Jim Cramer is the host of the popular show “Mad Money” on CNBC, a program known more for Cramer’s outlandish antics than his actually investing advice. In fact, within established and successful investing organizations, Cramer is treated as more of an entertainer than an investing guru.
Regardless of his history, a recent CNBC article did point out Cramer’s new move that was rather interesting, and should be taken note. According to Cramer, “Small businesses are off the radar because, well, they’re small. Professional money managers care about big business and medium business, but small business is outside their area of expertise. And that’s why they’re so easy to miss,”
An interesting opportunity if there ever was one. The truth is, Wall Street behemoths like JP Morgan Chase, Citigroup, and Goldman Sachs make so much money investing in large and medium sized businesses, there is no reason to look at small firms. They’re literally not worth their time.
This means that, if a company was created that focused on investment opportunities affecting small businesses, there may be room for a new billion dollar player.
Cramer suggestions for companies to invest in include HD Supply, “a catch-all industrial play that provides roughly 500,000 business customers with repairs, infrastructure and other business-facing products and services” as well as the online market Etsy and payments processor Square
“Etsy’s so popular they raised their cut from 3.5 percent of each transaction to 5 [percent and] nobody batted an eyelash,” Cramer said when explaining that online market has “1.9 million sellers creating handmade items and selling them to 33 million buyers.”
These are good (and obvious) picks but if a company can invest in the not so obvious companies, Cramer may be lighting a fire on an idea that could be worth a lot of money in today’s market.