Jim Cramer, the host of Mad Money, on Tuesday, explained how investors can use broad market pullbacks to their advantage.
“If you want to put money in the market via an index fund, you can, and you should put money in monthly. But if you get a sell-off like this one, you’ve got my blessing to pull forward some of those future contributions and put them to work right now, perhaps even as early as tomorrow.”
READ ALSO Jim Cramer’s Thoughts on These 17 Stocks and Jim Cramer Laid Out This Week’s Game Plan: 12 Stocks in Focus
Cramer explained that he is spending time talking about taking small steps, spreading purchases out, and leaving a gap between each one, because in his book, he recommends building a starter portfolio of five names. He said one should be speculative and the rest should be high-quality companies.
Cramer added that some diversification helps, though it does not have to be perfect, and suggested avoiding having more than two holdings that are closely alike. He also repeated his long-held view that it is worth keeping some money in an index fund alongside individual stocks. He explained that index funds are good, but he cautioned that they are not everything.
“The bottom line, though: In a market like this, my favorite move is to buy small, something out of favor that’s way down from its highs. Ideally, something that just reported a stellar quarter and is getting zero credit for it. Now, that’s a sale worth attending, if not nibbling outright to get started, as you never know if the market’s done going down and you have to leave room to be able to buy plenty more if we get additional weakness. That’s my method. That’s what I’m sharing with you.”
Our Methodology
For this article, we compiled a list of 15 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on November 18. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the second quarter of 2025, which was taken from Insider Monkey’s database of over 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Jim Cramer Put These 15 Stocks Under the Spotlight
15. Rockwell Automation, Inc. (NYSE:ROK)
Number of Hedge Fund Holders: 49
Rockwell Automation, Inc. (NYSE:ROK) is one of the stocks Jim Cramer put under the spotlight. Cramer had some positive things to say about the company, as he commented:
“It doesn’t get as much attention as artificial intelligence, but there’s another big, profitable theme this year, and that’s the reindustrialization of America. It’s about bringing companies… getting their manufacturing back here in the US, probably because it’s cheaper than dealing with some of these tariffs. Of course, if you’re going to manufacture in America, you don’t want to necessarily pay American wages.
So these companies embrace automation, which brings me to Rockwell Automation, the Wisconsin-based company that dominates the US market for what are called programmable logic controllers, basically industrial computers that are the brains of manufacturing operations. They also have a whole suite of software to help factories run more efficiently. Rockwell’s had a great year in 2025. And earlier this month, management gave some strong guidance for 2026, talking about 10% earnings growth at the midpoint of their forecast. No wonder the stock’s up 28% for the year. Can it keep running? I think it can.”
Rockwell Automation, Inc. (NYSE:ROK) provides industrial automation and digital transformation technologies, including devices, control systems, software, engineered solutions, and many other support services.
14. Starwood Property Trust, Inc. (NYSE:STWD)
Number of Hedge Fund Holders: 25
Starwood Property Trust, Inc. (NYSE:STWD) is one of the stocks Jim Cramer put under the spotlight. A caller asked if they should buy, sell, or hold the stock, and Cramer replied:
“You’re dealing with Barry Sternlicht, who’s a very smart person, who has dealt with all sorts of bad markets and has come up fine. I am loath to abandon it because I think I respect him that much.”
Starwood Property Trust, Inc. (NYSE:STWD) provides real estate credit, property investments, and infrastructure lending, including commercial mortgages, residential loans, equity interests, and commercial mortgage-backed securities-related assets. The company maintains a REIT status. It announced its Q3 earnings on November 10, posting a non-GAAP EPS of $0.40, missing estimates by $0.04.
Starwood Property Trust, Inc.’s (NYSE:STWD) revenue beat the estimates by $9.18 million, generating $489 million. Additionally, it deployed investments worth $4.6 billion in the quarter and $10.2 billion in nine months. The company’s major activities include Triple Net Lease Investments worth $2.2 billion, Commercial Lending worth $1.4 billion, and Infrastructure Lending worth a record $0.8 billion.
