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We recently published an article titled Jim Cramer Discussed These 7 Stocks. In this article, we are going to take a look at where e.l.f. Beauty, Inc. (NYSE:ELF) stands against the other stocks Jim Cramer recently talked about.
Jim Cramer, the host of Mad Money, recently shared valuable investing lessons drawn from his 40 years of experience in the field. He noted that he often emphasizes the importance of discipline over conviction, repeating this message regularly on his show.
“I am constantly on this show telling you that discipline always trumps conviction. I tell it to you over and over and over again. In other words, no matter how much you may love a stock, no matter how enthralled you are with the underlying story, if the rules say sell, you sell it.”
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Cramer also highlighted one of his fundamental investing rules: "Bulls make money. Bears make money. Pigs, well, they get slaughtered." He explained that this phrase serves as a reminder, especially when stocks rise sharply, and investors become overly confident in their gains. Cramer observed that, too often, people get intoxicated by their profits and start believing they are invincible. However, it is precisely at that point of overconfidence that caution is most needed, as acting like a pig can lead to significant losses. He then said:
“Just to be clear, bulls don't have a monopoly on piggishness. The same idea applies to investors who press their bets too shortly, too aggressively on the short side.”
He pointed out that the same principle applies to those who aggressively short stocks. He explained that while there have been significant market declines, such as the dot-com crash of 2000 and the financial crisis of 2008-2009, most stocks tend to recover fairly quickly. Even during the Fed-induced market downturn in late 2021, those who remained too committed to short positions for too long ended up facing painful losses. By the fall of 2022, markets had rebounded, and those who had not adapted to the changes were left with nothing.
“Why is this rule so important? Simple. One of my chief goals is to help you stay in the game. You know that's the hardest part of investing. It's holding on through the difficult periods, taking short-term pains so you can have long-term gains, which is what's happened in the stock market for, for a century.”
Our Methodology
For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 24. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.