This CNBC Investing Club review will provide an in-depth analysis of Jim Cramer’s CNBC Investing Club to help you decide whether a subscription makes sense.
Quick Summary:
The CNBC Investing Club is a subscription-based investing service that provides stock picks, portfolio analysis, and market analysis.
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 of Jim Cramer’s Charitable Trust.
Overall Rating:
Stock Analysis:
Tools & Features:
Ease of Use:
Price:
Best For:
Active Traders
Momentum-oriented traders
PROS
- Real-time investment advice
- Monthly meetings with Jim Cramer
- Community engagement
- Real money invested
CONS
- Price
- Some duplicate content found on other CNBC shows
- No personalization
Price:
$49.99/mo
$399.99/year
Features:
Access to actual stock picks made by Jim Cramer
Exclusive investing articles
Access to Charitable Trust portfolio holdings
Nearly real-time trade alerts
Mobile App?
Yes, through the CNBC app
Current Promotions:
20% off Yearly Subscription
In this CNBC Investing Club Review, we’ll cover various topics, including the Club’s main features, pros and cons, user experience, credibility, and reliability. I’ll also review performance metrics and provide the best alternatives to help you make informed investing decisions.
About Jim Cramer
Jim Cramer is a seasoned investment guru best known for his role on CNBC’s “Mad Money,” where he offers investment advice and market insights. Capitalizing on his years of experience in the financial industry, Cramer launched the CNBC Investing Club, which aims to provide actionable investment strategies and exclusive insights from Cramer himself.
What is the CNBC Investing Club?
The CNBC Investing Club is a subscription-based investing service that provides stock picks, portfolio analysis, and market news from Jim Cramer and his team.
Jim 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 of Jim Cramer’s Charitable Trust.
The charitable Trust’s stock picks can only be viewed in the investing club. They are not available on Mad Money or any other investing platform related to CNBC.
Jim Cramer plays with an open hand and wants to help investors invest smarter. A former hedge
fund manager, Jim produced a compounded annual average return of 24% (after all fees) in 14
years. That included an incredible 36% return in 2000 when the S&P 500 lost 9.03%.
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 stock portfolio, having his own money at risk, and sharing his investment ideas and trading strategy with viewers on CNBC and subscribers to his Investing Club.
How Does CNBC Investing Club Work?
As a paid member of the Investing Club, you gain access to portfolio holding, new stock pick research, live virtual monthly Club meetings, daily live videos, daily news and analysis, dedicated email newsletters, and access to the Club home on CNBC.
The Club’s monthly meetings with Jim and his team last about one hour. During these meetings, they review the holdings in the Charitable Trust and answer questions submitted by Club members. These live discussions will also be available to members after the event.
As an added benefit, members receive trade alert notifications 45 minutes before Jim makes a trade for his charitable Trust.
Key Features
Below, we explore some of the key features of the CNBC Investing Club to help you decide whether to join.
Trade Alerts
As an investing club member, you get trade alerts with 45 minutes of advance notice before the Trust executes a trade. The alert also includes the portfolio team’s rationale for buying or selling shares. If Jim discusses the stock on CNBC TV, Jim waits 72 hours (about 3 days) after issuing the trade alert before executing the trade.
Once a trade is executed, the Club informs members of the number of shares purchased, the purchase price, and the change in portfolio weighting, as well as Jim’s reasoning for the buy or sell decision.
This insight can help investors decide how Jim’s trading activity could help drive decisions within their portfolio.
Morning Thoughts
Every morning before the market opens, the Club distributes Cramer’s Morning Thoughts via email and online. The “thoughts” consist of a list covering various subjects like earnings summaries, macroeconomic updates, analyst ratings, and upcoming earnings reports.
Cramer typically adds his perspective on each topic. While the information isn’t necessarily actionable, it provides a valuable market snapshot each morning.
Morning Meeting
Jim Cramer and Jeff Marks host “The Morning Meeting” at 10:30 a.m. daily, a livestream about market trends and key topics. The meeting is also available for playback. I’ve watched the meeting regularly. It’s good for providing a general update on the markets.
I like that Jim and Jeff touch on key macro trends, such as inflation and interest rates, and how they expect them to affect the markets. After that, Jim and Jeff touch on companies in the news, e.g., how labor negotiations could affect Ford.
The meeting is good for a high-level overview, and it’s only about 10 minutes long, which is good for people like me who have a short attention span.
Monthly Meeting
Each month, Cramer hosts a roughly one-hour, in-depth meeting to discuss:
- The current state of the market and economy
- Recent portfolio trades
- Strategy for upcoming weeks
Before the meeting, the Club encourages members to submit questions for Jim to answer on air. Some members also have the opportunity to film themselves asking a question and can submit the video to be included in the live meeting. The Q&A is also available in transcript format, which is nice to read on your commute to the office.
All monthly meetings are available for playback if you miss the live video. One cool feature is that they tag all the stocks that are discussed in the video. However, they don’t tag the time in the video in which the stock is discussed, which leads you to scroll through the video aimlessly.
Portfolio Access
As a member, you get full access to Jim Cramer’s charitable trust portfolio, including access to all the stocks in the charitable Trust. There are about 30 stocks in the portfolio at one time, including names like Apple and Alphabet, software firms like Nvidia and AMD, and defensive plays such as Costco.
Once I signed up, I had full access to the portfolio, which includes details like:
- Stock
- Number of Shares held
- Weighting
- Cost basis
- Price Target
- Stock Rating
- Realized/Unrealized G/L
While having access to the portfolio isn’t necessarily actionable, per se, it can give you a better perspective on managing your investments.
Inside the portfolio, all stocks are rated between 1 and 4:
- “1” means stocks that they would buy right now
- “2” means stocks that they would add on a pullback
- “3” means stocks that they would sell on strength
- “4” means stocks that they want to unload
There also are some stocks that are so-called “Core Holding.”
These “Core Holding” are companies that Cramer thinks should be held for the long term because, on a financial level, they have high returns on equity, strong margins, and low debt.
Exclusive Articles and News
As a member of the investing club, you can access exclusive articles related to the stock market and investing not available elsewhere.
Price and Value
The CNBC Investing Club offers a monthly and annual subscription. The yearly subscription allows users to save 20% versus the month-to-month subscription. However, there is no free trial, which would be helpful if you’re skeptical about going all-in.
- Monthly Membership: $49.99/month. No long-term contract
- Annual Membership: $299/year, save 20% compared to the monthly membership
That said, I like the investing club’s simple pricing. Unlike some other investing platforms, there are not six options, making it easy to decide whether you want the service.
I signed up for the monthly subscription because I wasn’t ready to go all in. There are no confusing pricing tiers or add-on options. It is simply a monthly or annual membership. All you need to do is enter your credit card information and select your option. They will send you a confirmation code to log in. That’s it. Then, you have full access to the Investing Club.
Pros and Cons Explained
By weighing these pros and cons, you can make a more informed decision about whether the CNBC Investing Club is a good fit for your investment goals and needs.
PROS
- Expert Insights: Gain access to Jim Cramer’s decades of investing experience, offering a unique learning opportunity.
- Real-Time Investment Advice: Receive timely alerts on buy or sell recommendations, helping you make quick and informed decisions.
- Portfolio Tracker: Keep tabs on Jim Cramer’s portfolio, serving as a benchmark for your investment strategies.
- Exclusive Content: Premium articles, videos, and webinars provide deep insights into various investment topics.
- Community Engagement: The community forum allows for valuable interactions with other like-minded investors.
CONS
- Cost: A monthly price of $49 is expensive, especially for novice investors. And may not be cost-effective for investors with smaller portfolios.
- Not for Beginners: The platform may not be beginner-friendly; some prior investment knowledge is recommended.
- Limited Personalization: The platform provides generalized advice that may not align with individual investment goals or risk tolerance.
CNBC Investing Club Performance
Jim Cramer’s CNBC Investing Club has a history of offering a diverse range of investment recommendations. These have spanned sectors such as technology, healthcare, and consumer goods. While some picks have outperformed the market significantly, others have been less impressive. Overall, the recommendations show a balanced approach between growth and value investing.
Of the 36 stocks in the portfolio, nearly 20% of the stocks are technology-focused, followed by 13% are communication services, at 13% consumer cyclical. However, most of the tech stocks are also cyclical, meaning if there is a pullback in the market, these stocks may suffer because they provide goods and services that are considered nonessential. So should there be a pullback in the economy, we could see the trust portfolio suffer as a result.
That said, I calculated a weighted average beta of all the stocks in the portfolio, and it turns out to be approximately 1.04, which means if the stock market goes up 1%, the Trust will go up 1.04%. And over the past four years, the Trust returned 15.14%, while the S&P 500 returned 12.90%. But with a beta of 1.04, the Trust would be expected to return 13.42%, so the Trust outperformed by nearly 2% – which isn’t bad at all.
| Year | Trust Portfolio | S&P 500 |
|---|---|---|
| 2023 | 24.52% | 24% |
| 2022 | -22.63% | -19.44% |
| 2021 | 27.85% | 26.89% |
| 2020 | 24.95% | 16.26% |
| 2019 | 30.39% | 28.88% |
Notable Successes
- Stocks like Apple and Amazon have been consistent winners, providing returns well above the market average, but then they’re also on just about everyone else’s recommended lists.
Mixed Results
- Some cyclical stocks, such as those in the energy sector, have shown volatile performance, leading to mixed outcomes.
Returns on Investment
To offer a quantitative perspective, let’s consider hypothetical ROI (Return on Investment) based on the Club’s past recommendations
Over the past four years, The Trust has returned 15.14%, while the S&P 500 has returned 12.90%. Thus, the Trust has outperformed the S&P 500 by approximately 2.2%. This is not a huge difference considering the Trust holds some of the biggest stocks in the S&P 500.
Club’s Performance Against Market Indices
When compared to major market indices, the Club’s portfolio has demonstrated:
- Slight outperformance against the S&P 500.
- Comparable performance with specialized indices like the NASDAQ Composite.
- A higher degree of volatility, given its diverse investment strategies.
Best Alternatives
If you’re interested in learning more about stock research but feel Jim Cramer’s CNBC Investing Club isn’t right for you, don’t fret. There are many alternatives available.
Motley Fool Stock Advisor
- Why it Stands Out: The Motley Fool Stock Advisor shines with its specific stock recommendations, backed by detailed analysis and a strong track record of performance. This valuable feature aids investors of all levels in identifying potential investment opportunities in the stock market. At a yearly price of $79.99 for the first year, you would get less than 2 months of a CNBC Investing Club Membership (if you purchased a month-to-month membership like I did).
- Returns: +662% since inception in 2002
- Best For: Both novice and experienced investors who appreciate guidance on stock picks and investment strategies
- Pros: Provides specific stock recommendations, offers in-depth reports, and a solid track record of performance.
- Cons: Requires a subscription; not all recommended stocks may suit every investor.
- Price: $99/year
- Current Promotions: $99 for the first year
Read our complete Motley Fool Stock Advisor Review.
Alpha Picks by Seeking Alpha
- Why it Stands Out: Alpha Picks subscribers get 2 monthly stock picks selected by their in-house investment team. The investment team is run by former hedge fund manager Steven Cress. So far, the portfolio’s performance has been stellar – returning approximately 127% vs 49% for the S&P 500 as of this writing.
- Returns: 127% since 2022
- Best For: Buy and hold investors, capital-appreciation-oriented investors
- Pros: Outperformed S&P 500 3X, Community Engagement
- Cons: Limited track record, No skin in the game, Requires familiarity with Seeking Alpha Rating System.
- Price: $449/year
Read our complete Alpha Picks Review.
Final Thoughts
Getting real-time, actionable insights from Jim and his team is certainly appealing. Not only are they putting their money where their mouth is, but they also provide helpful daily and monthly commentary to help you make more educated investing decisions.
That said, a monthly price of $49.99 is certainly steep compared to some alternatives; coupled with a lack of personalization and limited investor tools, your money could probably be spent on a more insightful investment newsletter.
Frequently Asked Questions
Is CNBC Investing Club the same as Action Alerts Plus?
No, it’s not the same. Jim Cramer is no longer associated with Action Alerts Plus. In 2021, Jim left the company and is no longer associated with AAP. While the branding and the way information is provided may be similar, they are not the same.
What’s the difference between CNBC PRO and CNBC Investing Club?
CNBC Pro offers stock picks and expert insights, CNBC Pro subscribers do not have access to CNBC Investing Club through their PRO subscription. However, if you are already an investing club member, you can gain access to CNBC Pro for less than $6 per week.
Is CNBC Investing Club Worth It?
It depends. If you want to learn about investing and the markets, get some unique trade ideas, and being entertained along the way, then, yes, CNBC Investing Club is worth it.
Review Methodology
Investing in the right financial products is crucial for achieving your financial goals. That’s why our review methodology is designed to give you a comprehensive understanding of various investing platforms and tools. Here’s a breakdown of what we focus on:
Tools and Features
We dig deep into the suite of tools that each platform offers. Whether it’s automated investment features, tax optimization, or specialized charting tools, we evaluate how these features contribute to smarter investing decisions. We ask questions like:
- What is its main offering, and how does it compare to its peers?
- How effective are the risk assessment tools?
- Are there any value-added services like educational content?
Price and Value
Price matters, especially when it comes to investing, where every penny counts. We analyze:
- Subscription fees
- Hidden Charges
- Price compared to the overall value received
We’ll let you know if the platform gives you the most bang for your buck.
Ease of Use
User experience can make or break an investment platform. We assess:
- Interface Design – Is it intuitive and easy to use?
- Mobile app availability and functionality
- Customer Support – where applicable.
Nobody wants to navigate a clunky interface when dealing with their hard-earned money.
Stock Analysis
Good investing is rooted in great research. We examine:
- Risk and Return analysis
- The quality of stock analysis tools
- Availability of real-time data
- Depth of research reports
We check if the platform provides actionable insights to make informed decisions.
How We Do It
- Hands-On Testing: We sign up for accounts and put the platform to the test. This is how we give our nuanced opinion.
- Customer Reviews: What are other users saying? We look at reviews and customer feedback to gauge public opinion.
- Comparative Analysis: Finally, we compare each platform against competitors in terms of features, pricing, and user experience.
We take a comprehensive approach so that you don’t have to.
By sticking to this methodology, we aim to guide you toward investment tools that align with your financial objectives. Happy investing!
Why You Should Trust Us
Our reviews are unbiased and data-driven. While we may receive a commission if you purchase a product through our link, it does not impact our editorial integrity. In addition, all articles are independently reviewed by individuals who have extensive experience in the investing and personal finance space. Lastly, for further validation, we often refer to authoritative financial sources like Morningstar, The Wall Street Journal, and Kiplingers, to name a few.
