Odd Lots: Jim Cramer on the Retail Trading Revolution

Podcast: Odd Lots, Bloomberg
Hosts: Joe Weisenthal & Tracy Alloway
Guest: Jim Cramer
Date: September 22, 2025

Episode Overview

This episode dives into the ongoing "retail trading revolution" with legendary market personality Jim Cramer—host of CNBC’s Mad Money and author of the new book How to Make Money in Any Market. The hosts explore the explosive rise of individual trading, the tension with old-school index investing, institutional mimicry of retail tactics, meme stocks, information democratization, and personal stories from Cramer’s investing and media career. Cramer offers candid perspectives on stock-picking, the dangers of day trading, pop finance culture, and the responsibilities and misgivings that come with being a prominent figure in the financial world.

Key Discussion Points & Insights

1. The Retail Trading Revolution & Indexing Backlash

• Theme: Retail investors have rebelled against decades of “just buy index funds” advice, embracing direct trading, options, and speculation.

  • Joe Weisenthal (01:51): “...in the media, there is this incredible drumbeat of experts and ads…All these experts that they say don’t try to beat the market...And now though, for the last several years, [retail] is doing the exact opposite…”
  • Tracy Alloway (02:33): Institutional investors are now "copying what retail does." Retail is often leading the way on new trends like zero-day options.

• Cramer’s Approach:

  • Believes individuals always wanted to speculate.
  • Advises blending strategies: “Own an index fund for half your money…then take five slots, try to find four really good stocks and a speculative one.” (Jim Cramer, 05:00)
  • Encourages long-term compounding—something lost in pure day trading.

2. Long-Term Investing vs. Day Trading

• Cramer’s Core Message:

  • Advocates for “picking stocks and holding them.”
  • “They can’t win day trading at home.” (07:55)
  • Offers advice on analyzing businesses, not just buying because of hype.
  • Updated research methods—embraces tools like ChatGPT and Perplexity to make retail research easier (08:04, 49:22).

• Notable Examples:

  • Vulcan Materials and Philip Morris both produced outsized returns for patient, long-term holders (06:34).

3. Meme Stock Era, Public Participation, and Market Excess

• Reflecting on Meme Stock Mania:

  • Cramer recounts being out post-surgery while GameStop quadrupled overnight:
    “I finally just pulled the catheter out...and I called into Carl and David...and said, this is ridiculous. Everybody has to sell. After that, it was 24/7 bodyguard, because I destroyed the chain letter.” (Jim Cramer, 12:04)
  • Received death threats for criticizing meme stocks.

• Does Cramer Have Misgivings?

  • Yes, he sometimes worries things have “gotten out of hand.”
    “Do you ever think this has gotten out of hand?...Do you ever have misgivings about the degree of public participation in the market?” (Joe Weisenthal, 11:13)

4. Educating Retail – Tools, Balance Sheets, Compounding

• Teaching the Basics:

  • Cramer devotes parts of his book to teaching how to read financial statements:
    “I take the risk of 20 pages about how to read a balance sheet...if I’m telling people to own individual stocks, I have to help them...” (Jim Cramer, 10:09)

• Role as Educator:

  • Sees himself first as an educator, second as a stock picker (29:23).
  • Uses analogies and even "sound effects" to explain arcane finance for mass audiences.

5. Media, Public Persona, and Dealing with Critics

• Sustaining a 20-year TV Career:

  • Cramer is up at 3:15am, reads voraciously, and does relentless prep:
    “I start with the ft...look at the future. CNBC.com, Bloomberg, New York Times, Wall Street Journal...I get 700 emails a day...” (24:51–25:26)

• Enduring Public Scrutiny:

  • Recalls Jon Stewart appearance as a career low:
    “I came with my F game. And it was mortifying and terrible. And every time I looked out...I always thought people look at me as I was...” (Jim Cramer, 43:53)
  • Explains mental health strategies for handling public abuse (44:16–45:08).

• Bear Stearns Rant:

  • Famous for “They know nothing!” outburst before the crisis hit:
    “I just had to interrupt, and I said, look, they know nothing. They know nothing. And that was speaking about Ben Bernanke...” (Jim Cramer, 45:30)

6. Political & Social Angles: Shareholder Society, Workers vs. Owners

• “Shareholder Class Divide”

  • Politicians rarely champion the shareholder as a societal class, despite wide stock ownership: “Why don’t people talk about the shareholder class?” (Joe Weisenthal, 19:03)
  • Cramer: “Ownership means compounding. And compounding is a very boring word, but it is what makes you the biggest money.” (19:44)

• Tension: Layoffs Boosting Stock Prices

  • Cramer lobbied for workers to get shares when laid off, since layoffs often rally stocks (35:48). Nothing came of it, despite positive feedback from President Clinton.

• Younger Self: Leftist/Spartacist Roots

  • College-era sympathies for workers, led a wildcat strike, then became disillusioned after witnessing real-world job loss from activism (31:26–34:43).

• Ranks Presidential Market Knowledge:

  • Clinton: “very smart about the market.”
  • Bush: “not that smart.”
  • Trump: “proud of not knowing stocks,” but wanted to be in on the action (21:15–21:40).

7. Information Revolution & Technology’s Impact

• Leveled Playing Field:
  • Now, “the guy who's day trading from his basement probably has a very good finger on the pulse of the market—possibly better than some of the professionals” (Tracy Alloway, 08:51).
  • Cramer embraces ChatGPT and Perplexity for faster research (49:22).

8. Market Valuation, Bubbles, and Risk Management

• Are We in a Bubble Now?
  • “There’s two markets...there’s this [musical chairs] market...I accept that you want to speculate. Go do Palantir...But I want people to stop. Let it be one of your holdings, but don’t do all, because it will be crushed.” (Jim Cramer, 52:58)
  • Advocates always taking out your cost basis when speculation pays off:
    “You take out over time your cost basis and then you play with the house’s money...a Hippocratic oath.” (55:10)

Notable Quotes & Moments

• On Retail Trading:

  • “If they're going to do it, why not help them?...Maybe they do it long term own stocks....You can't beat the machines trading, but you can beat them if you compound long term in really good stocks.”
    —Jim Cramer (05:00)

• On Day Trading:

  • “They can't win day trading at home.”
    —Jim Cramer (07:55)

• On Meme Stocks & GameStop:

  • “I finally just pulled the catheter out...and called in...and said, this is ridiculous. Everybody has to sell. After that, it was 24/7 bodyguard, because I destroyed the chain letter.”
    —Jim Cramer (12:04)

• On Education:

  • “I have to help them with ChatGPT and how to analyze balance sheet and how to actually go line by line. Because I don't want to be irresponsible...”
    —Jim Cramer (10:09)

• On the Efficient Market Hypothesis:

  • “We revere the index fund. Good. We get one really good one. You have seven good ones and 493 bad. Well, that’s not my style.”
    —Jim Cramer (08:25)

• On Public Persona & Resilience:

  • “Give yourself a break. Most of them are not [thinking of your mistakes]...you're not a mind reader. Take people at face value.”
    —Jim Cramer (44:16)

• On Market Cycles:

  • “At any given moment, in a boom or a bubble...all these things feel like a top in the moment. And then you realize they were just little hills on the way to a much bigger mountain.”
    —Joe Weisenthal (55:03)

• On Compounding:

  • “Einstein did not call it the eighth wonder of the world, but we know that that is a much better way to make money.”
    —Jim Cramer (53:59)

• On Research Evolution:

  • “Jensen Huang...says, I know you spend all your time reading these reports. I just urge you to ChatGPT the advanced and get the concise version...and that has changed my life.”
    —Jim Cramer (48:32)

Timestamps for Significant Segments

• Introduction of the Retail Revolution – 01:44–03:33
• Cramer’s Stock-Picking Philosophy – 04:00–08:51
• Day Trading vs. Compounding – 07:54–10:09
• Meme Stocks, GameStop, and Threats – 11:13–14:00
• Quarterly Reporting vs. Six-Month Reporting – 17:11–18:54
• Shareholder Class & Political Perspectives – 19:03–22:09
• Cramer's Media Career & Daily Routine – 22:17–27:52
• Sound Effects, Mad Money Production – 28:00–29:23
• Cramer’s Political Evolution & Worker vs. Shareholder Debate – 31:26–35:48
• Handling Public Criticism & Memeable Moments – 43:49–47:26
• Information Revolution & AI Tools – 49:08–49:43
• Market Valuations & Bubble Discussion – 52:44–56:07
• Risk Management: Taking Profits in Speculation – 55:03–55:40

Closing Thoughts

Cramer’s message is that retail investors are here to stay, their role is only growing, and both their successes and mistakes are now shaping the entire market. While he acknowledges the dangers of excessive speculation, he champions smart, educated stock-picking—blending classic investment wisdom with modern tools and a touch of Mad Money showmanship. Cramer’s anecdotes underscore a career devoted equally to financial markets and public education; his life itself is a bridge between the Wall Street elite, the everyday investor, and the wider culture of American trading.

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