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Cramer rejects Buffett’s position on stock selection, favors hybrid model

On Monday, CNBC’s Jim Kramer dismissed Warren Buffett’s claim that new Wall Street retail investors were staying away from individual stock choices in favor of investing in index funds.

“I respect Warren Buffett, but I will always be a Peter Lynch man,” Cramer told Crazy Money, responding to comments from the chairman and CEO of Berkshire Hathaway. Cramer favors the investment philosophy of Lynch, the legendary investor known for managing Fidelity’s Magellan Fund and his book, One Up on Wall Street.


7;s philosophy is based on an investor who takes advantage of his ability to monitor, study and take action on stocks, Kramer said.

“That’s why I believe in a hybrid model. I don’t share Buffett’s contempt for home players trying to pick stocks, nor do I want you to go all-in for individual stocks,” he said.

Kramer provided a list of retail stock ideas to investors to test Lynch’s principles.

“I don’t want it to sound simple. If you want to invest like Peter Lynch, you have to visit these places or try things, whatever arouses your curiosity,” Cramer said, inviting viewers to read Lynch’s book. “But I think one or two of these open-ended plays go well with an index fund in your retirement account.”

A Berkshire Hathaway spokesman did not immediately return the request for comment.

Disclosure: Cramer’s charity trust owns shares in Walmart and Costco.


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