JEAN COUTU GROUP (PJC) INC Buy 52,200 $4.63
10/05/07 JEAN COUTU GROUP (PJC) INC Buy 142,000 $4.64
10/05/07 JEAN COUTU GROUP (PJC) INC Buy 152,400 $4.65
10/05/07 JEAN COUTU GROUP (PJC) INC Buy 2,500 $4.66
10/05/07 JEAN COUTU GROUP (PJC) INC Buy 37,500 $4.67
10/05/07 JEAN COUTU GROUP (PJC) INC Buy 56,400 $4.68
10/05/07 JEAN COUTU GROUP (PJC) INC Buy 39,000 $4.69
10/05/07 JEAN COUTU GROUP (PJC) INC Buy 52,800 $4.70
10/05/07 JEAN COUTU GROUP (PJC) INC Buy 30,900 $4.71

2007 Dec 31 06:17 PM