Jim Cramer, the host of Mad Money, said on Friday that it was a rough session for anyone holding nothing but AI stocks.
“It’s a great reminder of the need for diversification. If you pack all of your money into just a few red-hot groups, you can get blown out of the game on a day like today… That’s why I always tell you to diversify because I don’t want you giving up on the entire asset class at the exact wrong time because you were overloaded with one sector.”
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Cramer said he often talks about diversification as a way to spread risk, but added that avoiding concentration is not just about a cliché like not putting all eggs in one basket. He explained that the real danger shows up on days like Friday, when investors look at accounts and ask what they have done with money after realising they were far too concentrated in one group. He said those moments cause panic, regret, and bad decisions, which is exactly what diversification is meant to prevent.
“We know, though, that if you’re not diversified, if you own too much of any one segment and that segment turns sour, you’ll be finished. It’s just impossible to take relentless losses like that without wanting to throw in the towel. Being diversified, knowing what you own, these are the difference makers. These are the things that can be a drag. They can take time. They can produce losers. But ultimately, the winner will be you because if you’re diversified, you’re never going to get blown out, which means that you’re always going to get another opportunity.”
Our Methodology
For this article, we compiled a list of 21 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on December 12. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2025, which was taken from Insider Monkey’s database of 978 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’s Recent Takes on These 21 Stocks
21. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 183
Broadcom Inc. (NASDAQ:AVGO) is one of the stocks that Jim Cramer shared his take on. Cramer called the stock a “battleship” during the episode, as he said:
“Look, I believe in the growth of the data centre. I think we’ll look back on the stock of Broadcom, down over 11% today, and say, wow, I waited a couple days after its hideous decline, and I found out that insiders bought it and orders are flying in. I like to buy this kind of stock, not in free fall, which it is right now, but usually a couple days after the free fall, make sure that all the sellers are done.
Here’s what I know, though: When we get days like today, wise guys will come up to me and say, thanks for nothing. Thanks for putting me in at the top at Broadcom. I don’t know… People do that. I didn’t say that. And second, my Charitable Trust has plenty of fail-safes, which include buying small, not large, because Broadcom’s now a battleship, not a swift boat, and it’s going to take time to mend. We do own a lot of it, and I like it, even if we had to put up with days like today…. That’s pretty much par for the course. Still, owning something like Broadcom when it’s getting killed hurts.”
Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor devices and infrastructure software, including networking, connectivity, and storage solutions. The company’s products are used for applications in data centers, telecommunications, broadband, smartphones, industrial systems, and AI networking.
20. The Clorox Company (NYSE:CLX)
Number of Hedge Fund Holders: 37
The Clorox Company (NYSE:CLX) is one of the stocks that Jim Cramer shared his take on. Discussing how Friday was a bad day for people who only own AI stocks and emphasising the need for diversification in one’s portfolio, Cramer commented:
“It’s a terrific day to own Clorox and… Chipotle, but not so terrific to own the data centre plays with the super speculative names… If you don’t have anything like a Clorox… to offset the damage, it’s very hard to take that kind of pain. I’ve gotta tell you, that’s tough for me, and I am a seasoned pain taker.”
The Clorox Company (NYSE:CLX) makes cleaning, household, and personal care products, along with food and water-filtration items. During the November 11 episode, Cramer highlighted it as “one of the worst stocks in the S&P 500 this year,” as he remarked:
“Sometimes when stocks are doing badly, I get worried, not because I want to get out, but because I wonder if I might be missing a once-in-a-generational bottom. Those don’t come around all that often, of course. And right now, I’m concerned that we might be missing a bottom in a group of stocks that I haven’t particularly cared for at all, especially in a long time… The group that I’m talking about, the consumer packaged good stocks, too much inflation, not enough growth, growth being the magic elixir that makes your investment winners and it doesn’t have it… I’m looking at Clorox, oh boy, one of the worst stocks in the S&P 500 this year…. some terrific brands here, Burt’s Bees, Hidden Valley Ranch, Brita… Kingsford Charcoal, and of course, Clorox itself. Got a 4.72% yield.”
