Jim Cramer created the Investing Club to help all investors build long-term wealth in the stock market. The CNBC Investing Club is now the official home to Jim's Charitable Trust. It's the only place where you can see every move Jim and his team make for the portfolio and get Jim's market insight before anyone else. Jim plays with an open hand and wants to help investors invest smarter.
- Why did Jim create the Trust?
- Why does the Trust give all profits to charity?
- What is the difference between the Trust and the "Portfolio"?
- Is the Trust an Investment Fund?
- How should the performance of the Trust portfolio be judged?
- How should the Trust and Portfolio be viewed by subscribers?
As a CNBC Investing Club with Jim Cramer member, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. See here for the Disclaimer.
As a paid member of the Investing Club you will also have access to live virtual monthly Club meetings, daily live videos, daily news and analysis, dedicated email newsletters and access to the Club home on CNBC.com.
The Club's monthly scheduled meetings with Jim and his team are around 1 hour in length and review the holdings in the Charitable Trust and answer questions submitted by Club members. These live discussions will be available to Investing Club members after the event.
Jim established the Trust in 2005 with a personal contribution of $3 million so that he could manage a real investment portfolio within the Trust as a teaching tool for managing your own portfolio, have his own money at risk, and share his investment ideas and trading strategy with viewers on CNBC and subscribers to his Investing Club.
To avoid conflicts of interest, the Trust requires all portfolio income and realized capital gains be distributed to qualified publicly supported charitable organizations. Jim does not benefit personally from any portfolio gains or income, however his personal funds are at risk for any losses related to the portfolio investments.
The Trust structure enables Jim to speak freely to his viewers and subscribers about his investment recommendations, and more importantly, provides an excellent educational tool for subscribers as they can view his current investments, trading history, holding periods, gains and losses, weighting, and diversification. The portfolio of investments and related data is fully transparent to Club subscribers.
Each year accountants at Anchin, Block & Anchin review the trust transactions and confirm the number of charitable donations required by the terms of the trust. Since its inception, the Trust has generated over $3.8 million in charitable contributions.
The Trust is a financial account that holds assets and sets rules for the disposition of related income and realized gains. The Portfolio is simply the current assets held in the Trust. Jim Cramer is the grantor of the trust and is the sole owner of the trust assets and is responsible for the investments held by the Trust. Jim utilizes the Trust's portfolio of investments primarily as a teaching tool for his subscribers.
The Charitable Trust is not an investment fund. The portfolio of stocks held in the Trust reflects Jim's recommendations on individual stocks that he and his team feel are attractive investments. Jim backs up his recommendations by putting his money at risk for each recommended stock. No one other than Jim has an interest in the Trust portfolio.
The portfolio is not managed like an investment fund or hedge fund and should not be viewed or evaluated as one. Jim has established trading rules for the Trust that further eliminate conflicts of interest but restrict the timing and scope of trust transactions and can impact performance. Jim's subscribers are not limited by any of these restrictions and can act on his recommendations whenever they deem appropriate.
The portfolio does not have a designated investment style or performance criteria, and it is not managed against a specific stock index. Jim does not employ derivative investments or leverage to enhance the returns of the portfolio. The focus on transparency and education combined with Trust trading restrictions make comparisons to market indexes somewhat subjective. The performance of the portfolio investments is provided for subscribers, however, our goal is for each subscriber and investor to utilize our recommendations and market insights to build a portfolio that most suits their investments needs and to be as successful as possible in meeting their investment goals.
The Trust portfolio represents a collection of stocks that Jim and his team currently think merit investment. Not all recommended stocks are appropriate for every investor and the portfolio composition will not suit all investor goals. The purpose of the Investing Club is to provide thorough analysis on recommended stocks, provide insights on market developments and the potential impact on individual stocks, and educate subscribers to assess risks to specific stocks, weigh upside vs downside, and equip them to make informed investment decisions.
The Bullpen is a collection of stocks that are not part of the Charitable Trust but have the potential to join it. We're monitoring and looking for opportunities to buy these stocks, but there's no guarantee when, or if, we'll initiate a purchase. Call it Investing Club's watch list: Your chance to peek at some of the investment ideas Jim and the team are batting around.
Jim has always believed in building a strong team, which is why he brought
For more information on how to join the Club or if you need assistance, contact InvestingClubSupport@cnbc.com