Cramer rejects Buffett's stance on stock picking, favors hybrid model


CNBC’s Jim Cramer on Monday rejected Warren Buffett’s assertion that Wall Street’s new retail buyers keep away from individual stock picking in favor of investing in index funds.

“I respect Warren Buffett, but I’ll always be a Peter Lynch guy,” Cramer mentioned on “Mad Money,” reacting to the feedback from the Berkshire Hathaway chairman and CEO. Cramer favors the funding philosophy of Lynch, the legendary investor identified for his administration of Fidelity’s Magellan Fund and his ebook on investing, “One Up on Wall Street.”

Lynch’s philosophy relies on an investor profiting from his or her means to watch, research and take motion on a stock, Cramer mentioned.

“That’s why I believe in a hybrid model. I don’t share Buffett’s contempt for homegamers who try to pick stocks, nor do I want you to go all-in on individual stocks,” he mentioned.

Cramer offered a listing of retail stock concepts for buyers to check Lynch’s rules.

“I don’t mean to make it sound simple. If you want to invest like Peter Lynch you need to actually visit these places or try things on, whatever sparks your curiosity,” mentioned Cramer, suggesting that viewers learn Lynch’s ebook. “But I think one or two of these reopening plays go well with an index fund in your retirement account.”

A spokesperson for Berkshire Hathaway didn’t instantly return a request for remark.

Disclosure: Cramer’s charitable belief owns shares of Walmart and Costco.

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