Holy Cost Basis Batman Should You REALLY Buy High?!

Mailbag Mayhem: A Message From the Other Side!

Greetings Earthlings! Ace Ventura: Pet Detective and now *drumroll please*... INVESTIGATIVE JOURNALIST! That's right your favorite animal lover is diving headfirst into the wild world of WALL STREET! I intercepted this transmission from the Jim Cramer Investing Club. Turns out even *they* have questions which is unusual because I thought Jim Cramer was the smartest guy in the room even more than the guy from the pet store that told me I could have a monkey for free! Let's see what's shaking in the investment world shall we?

Violating the Cost Basis: Like Breaking Wind in Church?!

Our first query comes from a concerned citizen named John. He asks 'When if at all should I buy above my cost basis for a stock?' According to Jim Cramer violating your cost basis is like breaking wind in church – generally frowned upon. They preach scaling in gradually diversifying that portfolio like a vibrant rainforest (minus the killer snakes hopefully). But hold your horses! There are exceptions. Like when a company's fundamentals get a super boost and the stock has done a swan dive or rebuilding a position when you sold high but you just want more. Even the Club itself violated its own rules by buying more Amazon! "We're willing to violate our basis here because of how much the stock has fallen in such a short period of time," said Jeff Marks.

Cash is King (or Queen): Show me the Money!

Next up Neil wants to know how much cash we should be hoarding. Like a squirrel with nuts for the winter. The Investing Club likes to keep 5% to 10% cash on hand but they sometimes go rogue. Cash is your best friend when high quality companies are "on sale" – think of it as a clearance rack but for stocks! Now everyone's financial situation is different. If you're a nervous Nelly with low risk tolerance then you should keep more cash. But if you're like me living on the edge with a rhino tranquilizer dart in your pocket you might be more open to adventure.

Dividend Dilemmas: Shiny Pennies or Fool's Gold?!

Finally Charles is scratching his head about stocks that appreciate but don't pay dividends. He says buybacks are useless for retirees who need income. Well Charles dividends are like sprinkles on an ice cream cone – nice but not essential. High yield dividends can be a TRAP! Sometimes they're a sign that the company is circling the drain. Jim says profits don't count until you've rung the register. The Club has some dividend paying stocks like Bristol Myers Squibb Coterra Energy Starbucks DuPont and Home Depot. But you gotta look at the whole picture Charles. Don't put all your eggs in one basket or you'll end up with egg on your face!

Trading Like a Pro (or At Least Trying To):

Want to trade like the pros? With the CNBC Investing Club you get trade alerts before Jim Cramer pulls the trigger (after waiting 45 minutes of course to be nice). And if Jim blabs about a stock on TV he waits 72 hours before executing the trade. So there you have it! A glimpse into the sometimes strange sometimes sensible world of investing. Remember kids: invest responsibly don't put your faith in pigeon poop and ALWAYS follow your instincts... unless they tell you to wear a tutu to a board meeting.

Alrighty Then Wrapping Up!

Alrighty then that's the lowdown from the Investing Club served with a heaping side of Ace Ventura flair. Now if you'll excuse me I have a missing chihuahua to find. Hasta la vista... baby!