During a recent episode of Mad Money, which aired on Friday, the 9th of May, Jim Cramer urged investors to stop chasing hot stocks blindly and instead start with the most fundamental question of all: what are you investing for?
“Far too often people will invest in the stock market with the simple poorly defined goal of making money. That’s right. Poorly defined goal. Yeah, we all want to make money. I want it. You want it. But how quickly do you want that return? What are you willing to risk in order to get there? How much can you even afford to risk in the first place?”
READ ALSO: Jim Cramer Nailed These 12 Stock Predictions and 13 Stock Predictions That Jim Cramer Got Completely Wrong.
He stressed the importance of matching your stock choices to your actual financial goals such as retirement, home purchase, and college tuition, rather than treating all money as interchangeable. This, he explained, is the cornerstone of suitability:
“You simply can’t know which stocks you should buy if you haven’t taken the time to really consider what your objectives are. That’s the foundation of good investing judgment.”
Cramer closed the segment by reminding viewers that even though the U.S. remains one of the best markets for long-term growth, discipline must come before stock picking:
“America remains a growth country… But please get to know yourself before you jump down the rabbit hole of getting to know individual companies.”
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during Mad Money episodes that aired on the 7th and 8th of May 2024. We then calculated their performance for the past 12 months, until May 7th, 2025, market close. We have also included the hedge fund sentiment for the stocks, which we sourced from Insider Monkey’s Q4 2024 database of over 900 hedge funds. The stocks are listed in the order that Cramer mentioned them.
Please note that this article mentions Jim Cramer’s previous opinions and may not account for any changes to his opinions regarding the stocks that are mentioned. It is primarily an examination of how his previously provided opinions have panned out.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
9. Nike, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 73
In that older episode, Cramer was asked about Nike, Inc. (NYSE:NKE) in the context of its prolonged stock decline and whether it could be a candidate to acquire Lululemon. He dismissed the acquisition idea but gave a favorable view on Nike’s valuation at the time, saying:
“Lululemon’s still expensive and I know they want to stay independent. You know, it’s kind of an interesting idea—in a kind of a perfect world, that would happen. But we’re not in a perfect world. In the world we are in, though, I think Nike is very cheap. How about that?”
Cramer’s prediction was a miss, with Nike shares sliding another 37.49% since then.
However, Cramer expressed his worries about Nike, Inc. (NYSE:NKE) more recently, highlighting the company’s risks due to tariffs and US-China trade relations. Here’s what he said in April:
“Well, I’ll tell you, you got Elliot Hill there. He’s an old hand. You have a 2.8% yield, but it is from China, it is China. The stock’s still $82 billion. Maybe it shouldn’t be $82 billion. I think the stock’s going to do very little. We own Starbucks for the Charitable Trust, and a lot of people feel that’s the same way, and I think Starbucks is a better company than Nike. So, just to understand that if it’s got China in it, people just say [sell, sell, sell] and then there’s nothing more to say.”
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