The former hedge fund manager spoke about the importance of investing for the long term and not being carried away by short-term fluctuations.
Jim Cramerthe former hedge fund manager and current CNBC host, spoke about the importance of investing for the long term and not getting carried away by the short-term swings. To illustrate his view, used the profits that Google made in the 20 years it has been listed on the stock exchange.
From that moment until today, Its shares rose by more than 7,700%which translates to an average of 385% per year. And in all this time, the company has gone from being a simple technology company with potential to being on the podium of the largest and most influential corporations in the world.
What the strategist analyzes
For Cramer, Google “rings the cash register too often on the way up.” “When it comes to truly great companies, not the indexes, but the companies themselves that I praise, The real risk is that you will panic and despair. I challenge you to be able to handle it.“, the specialist commented.
“If the short term says to sell, for me, That means it’s time to dig in and accept the acceptable losses that can’t be avoided. “These stocks are too good to pass up,” he said.
For Cramer, although it is not possible to know exactly which new companies will prosper like Google and which will collapse like Nokia, the truth is that, If a business is consistent and generating cash flow, then it is highly likely that its stock will grow over the long term.
Source: Ambito
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