Jim Cramer: The Man, The Myth, The Money

What's the Scoop on Jim Cramer's Net Worth and Salary?

Let me tell you about Jim Cramer. This guy is not just your average Joe; he’s a television personality, a best-selling author, and a former hedge fund manager with a staggering net worth of $150 million. Yeah, you heard me right—150 million bucks. Jim Cramer is probably best known as the host of CNBC's "Mad Money" and the co-founder and chairman of TheStreet.com. He pulls in an annual salary of $5 million just from his various gigs at CNBC. But here’s the kicker—he also makes a pretty penny from book royalties and advances. This guy knows how to monetize his knowledge and passion.

Back in the day, Cramer ran a hedge fund called Cramer Berkowitz from 1987 to 2001. It wasn’t small potatoes either—at its peak, the fund managed $450 million in assets. That’s a lot of moolah! And guess what? It produced an average annual return of 24%. In 2005, Cramer told BusinessWeek that his net worth was in the $50 to $100 million range. Not bad for a guy who started out selling Coca-Cola and ice cream at baseball games.

Now, let’s rewind to the dot-com bubble era. Back in 1999, when TheStreet.com went public, the company had a market cap of $1.7 billion. Cramer owned 15% of the company, which meant his stake was worth a cool $255 million. Fast forward to 2005, after the dot-com crash, and that same stake was worth around $15 million. But hey, $15 million isn’t exactly chump change either.

Read also:

Celebrity Power How Stars Are Transforming The World Of Crypto Gambling

Early Life and Career Beginnings

James J. Cramer, or as we know him, Jim Cramer, was born in Wyndmoor, a suburb of Philadelphia, Pennsylvania, on February 10, 1955, to a Jewish family. His mom, Louise A. Cramer, was an artist, and his dad, Ken Cramer, owned International Packaging Products—a company that sold stuff like wrapping paper and boxes to retailers and restaurants. Jim wasn’t just a book-smart kid; he worked hard from a young age, selling Coca-Cola and ice cream at Veterans Stadium during Philadelphia Phillies baseball games in the early 1970s.

Jim attended Springfield Township High School and later went on to Harvard College, where he studied government. He graduated magna cum laude in 1977 with a Bachelor of Arts degree. While at Harvard, he was heavily involved in The Harvard Crimson, serving as its President and Editor-in-Chief. Talk about multitasking!

After graduating, Jim landed a job as an entry-level reporter at the Tallahassee Democrat in Tallahassee, Florida. He even covered the Ted Bundy murders because he lived just a few blocks away. Talk about being in the right—or wrong—place at the right time. He also worked for publications like the Los Angeles Herald-Examiner and American Lawyer and even worked for the Governor of California, Jerry Brown. Eventually, he returned to Harvard to attend law school. While he was there, he invested in the stock market and used the money he made from trading to pay for his tuition. Smart move, right?

Goldman Sachs

After graduating from Harvard Law in 1984, Cramer joined Goldman Sachs as a stockbroker. Now, here’s a twist—he was admitted to the New York State Bar Association in 1985 but never actually practiced law. In fact, his license to practice law in New York was suspended in 2009 because he didn’t pay the registration fee. Sometimes life takes unexpected turns, huh?

Cramer, Berkowitz & Co.

In 1987, Cramer left Goldman Sachs to start his own hedge fund, Cramer & Co., which later became Cramer, Berkowitz & Co. He raised $450 million in $5 million increments and took a 20% fee of the profits he generated. Some of his early investors included heavyweights like Steve Brill, Eliot Spitzer, and Martin Peretz. In 2001, he retired from the hedge fund, and his former partner, Jeff Berkowitz, took over. Cramer claims that from 1988 to 2000, he only had one year of negative returns—in 1998. He also boasts that over 14 years, he produced a 24% average annual return. Of course, some of his results and claims have been debated, but you can’t deny the guy’s got guts.

Smart Money and TheStreet.com

Jim wasn’t done yet. He worked on SmartMoney magazine as the “editor at large.” However, he faced accusations of unethical practices when he made a $2 million personal gain by buying stocks just before an article with his recommendations was published. Oof, that’s a tough one. In 1996, Cramer and Martin Peretz launched TheStreet.com, a financial news and literacy website. In 2019, the website was sold to TheMaven for $16.5 million. Not bad for a side hustle, right?

Read also:

Level Up Your Streaming A Guide To Building A Thriving Gaming Channel

CNBC

During the late 1990s, Cramer became a regular guest commentator on CNBC. Eventually, he landed his own show, "Kudlow & Cramer," with Larry Kudlow, which aired from 2002 to 2005. But the big break came with "Mad Money with Jim Cramer," which premiered on CNBC in 2005. The show is all about giving viewers the tools and knowledge to become better investors. Here’s the deal: Cramer has to disclose any stock positions he holds and isn’t allowed to trade anything he discusses on the show for five days after each broadcast. The show was inspired by his one-hour radio show, "Jim Cramer's Real Money," which ended in December 2006.

Books

Cramer’s not just about stocks and TV; he’s also a prolific writer. He’s authored several books, including "Confessions of a Street Addict" (2002), "You Got Screwed! Why Wall Street Tanked and How You Can Prosper" (2002), "Jim Cramer's Real 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), "Jim Cramer's Getting Back to Even" (2009), and "Jim Cramer's Get Rich Carefully" (2013). This guy keeps the words flowing as much as the money!

Personal Life

Cramer was married to Karen Backfisch from 1988 to 2009, and they have two children together. In 2015, he tied the knot again with Lisa Cadette Detwiler, a real estate broker and general manager of the New York City restaurant The Longshoreman. As for his properties, he owns the DeBary Inn in Summit, New Jersey, and Bar San Miguel, a restaurant and bar in Carroll Gardens, Brooklyn, which he co-owns with his wife. He lives in Summit, New Jersey, and also owns private residential properties in Quogue, New York, and a 65-acre estate in New Jersey. Oh, and let’s not forget—he’s a die-hard Philadelphia Eagles fan. He’s held season tickets for over 20 years!

Real Estate

In 1999, Jim and Karen paid $2.375 million for a 100+-year-old home on 1.33 acres in Summit, New Jersey. As part of their divorce settlement, Jim sold the house to Karen for $1. Karen later sold the house in April 2019 for $3.675 million. Not a bad return on investment, right? In 2008, Jim paid $4.7 million for another home in Summit, New Jersey. He also owns a 65-acre estate elsewhere in New Jersey. This guy knows how to invest in real estate as well as stocks!