Are Jim Cramer Stock Picks Generally Successful?

Are Jim Cramer Stock Picks Generally Successful?

Barron's 2007 review of Jim Cramer's "buy" recommendations over a two-year period found that they underperformed the market as a whole, according to the company. Cramer's stock picks appreciated 12 percent compared to 22 percent for the Dow Jones and 16 percent for the Standard and Poor's 500.

Barron's analysis also found that while Cramer's stock picks performed well immediately following his announcement, they fell or remained stagnant in the following weeks, notes the company. MoneyWatch's Allan Roth also assessed four stocks that Cramer urged investors to sell in late 2012 and found the investments skyrocketed to be the four top-performing equities the following six months, says CBS. Roth noted that the odds of an individual incorrectly recommending that investors sell those stocks given their performance are less than one in 13 billion.