In a recent episode of CNBC’s “Mad Money,” host Jim Cramer advised investors to adopt a long-term approach and remain invested in good companies, even in the face of short-term losses.
What Happened: Cramer suggested that investors should not emulate the trading habits of large hedge funds. Instead, he recommended a long-term investment strategy, emphasizing the need to anticipate and endure market declines, reported CNBC on Thursday.
“You need to think about these kinds of challenges before you buy any stock, and most certainly before you sell any stock,” Cramer said. “You don’t need to swap in and out of stocks constantly like a hedge fund manager, you just need to figure out which companies deserve your confidence and you stick with them.”
He cautioned that even solid companies may experience share price declines, but it’s unwise to immediately exit. Cramer highlighted ...