I have used your Charitable Trust portfolio to establish my own portfolio with the same relative weights. When you buy or sell, so do I. My question is this: If you issue an alert like this — ” Buy, Buy, Buy . Why I like Disney (DIS), Advanced Micro Devices (AMD) and Caterpillar (CAT) so much,” why aren’t you buying? — Bob B. We understand and appreciate that it can be confusing to hear us call a stock a “buy” and not pick up shares for Jim Cramer’s Charitable Trust, which serves as the portfolio for the Club. It may seem like we’re saying one thing and doing another, but that’s not the case. It basically comes down to us at the Club wearing multiple hats: we’re reporters, analysts and portfolio managers. As a result, we try to do three things everyday: Report and analyze important news with our take; provide analysis and views of the stocks we own, and actively manage our portfolio of holdings. All of these functions help us educate members become better individual investors. The answer to Bob’s question lies within the different objectives of the second and third goals. 1. The first function is pretty straightforward, we report on the news to keep our members up-to-date on the happenings of our holdings. We also ask this key question: “Why should a shareholder (you) care?” The answer informs our Club take, or “Bottom line” — basically how the news impacts our investment thesis. 2. With the analysis of individual stocks, we are attempting to think about a company’s position in the market, its standing versus peers, catalysts on the horizon, its valuation and so on. We are not really thinking about the name in the context of the portfolio. We’re not thinking about the other holdings we own that may be correlated with the name in question. We also are not thinking in terms of weighting or exposure, given the risk profile of the stock in question. Ultimately, when conducting the research and analysis portion, we aren’t thinking about the name in the context…
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