Cramer rejects Buffett’s stance on stock picking and advocates a hybrid investment model

CNBC’s Jim Cramer on Monday denied Warren Buffett’s claim that Wall Street’s new retail investors are shying away from individual stock picking to invest in index funds.

“I respect Warren Buffett, but I’ll always be the Peter Lynch type,” Cramer told Mad Money, responding to comments from the chairman and CEO of Berkshire Hathaway. Cramer endorses the investment philosophy of Lynch, the legendary investor best known for his management of Fidelity’s Magellan Fund and his book on investing, One Up on Wall Street.

Lynch’s philosophy is based on an investor using their ability to watch, study, and take action on a stock, Cramer said.

“That’s why I believe in a hybrid. I don’t share Buffett’s disdain for home gamers trying to pick stocks, nor do I want you to go all-in on individual stocks,” he said.

Cramer provided investors with a list of retail stock ideas to test the principles of Lynch.

“I don’t want it to sound easy. If you want to invest like Peter Lynch, you have to actually visit these places or try things on, whatever piques your curiosity,” said Cramer, suggesting that viewers read Lynch’s book. “But I think a game or two of these reopening games will go well with an index fund in your retirement account.”

A Berkshire Hathaway spokesman did not immediately return a request for comment.

Disclosure: Cramer’s charitable foundation owns shares in Walmart and Costco.

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