Although Jim Cramer does what he can to avoid risk, that doesn't mean he shuns it altogether. On the contrary, he believes that every investor should have at least one higher risk stock in his or her portfolio.
Cramer calls these kinds of stocks "spec stocks" because they're only for speculation; he introduces them regularly on "Mad Money," usually on Fridays.
Cramer's commitment to speculation stems from his sincere belief that by doing thorough research or homework and then putting money to work strategically, investors can mitigate the risk and ultimately generate sizable returns.
However, because these investment can go south, he also says they should never total more than 20 percent or your holdings.
If you're got the appetite, Cramer has many ideas. Following is a recap of 3 spec stock ideas recently introduced on "Mad Money." Again, these stocks pose somewhat higher risk, but Cramer thinks the odds are worth it.