The Man Behind The Mad Money Madness
When you visit Jim Cramer on the set of his CNBC television show "Mad Money," you begin to understand that behind all the crazy antics, there is actually method to his madness.
"The show is about making money," he told Sunday Morning correspondent Rita Braver. "It's about being educational, but it's about entertainment."
But Cramer doesn't just teach people how to buy stocks, he tells them what to buy in his own special way. For example, he ate pancakes at Denny's while encouraging viewers to buy the restaurant's stock. He makes recommendations because that is what he says people want.
"I think all this other stuff is just pabulum. I think you gotta stick your neck out," Cramer said.
Cramer says his picks do better than the Standard and Poor's 500, although critics say his record is not that good. When he does makes a bad call, Cramer takes full responsibility and has literally "eaten crow" when he has made a mistake.
"When you screw it up, you should eat crow," he said. "I've eaten crow with ketchup. It's not enough to say I feel bad, it's not enough — you've gotta — you've lost people money. And that is a disgrace, and you just — if you are comfortable with losing people money, get out of this show."
In fact, Cramer got his show because of his record of making people big money. After Harvard undergrad and law school and a stint at Goldman Sachs, he started his own hedge fund in 1987.
"I was a wild man on my trading desk, I will admit," he said. "And then it was not only an act but it was to some degree painful for everyone involved in, including me. I needed to do something else. I had to recharge."
By 2002, when he retreated to spend more time with his family at his New Jersey estate, he had made a personal fortune. His hedge fund was rumored to be worth between $50 and $100 million — rumors he doesn't deny.
He could have done anything he wanted, and what he wanted was to stay in the money game. Cramer co-founded TheStreet.com, an Internet site that celebrated its 10th anniversary last month. Even more rewarding, he says, is using the skills he once employed for his fat-cat hedge fund clients to help everyday people make money through his string of best-selling books and his TV show.
"It's what I'm good at. I mean, I don't wanna make 'em poor, of course," he said. "No, it's like what I see all the time; you say this stuff it always makes you sound like such an arrogant joker. But it's my gift. OK? It's my gift."
Cramer calls his viewers "Cramericans," and his show has reached cult status on some college campuses. "Mad Money" has a greater percentage of young viewers than any other cable show. Braver talked to some students at Georgetown University about why they watch.
"He captures your attention by doing funny things, breaking it down so like the common person can understand it," Andy Prawl said.
Nothing thrills Cramer more than knowing he's going out there to try to teach people of all ages how to make money.
"I come to play every day," he said, "and it's just, I just cannot wait."