CNBC host Jim Cramer has been urging young investors to put their money in individual stocks instead of limiting themselves to index funds if they want to earn substantial profits. He said in a recent program that he is not against "wise" speculation in stock picking, as it can deliver investors outsized gains.
"Speculation itself is not bad," Cramer said. "I actually encourage speculation, especially for young people. You can have one [speculative stock] when you’re older, north of 25, say, and two out of five if you’re even younger than that. A solid speculative pick can change your entire life."
