Jim Cramer's recommended trades since 1/1/2002 earned 39.2%.
But,
Simply holding the S&P 500 index fund since 2002 would have earned you 38.3%.
You could have bought the index and not looked at a thing, went on with enjoying life, or you could have followed Cramer's advice through a service - Actions Alerts PLUS and earned 39.2%.
To earn the 39.2% would have required an average of 774 trades/year over the last 3 years. Remember, with trades comes trading costs, taxes and the cost of the newsletter ($299.95 for the 1st year). Also, the return assumes you made all the trades when you were supposed to.
I would be surprised, if after fees, the Cramer advice outperforms the S&P 500.
The choice is yours, spend your time trying to beat the market year after year, or accept the returns of a well diversified portfolio and have more time to golf, read, lounge, be with kids, etc.
The above information is from Jason Zweig's June 4, 2011 Intelligent Investor column in the WSJ:
http://professional.wsj.com/article/SB10001424052702304563104576363892725584866.html?mg=reno-secaucus-wsj
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