A popular host at CNBC shows, Jim Cramer, is renowned for a lot of things, including his multimillion-dollar net worth. The American’s net worth has, over the years, increased in wholesome figures to approximately $150 million through time as a hedge fund manager, up until he became a full-fledged TV presenter.
Jim Cramer is enthusiastic about teaching young investors how to think like market movers through CNBC’s “Mad Money” TV show. Consequently, the Mad Money host has been a Wall Street mainstay since the 80s.
All these ventures have had a great impact on Jim Cramer’s net worth, accumulating to the gigantic figure that it is today. So, who is Jim Cramer and what is Jim Cramer’s net worth? In this article, we’ll find out how Jim Cramer transitioned from an ice cream seller to a multimillionaire.
Who is Jim Cramer?
The American millionaire, James Jim Cramer (@jimcramer), was born in a suburb of Philadelphia, specifically in Wyndmoor, Pennsylvania. Born on February 10, 1955, to Ken and Louise Cramer, Jim was surrounded by innovative Jewish minds. His mother was a talented artist while his father owned a company that wrapped paper, boxes, and bags for packaging products.
Growing up, Jim attended Springfield Township High School and developed a stern interest in mass communication and law. He furthered his education by attending Havard University, where he earned a Bachelor of Arts degree, graduating magna cum laude. Later on, he joined Havard Law School, graduating with a Juris Doctor degree in 1984.
How Did Jim Cramer Make His Money?
Jim Cramer’s major turning point began when he became the Editor in Chief of the Havard Crimson in college. He sold ice cream at Veterans Stadium before working as a reporter in 1978. Coming from humble beginnings, Jim had to sponsor his education by working in different sectors. He delved into stock market investment and promoted his stock picks while in law school.
Jim Cramer became a guru at stock marketing and he soon landed a stockbroker job with Goldman Sachs, though he stayed for just three years. After leaving the investment banking job offered by Goldman Sachs, Jim leveraged his experience in stock marketing and established his hedge fund company, Cramer & Co. in 1987. This helped to improve Jim Cramer’s net worth, paving the way for new investments and money-making ideas.
Aside from Cramer & Co. and “Mad Money with Jim Cramer“, the American TV presenter also gained cool dollar bills by hosting and participating in other programs. Jim Cramer also generates income from paid speaking appearances in both physical and virtual conferences. His appearance in programs—where he gives insight into money investments—does not come cheap. Knowledge is expensive, haha.
Reports claim that Jim Cramer charges between $30,000 to $50,000 per speech, and that is a big boost for his immense net worth. Like that was not enough, recent publications peg Jim’s earnings through public speeches at $75,000 or more.
What is Jim Cramer’s Net Worth Today?
The exact figures of Jim Cramer’s net worth are subject to debate and all publications can only give the nearest estimate. However, Jim Cramer has a total estimated net worth of $150 million—a feat he reached in 2022. Jim Cramer’s net worth is an appraisal of his money-making strategy which involves diversifying into numerous sectors.
The bulk of Jim Cramer’s net worth came during his spell as a hedge fund manager. Cramer & Co. was a massive success under Jim Cramer’s management between 1987 and 2000. Cramer & Co. invested on its terms and made high ROI annually. Jim’s hedge fund got monetary support from the investments of other rich individuals, such as Marty Peretz, as well as several interested companies.
He was able to use hundreds of millions of dollars entrusted to him by these individuals and companies to make more millions, accruing his net worth. Reports claim that Cramer & Co. returned an average of 24% annually (over $10 million per year) throughout Jim’s managerial years. Also, Cramer claimed to have a net worth of around $50 to $100 million in 2005, the majority of it coming from the earnings at Cramer & Co.
In 1996, however, Jim Cramer co-founded TheStreet.com—a website that assists investors with commentaries and advice on the stock market. The company reached a market cap of about $1.7 billion at one point, bolstering the net worth of its owners, including Jim Cramer.
How Much Money Does Jim Cramer Make at CNBC?
Jim Cramer’s net worth has also benefited from his connection with the popular TV platform, CNBC. The American millionaire landed gigs as a commentator and presenter on CNBC shows during the late 1990s up to date. He gained more popularity after landing the “Kudlow & Cramer” show in 2002 and began his current “Mad Money with Jim Cramer” in 2005.
According to multiple sources, CNBC pays Jim Cramer an estimated $5 million per year for his services. However, a recent publication pegs his salary even higher at about $12 million annually. This has been a steady source of income for the American businessman and it surely adds up to his jaw-dropping $150 million net worth.
Has Jim Cramer Written Any Book On Investments?
As stated earlier, the American stock market guru enjoys sharing his knowledge on money and investing with aspiring minds. Just as he did with most of his TV shows, Jim Cramer also wrote several books to advise and motivate investors around the world.
They include Confessions of a Street Addict (2002), Jim Cramer’s Mad Money: Watch TV, Get Rich (2006), Jim Cramer’s Get Rich Carefully (2013), Jim Cramer’s Real Money: Sane Investing in an Insane World (2005), You Got Screwed, Stay Mad For Life, and many more. The massive sales of these books have also contributed to improving the wealth status of the American investor, fetching him thousands of dollars per year.
Does Jim Cramer Still Own Personal Stocks?
Unfortunately, Jim Cramer does not currently own any stock due to potential conflicts of interest. Once before, while writing for “SmartMoney”, Jim received criticisms over market recommendations he gave to his readers. Jim gained a sizable amount from this stock because lots of investors placed buy orders on it as a result of his recommendations.
Due to this, Jim decided to avoid personal stocks since he discusses most of them in his shows on CNBC. Instead, according to multiple reports, Jim Cramer keeps 50% of his portfolio in cash, 40% in broad-market index funds, and the remaining 10% in gold and cryptocurrency exchange.
Rather than own individual stocks, Jim Cramer created a portfolio for charity. He established the Charitable Trust Portfolio in 2005 so he could trade stocks based on his opinions. This helps him avoid criticisms, especially as all the gains from traded stocks on this platform go into charity.
