Jim Cramer wants you to stop expecting billionaire investors to help you build wealth. “Billionaires won't save you—they're out for themselves,” he wrote for CNBC.com recently.
“I can count on a couple of fingers the number of billionaire hedge fund managers who have actually tried to help other people's capital appreciate,” the longtime CNBC host and former hedge fund manager said. He said there are far more billionaire investors who incite fear and pressure others into selling their stocks than those who genuinely try to help others grow their capital.
Don't Miss:
- Missed Nvidia and Tesla? RAD Intel Could Be the Next AI Powerhouse — Just $0.85 a Share
- Deloitte's #1 Fastest-Growing Software Company Lets Users Earn Money Just by Scrolling — Accredited Investors Can Still Get In at $0.50/Share.
Focus On Fundamentals, Not Billionaire Panic
Cramer argues that too many retail investors get shaken out of solid positions because they listen to billionaire warnings that often amount to fearmongering. “Billionaires never apologize for their negativity. They always portray themselves as responsible actors no matter what. Because they don't need to. They already have their money,” he wrote.
Cramer believes these ultra-wealthy investors operate with an entirely different risk profile. According to him, they avoid taking chances unless success is nearly guaranteed, which makes them unlikely to share stock ideas that would benefit average investors. Their worldview, he emphasized, simply doesn't align with that of everyday people trying to grow their wealth.
This realization came early in Cramer’s career when he was asked to advise an heiress worth billions. Instead of recommending stocks, his boss told him to stick with safe municipal bonds. “You only need to get rich once,” the boss said. Cramer now sees that as the right call. “For her, protecting capital mattered more than growing it.”
Trending: An EA Co-Founder Shapes This VC Backed Marketplace—Now You Can Invest in Gaming's Next Big Platform
Cramer's broader point is that everyday investors should avoid following loud voices promoting fear, especially when those voices belong to people with vastly different financial goals and safety nets. He encourages individuals to stay grounded in the fundamentals of their own investments instead of reacting to doomsday signals from the bond market or billionaire forecasts.
“Do not listen to the people who examine the curve of the bond market and decide that they should sound the alarm about the future, which includes selling perfectly good stocks,” Cramer wrote for CNBC. “Pay attention to the fundamentals of your stocks, not the bond market's indications.”
In his view, stock success comes from discipline, learning from mistakes, and tuning out the noise, especially when that noise is coming from people who aren't playing the same game as you.
Read Next:
- GM-Backed EnergyX Is Solving the Lithium Supply Crisis — Invest Before They Scale Global Production
- Buffett's Secret to Wealth? Private Real Estate—Get Institutional Access Yourself
Image: Shutterstock
