Jim Cramer, CNBC's Jim Cramer shares his essential investment tips. He told investors on Tuesday that patience was a virtue, and giving up value is a sin.
Cramer advised, "Don't hesitate to pay more for the best stocks."
He shares key investment tips that he has learned in his career. He said that the quality of a company and its products is one of the most important things to consider when choosing stocks.
Cramer advised: "Don't hesitate to pay more for the best stocks." They may have higher multiples of price to earnings than stocks from lower-quality companies but they are also less likely blow up.
Cramer loves a good bargain, but only when the merchandise it is based on is valuable. He added that buying junk at a cheap price is not a bargain.
Cramer stated that "if you have a reason to believe in an enterprise, do not dump its stock because it isn't gaining traction at the moment." You're not even a hedge-fund manager! You don't have to make money on your positions every quarter, every month, or even every single day.
Cramer said that being patient and letting stock stories unfold often pays off over time. He recalled a period in 2016 where stocks were gaining momentum.
Stocks had fallen from $31 down to $23 within a short time. Cramer, who said he had assessed the situation, felt the company still had all the essentials for an excellent stock. These included a quality product, customer loyalty and a revenue stream. Cramer has done well by sticking to Apple and encouraging other investors to buy its stock at $23.
Don't be scared away by the bears if you've found a company you like with a good story. Even if it's temporarily down, you should not give up. "Patience is the virtue and giving up a good value stock is sin."
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Disclosure The CNBC Investing Club Charitable Trust owns shares in Apple.
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