Jim Cramer, host of Mad Money, recently shared some investment wisdom drawn from his four decades of experience. One of the key lessons he emphasized during the show was the importance of discipline in investing. Cramer was firm on this principle, saying that no matter how much someone may love a stock or be captivated by its story, if the rules dictate that it’s time to sell, then it’s time to sell. He reminded his audience that discipline is more important than sheer conviction when it comes to managing investments.

“We’re gonna start with the first one, which is bulls make money. Bears make money. Pigs, well, they get slaughtered. Look, I say this all the time… because so often in my business, I’ve seen moments where stocks went up and up and up so much that people were intoxicated with their gains… However, it’s precisely at that point of intoxication that you need to remind yourself that you don’t want to act like a pig.”

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Cramer also stressed that one of the toughest aspects of investing is simply enduring the ups and downs of the market.

“You know that’s the hardest part of investing. It’s holding on through the difficult periods, taking short-term pains so you can have long-term gains, which is what’s happened in the stock market for a century.”

The next rule Cramer shared revolves around the fear of paying taxes on stock market gains. He pointed out that many investors develop a near-obsessive aversion to paying taxes and often avoid taking profits because they don’t want to incur tax liabilities. However, Cramer argued that it’s perfectly okay to pay taxes if it means securing gains.

Lastly, Cramer advised against buying or selling a stock all at once. He recommended spreading purchases over time in stages, as this approach accounts for the potential fallibility of judgment and helps secure the best price.

“… My next commandment and this is a really important one. Never buy all at once. I can’t stress it enough. Do not, under any circumstances, buy your whole position at once… and you should never sell all at once. Instead, I need you to stage your buys, work your orders, try to get the best price over time.”

Our Methodology

For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episodes of Mad Money. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Jim Cramer Talked About These 8 Stocks

8. Magna International Inc. (NYSE:MGA)

Number of Hedge Fund Holders: 15

When a caller asked about Magna International Inc. (NYSE:MGA), Cramer noted that the auto industry is the wrong place to be these days.

“Oh, I gotta tell you, the autos are the worst place to be. I mean, there are two economies. There’s the auto and housing economy, then there’s everything else and you’re in the heart of the bad part. I don’t want, I don’t, I would not want to own that stock is the way I would look at. I just would not want to own it. I’m seeing terrible things going on in the auto industry.”

Magna (NYSE:MGA) designs, engineers, and manufactures a wide range of components, assemblies, and systems for vehicle and light truck manufacturers. In the third quarter, the company experienced a 4% decline in global vehicle production, which had an impact on its sales. As a result, its revenue decreased by $408 million, totaling $10.28 billion compared to $10.69 billion in the same period the previous year.

This decline was primarily attributed to reduced global light vehicle production, lower complete vehicle assembly volumes, and other contributing factors. The company has adjusted its expectations for the remainder of 2024, reducing its sales forecast to account for lower production volumes in key markets like North America and Europe.

Alongside this, Magna (NYSE:MGA) revised its projected adjusted EBIT margin to a range of 5.4% to 5.5%. The company’s adjusted net income forecast has also been lowered, with expectations now ranging from $1.45 billion to $1.55 billion, down from a previous estimate of $1.5 billion to $1.7 billion.

7. M&T Bank Corporation (NYSE:MTB)

Number of Hedge Fund Holders: 30

Discussing M&T Bank Corporation (NYSE:MTB), Cramer said he would buy it and expressed a liking for banks.

“MTB is a very, very good company. I would be buying it here, I don’t have a problem with that. I actually like the banks. I’m going against the grain.”

M&T Bank (NYSE:MTB) is a bank holding company that provides a wide range of retail and commercial banking products and services. According to Polaris Capital Management, third quarter 2024 investor letter, the company showed strong performance amidst a backdrop of interest rate cuts, with financials generally benefiting from expectations of increased loan demand and a lower cost of capital.

The bank reported higher net interest margins, driven by solid investment yields and stable deposit and borrowing costs. It also saw growth in commercial and industrial loans, surpassing its competitors, while strategically reducing its commercial real estate exposure. Since the fourth quarter of 2023, the bank has grown its average loan portfolio by nearly $2 billion, while decreasing its commercial real estate (CRE) holdings by over $4 billion, focusing instead on expanding its commercial and industrial (C&I) and consumer loans.

For the fourth quarter, M&T Bank (NYSE:MTB) anticipates taxable equivalent net interest income (NII) of at least $1.73 billion, bringing the full-year NII close to the upper end of its previously provided range. Net interest margin is expected to remain in the low 3.60s. The bank also expects continued loan growth, with average total loans reaching around $136 billion, supported by increases in C&I and consumer loans and a reduction in CRE balances.

6. Royalty Pharma plc (NASDAQ:RPRX)

Number of Hedge Fund Holders: 33

While Cramer expressed disappointment with Royalty Pharma plc (NASDAQ:RPRX), he suggested holding on to the stock.

“Disappointing stock, man, I can’t believe it. Really well run, but disappointing. I don’t know what to say. I don’t know what gets it going. It’s healthcare with a great earning stream and it just doesn’t seem to matter. I want you to stick with it. I would not get rid of the stock here. It’s too good a company.”

Royalty Pharma (NASDAQ:RPRX) specializes in purchasing biopharmaceutical royalties and funding innovations within the industry, focusing on identifying, evaluating, and acquiring royalties for various therapies. Currently, 15 of the products in its portfolio generate over $1 billion in annual sales. The company has remained highly active in acquiring new royalties, and its pipeline continues to show strong potential. As of the third quarter, its capital deployment had reached approximately $2.6 billion.

In the third quarter, the company expanded its portfolio by acquiring royalties on three innovative therapies. This included synthetic royalties for two approved products: Syndax and Incyte’s Niktimvo, which treats chronic graft-versus-host disease, and Ascendis’ Yorvipath, a treatment for hypoparathyroidism. The company’s solid performance over the first nine months of 2024 prompted it to raise its full-year guidance. The strong results were attributed to the growth of its diversified portfolio, which continues to show momentum.

Royalty Pharma (NASDAQ:RPRX) now expects its Portfolio Receipts to range between $2.75 billion and $2.8 billion, an increase from the previous guidance. This update reflects an anticipated growth in Royalty Receipts of around 11% to 13%, surpassing the earlier expectation of 9% to 12%. Royalty receipts represent the company’s recurring cash inflows, which are driven by its high-quality portfolio of over 35 commercial products. Meanwhile, portfolio receipts are an important performance indicator that reflects its capacity to generate cash from portfolio investments.

5. Core Scientific, Inc. (NASDAQ:CORZ)

Number of Hedge Fund Holders: 58

Cramer cautioned care with buying Core Scientific, Inc. (NASDAQ:CORZ) as he explained that it is “losing money”.

“Yeah, I’ll tell you… if you think that today was a seminal market, in other words, that the Fed did something that is gonna make people very nervous, this stock will go down for maybe a couple [of] days. It is very intriguing, but remember, it’s losing money. Losing money stocks will not do well in this newer environment. So let’s be careful before we buy more of that stock.”

Core Scientific (NASDAQ:CORZ) is a North American company that provides digital asset mining services. It also provides electrical power and infrastructure services necessary to support ongoing operations. The company faced significant financial challenges after going public through a Special Purpose Acquisition Company (SPAC) in 2022 and was hit hard by a sharp decline in Bitcoin prices. This led to it entering bankruptcy protection in early 2024.

However, following its emergence from bankruptcy, the company has since adapted to changing market conditions. As companies increasingly focus on AI computation rather than solely on Bitcoin mining, the company’s business model, which emphasizes building application-specific infrastructure for data centers, has positioned it well for this shift.

CEO and President Adam Sullivan noted in an interview with Yahoo Finance that the company’s success in the Bitcoin mining sector for the past three years can be attributed to its unique approach of bringing in professionals from traditional data centers to manage operations, setting it apart from competitors. Earlier in the year, Core Scientific (NASDAQ:CORZ) made a strategic move by signing a deal with CoreWeave, a cloud computing firm, to help expand its artificial intelligence capabilities. This partnership is expected to generate $8.6 billion in revenue over the next 12 years and will involve the development of 500 megawatts of infrastructure.

4. Gilead Sciences, Inc. (NASDAQ:GILD)

Number of Hedge Fund Holders: 59

Cramer said to take profits in Gilead Sciences, Inc. (NASDAQ:GILD) and commented:

“Okay, Gilead Sciences is a company that I think has been, the stock has come back and that’s terrific, but I don’t think the business is worth as much as the stock is selling. I would take profits in that stock tomorrow morning.”

Gilead Sciences (NASDAQ:GILD) is a biopharmaceutical company focused on developing and commercializing innovative medicines. In the third quarter, it reported strong financial results, surpassing analysts’ expectations with a 7% increase in revenue compared to the previous year. This growth was primarily driven by solid sales of its HIV and oncology treatments. The company also made significant progress in its virology and inflammation programs during the quarter.

The company is focused on maintaining its leadership in the HIV treatment market, anticipating the introduction of four new regimens by the end of 2030. Management mentioned that the HIV treatment market is expected to continue growing at a rate of 2 to 3% annually, aligning with the company’s expectations. One key development in the quarter was that the FDA granted breakthrough therapy designation to lenacapavir, an HIV treatment.

If approved, lenacapavir will become the first twice-yearly subcutaneous injection for HIV prevention. The company is on track to file for approval before the end of the year. In addition to its HIV advancements, Gilead Sciences (NASDAQ:GILD) also received FDA-accelerated approval for Livdelzi, a treatment for primary biliary cholangitis, in the third quarter.

This approval brings the total number of innovative therapies launched by Gilead since 2019 to six, marking progress toward the company’s goal of introducing at least 10 transformative therapies by 2030. Furthermore, on December 17, the company announced that the FDA had granted Breakthrough Therapy Designation to Trodelvy for the treatment of extensive-stage small cell lung cancer, further expanding its oncology portfolio.

3. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 88

Cramer mentioned that he likes Walmart Inc. (NYSE:WMT) and remarked:

“I like Walmart… We cannot believe the buys. We love going to Walmart. A lot of the rich guys in New York, they don’t even know what Walmart is. That’s how we got the edge on ’em.”

Walmart (NYSE:WMT) is a leading name in the retail industry, offering a wide variety of products that cater to the diverse needs of consumers. The company has managed to perform well despite the challenges of an inflationary environment, largely due to its strength in groceries and its ability to leverage economies of scale. These advantages allowed it to outperform competitors on price while also passing price increases to its customers. Over the past year, the stock has seen a significant surge, rising by more than 75%.

A key factor in the company’s recent success has been its focus on expanding its digital capabilities. With e-commerce becoming an increasingly important part of the business, it has been able to tap into higher-margin opportunities, such as digital advertising. During the third quarter of fiscal 2025, the company’s advertising revenue grew by 28%, driven in part by a 50% increase in international growth, particularly in India with Flipkart. Walmart Connect, its digital advertising platform, also had a strong quarter, growing by 26%.

Walmart (NYSE:WMT) has also made significant strides in improving its delivery options, positioning itself ahead of its competitors in this area. During the third quarter, delivery sales in the U.S. grew at a faster rate than in-store sales. Store-fulfilled deliveries alone increased by nearly 50%, surpassing a $2.5 billion monthly run rate. The company has now seen 12 consecutive months of deliveries exceeding $2 billion.

2. Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 91

Discussing Oracle Corporation (NYSE:ORCL), Cramer said:

“Okay, remember, we don’t care where [the] stock has come from, we care where it’s going to. Unfortunately, I do think after that last quarter, the stocks that do not make the quarter are being punished here and will continue to be punished until we get better news. So Oracle does go lower in my opinion.”

Oracle (NYSE:ORCL) is a global technology company that offers a comprehensive range of enterprise IT solutions. However, it faced challenges in its fiscal 2025 second-quarter results, which caused its stock to decline. The company reported results that fell short of analyst expectations and provided more cautious guidance moving forward. Despite this, the company’s cloud infrastructure business continues to show strong growth.

In the second quarter of fiscal 2025, the company reported a significant 336% increase in GPU usage compared to the previous year. This surge highlights the growing demand for artificial intelligence infrastructure. The company has plans to build an additional 1,000 to 2,000 data centers over the long term.

During the quarter, Oracle (NYSE:ORCL) unveiled its largest-ever supercomputer, equipped with 65,000 Nvidia GPUs. It is noteworthy that the company has significantly increased its capital expenditures, which rose to $4 billion in fiscal Q2 from $2.3 billion in fiscal Q1. However, the company also faced some financial challenges. It reported an operating cash flow of just $1.3 billion and experienced a negative free cash flow of $2.7 billion.

1. Uber Technologies, Inc. (NYSE:UBER)

Number of Hedge Fund Holders: 136

A caller noted that Uber Technologies, Inc. (NYSE:UBER) has been down and Cramer said:

“It is discouraging and I find that Uber, I personally think that a lot of it’s the chart, it looks like a terrible chart… People right now have decided that these companies are gonna get hurt by ride-sharing. I don’t believe that. I think that Uber’s attractive and it’s come down a lot and I do like it.”

Uber (NYSE:UBER) is a global leader in technology-driven mobility, delivery, and freight services, providing consumers with access to a range of transportation options and facilitating deliveries from various retailers. Despite facing recent challenges, including a pullback in stock value due to cautious near-term guidance and an ongoing Federal Trade Commission investigation into its Uber One subscription service, the company continues to see significant opportunities for growth.

The company has seen stronger growth in less dense areas, such as the suburbs and secondary cities, compared to core urban centers, particularly in Mobility and Delivery. The company started focusing on these areas with Delivery, where non-core cities make up the majority of the market and are growing faster than city centers. Management highlighted that this strategy is now expanding globally, and Uber sees significant growth potential in these less dense areas, which could drive growth for the core business in the next few years.

Additionally, Uber (NYSE:UBER) is working to increase user frequency, particularly through its Uber One membership program. As of the third quarter, over 25 million people have subscribed to Uber One, a 70% increase year on year. Members of the service also show significantly higher retention rates and tend to spend three times more than non-members.

More than 7.8 million people, including drivers, delivery workers, and shoppers, actively engage with its platform, further solidifying the company’s position as a key player in the transportation and logistics sectors.

While we acknowledge the potential of Uber Technologies, Inc. (NYSE:UBER) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than UBER but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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