Thursday, March 18, 2010

The Difference Between Jim Cramer and Naked Portfolio Managers

You can tell a great deal about how a fund manager goes about his business by the vocabulary he uses. For example, watch this video with CNBC's "Mad Money" host Jim Cramer and see how many times he uses words like "think", "see,"and "look."



Traditional judgment-based portfolio managers use words like "think," "expect," "see," "hope," and "worry." Naked portfolio managers, on the other hand, say, "I do." 

We know that emotions play a huge role in traditional portfolio managers' decision-making. Alternately, for the naked portfolio manager, he or she will simply follow a set of predetermined rules and factor emotions out of his or her thinking.

                            

Can you tell the difference?
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posted by Bob Fischer at

1 Comments:

Anonymous David bakke said...

I think this Cramer guy will fade into the sunset, just like most of the so-called latest and greatest investment gurus.

March 19, 2010 6:45 AM  

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