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Cramer rejects Buffett’s stance on stock picking, endorses a hybrid investing model

CNBC’s Jim Cramer on Monday rejected Warren Buffett’s confirmation that Wall Street’s new retail investors stay away from individual stock picking in favor of seating in index funds.

“I respect Warren Buffett, but I’ll always be a Peter Lynch guy,” Cramer said on “Mad Money,” reacting to the observes from the Berkshire Hathaway chairman and CEO. Cramer favors the investment philosophy of Lynch, the legendary investor known for his operation of Fidelity’s Magellan Fund and his book on investing, “One Up on Wall Street.”

Lynch’s philosophy is based on an investor taking benefit of his or her ability to observe, study and take action on a stock, Cramer said.

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

Cramer provided a slate of retail stock ideas for investors to test Lynch’s principles.

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

A spokesperson for Berkshire Hathaway did not immediately return a request for say discuss.

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


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