" In February 2000, hedge-fund manager James J. Cramer proclaimed that Internet-relations companies 'are the only ones worth owning right now.' These 'winners of the new world', as he called them, 'are the only ones tat are going higher consistently in good days and bad.' Cramer even took a putshot at Graham: 'You have to throw out all of the matrices and formulas and tests that existed before the Web... If we used any of what Graham and Dodd teach us, we wouldn't have a dime under management.'"
Cramer basically ignored Grahams advice. What happened been March 2000- October 2002? Stocks lost 50.2% of their value. The dot.com crash.
Another interesting fact: http://www.thestreet.com/funds/smarter/891820.html
" Cramer's favorite stocks did not go 'high consistently in good days and bad.' By year-end 2002, one of the 10 had already gone bankrupt, and a $10,000 investment spread equally across Cramer's picks would have lost 94%, leaving you with a grand total of $597.44. Perhaps Cramer meant that his stocks would be 'winners' not in 'the new world', but in the world to come.
Follow Benjamin Grahams rules and you will do well!! Try and beat the market, and you will end up losing!
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