He co-founded TheStreet.com and hosts CNBC’s “Mad Money.” Jim Cramer makes $5 million a year at CNBC. He also gets book advances and royalties.
From 1987 to 2001, Cramer ran Cramer Berkowitz. The fund once controlled $450 million. It averaged 24% annually. BusinessWeek reported Cramer’s 2005 net worth was $50 to $100 million.
Cramer’s net worth was higher during the dot-com bubble since he owned 15% of TheStreet.com. After going public in 1999, TheStreet.com had a $1.7 billion market valuation. Cramer’s 15% stake was worth $255 million. This share was worth $15 million after the dotcom crash of 2005.
Early Career Years
Jim Cramer was born to a Jewish household in Pennsylvania on February 10, 1955. (a suburb of Philadelphia). His father, Ken Cramer, owned International Packaging Products, which sold packaging to retailers and restaurants. His mother was a painter.
In the early 1970s, Cramer sold Coca-Cola and ice cream at Philadelphia Phillies games. He graduated from Springfield Township High School and studied government at Harvard. He graduated from Harvard with honours in 1977. He was president and editor-in-chief of The Harvard Crimson as a student.
After college, Cramer was hired as a reporter at the Tallahassee Democrat. He was one of the first to cover the Ted Bundy murders because he lived nearby. He worked for the Los Angeles Herald-Examiner, American Lawyer, and Governor Jerry Brown. He finished law school at Harvard. As a law student, he traded stocks to pay for his tuition.
After getting a Harvard law degree, Cramer became a stockbroker at Goldman Sachs. He didn’t practise law after joining the NYSBA in 1985. Failure to pay the registration fee barred him from practising law in New York in 2009.
Cramer & Co.
Cramer left Goldman Sachs to start Cramer & Co. in 1987. (later to be known as Cramer, Berkowitz & Co.). He raised $450 million in $5 million increments for a 20 percent fee. First investors included Martin Peretz, Steve Brill, and Eliot Spitzer.
Jeff Berkowitz, a former business partner, took over in 2001. Cramer’s only bad year from 1988-2000 was 1998. He claims he earned 24% annually over 14 years. His results and conclusions have been disputed.
Smart Money, TheStreet.com
Cramer was “editor at large” at SmartMoney magazine. When he made $2 million buying stocks before an article with his recommendations was published, he was accused of unethical behaviour. Cramer and Martin Peretz created the website TheStreet.com in 1996. In 2019, TheMaven paid $16.5 million for the website.
Cramer was a late-1990s CNBC guest pundit. “Kudlow & Cramer” lasted from 2002 to 2005. Later, he joined CNBC’s “Mad Money” in 2005. The show helps viewers become better investors.
As a condition of his participation, Cramer must declare any stock positions he holds. Five days following each broadcast, he can’t trade anything he’s mentioned on the show. “Jim Cramer’s Real Money,” which ended in 2006, inspired “Mad Money.”
Cramer published several books. You Got Screwed! (2002), Confessions of a Street Addict, and “Jim Cramer’s True Money: Sane Investing in an Insane World” (2005), “Jim Cramer’s Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)” (2007), and “Jim Cramer’s Get Rich Carefully” are some of his books (2013).
Cramer married Karen Backfisch from 1988 till 2009. Two kids are theirs. He marries Lisa Cadette Detwiler, a real estate broker and restaurant manager in NYC. They married in April 2015. In 2009, he and four partners bought the DeBary Inn in Summit, New Jersey.
His wife and he operate Bar San Miguel in Carroll Gardens, Brooklyn. He has homes in Summit, New Jersey, Quogue, New York, and the New Jersey countryside. Cramer loves the Philadelphia Eagles. He’s had season tickets for 20 years.
In 1999, Jim and Karen paid $2.375 million for a 100-year-old house in Summit, New Jersey. In their divorce settlement, Jim sold Karen the house for $1. Karen’s home sold for $3.675 million in April 2019.
Jim spent $4.7 million on a Summit, NJ, home in 2008. He owns a 65-acre home in New Jersey.
Jim Cramer, a TV personality, author, and former hedge fund manager, has $150 million.