CNBC’s Jim Cramer, host of Mad Money, proposed his investment strategy to the Powerball winner who won $731.1 million
After Wednesday’s drawing, the identity of the jackpot winner remains undisclosed; it is known that the ticket was bought at a small shop in Maryland. Maryland is one of the few states where winners remain anonymous.
Kramer says the sixth-largest lottery prize in history puts its holder in a strong position, and he sees no need to take investment risks. Yet for the wealthy, inflation—particularly hyperinflation—is a concern, the host added.
As one measure to preserve wealth, Kramer proposed investing 5% in the leading cryptocurrency. He also advised not to buy Bitcoin with the entire amount at once, and to do so on weekends.
“This is an important new store of value,” said the former hedge fund manager.
He identified assets hedging against hyperinflation—precious metals, real estate, and fine art—and urged placing 5% of the winnings in them. In his view, no more than 20% of the wealth should be allocated to the stock market.
The CNBC host owns some amount of the first cryptocurrency, which bought when the price was below $18,000. According to him, digital assets do not form a large part of his portfolio.
Earlier, an Illinois resident invested half of the lottery winnings, amounting to $500,000, in Bitcoin. He bought the cryptocurrency in May 2019 and planned to leave the assets untouched for at least a year.
On January 8, 2021, the price of Bitcoin reached a new all-time high.
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