Jim Cramer warns investors to not be swayed by market chatter

My mission is simple. To make you money. I’m here to level the playing field for all investors. There’s always a bull market somewhere, and I promise to help you find it. Mad money starts now. Hey, I’m Kramer. Welcome to Mad Bunny. Welcome to Kramer, Arca. I’ll be my friends. I’m just trying to make a little money. My job is not just to entertain, but to explain. So call me at 1800 and 743 CNBC or tweet me Jim Cramer. Even on a decent day like today with Dow gained 331 points, S&P climbed .51%, NASDAQ glide plus .27%. I’m sure you have some positions, some stocks that you own that are treading water or being hit, especially some of those tax and you’re struggling to figure out if it’s worth it to hold on to them. Maybe move into the drug stocks or the banks or something a little more Placid like the industrials. I get it back At my old hedge fund, we reviewed our positions three times a day. That’s right. Every day, Three times a day. I’d have to defend them to Karen Kramer, our head trader. If my enthusiasm flagged at all, if there was a negative news story, a downgrade, a price target cut, or even if the stock was just heavy, where sellers didn’t seem to care what prices they they sold their stock at, she’d deem it vulnerable and Kick It Out whether I liked it or not. Sell, sell. Sell. Sell, sell, sell, sell. It was brutal, but necessary. We were running out of the people’s money. We had to contain our losses. They were looking over our shoulders when it came to dead money. Forget about it, she say. Let’s boot it and come back at a better time. There are other stocks to own that can win. You see this attitude a lot from people who come on our network, don’t you? They’re running money aggressively. They can vacillate constantly. I did the same thing in my hedge fund. It served me well. But that’s not how we run the charitable trust, the one you can follow if you belong. Like so many of our callers, to the CMC investing club, it’s not the way you should manage your own money at home. You’ve got other things to do. You have no need to trade in and out of positions like crazy because you don’t have any investors looking over your shoulder criticizing you every move. You can afford to find companies you believe in and stick with them as long as the facts don’t fall apart on you. Now, that does require a great deal of faith in both management and the underlying business, because invariably your stocks will go down and you’ll want to give up on them because of the pain, the House of pain. But that’s usually a mistake when you’re not running money professionally. Stocks sell off for all kinds of reasons, and it’s difficult to swap back into the good ones before they rebound as long as the thesis hasn’t changed. You must resist the desire to give up on your favorite stocks no matter what you hear from the billionaire class and the hedge fund managers who want to cut their losses because they can’t spare a spot on their portfolio sheets for what feels like a do nothing stock. Which brings me to the most talked about stocks of the current era, NVIDIA, Apple, Amazon, and Tesla. Remember them? For companies with riveting stories and temperamental stocks. I like the first three, not so much the 4th. Let me start with NVIDIA now. OK, bear with me here. Hardly an hour now goes by without some portfolio managers, some analysts who trimmed or dumped their NVIDIA positions. Why? Because it’s too high. Sometimes I wonder if they even know what NVIDIA makes. Everyone agrees the stock has moved up a great deal. Many have sold it and bought it back repeatedly. That’s great. I believe you should just own NVIDIA, not trade it. Because I’ve come to believe in the CEO, Jensen Wong. I like their business. I believe in him when he says we’re on the cusp of the new industrial revolution and that AI revolution, that it will be powered by towers of invidious chips which happened to run a place in speeds. The best thing I could see them selling trillions of dollars of these chips because they give you everything you need for what’s known as accelerated computing. And that’s why we own NVIDIA forever. For the Chapel Trust, of course. We check our thesis constantly. This morning I interviewed Rene Haas, the CEO of ARM Holdings, a company I like very much, close partner NVIDIA, and point blank asked him if he believed in the new industrial revolution. He does. Maybe he’s just talking his book. Everybody doesn’t. Maybe I’m long about Jensen and Renee, but I do have a degree of faith in NVIDIA and anyone who’s believed in this stock long term has indeed made fortunes. I will ask Chase for you, Allow the CEO of Arista, who knows the space cold, about her condition, though later in the show. That’s a winning stock too. Of course the stock acts. This stock of NVIDIA acts very heavy and it peaked at the beginning of March. That was about 90 points ago. That was should you have given up on the thing? Should you give up on it now? Now. What if I told you that NVIDIA stock basically did absolutely nothing last July through December of last year because it was digesting a huge move then and the market temporarily turned hostile? What if I said That’s typical of the way the stock trades practically in this tape. You shouldn’t expect much of NVIDIA when it reports in a little less than two weeks. If you can’t handle the fact that it periodically goes in and out of style, maybe you’re not cut out for individual stock picking. That’s OK, most aren’t. How about Apple, right? This has been a Strap yourself in the mass stock for ages. In the last few months have been one of the really the rougher rides I’ve experienced. Not only did you have to endure the endless reports that Apple’s China business kept getting worse, reports that turned out to be false, you also had to hold on through multiple downgrades and price cuts and Oh my, all based on declining phone sales and the possibility of a cut to the full year forecast. Instead, when Apple reported you got a better than fear result for handset sales and a strong forecast for the current quarter. The opposite of what everybody said could well, many people said could happen. Now if you had faith in Apple, the solid quarter was not a surprise, but if you did, I know at times I thought I was the only one that left it did or the stock winner of world like that. After earnings. Now we have the Worldwide Developers Conference in June and the next phone in the fall which could be chock full of AI and therefore a must upgrade for you and for me, I like those odds. Again, the toughest course of action, just owning Apple and holding it tight, turned out to be the best move, as it almost always is with the leadership of Tim Cook. Amazon has been difficult because there’s so many moving parts, anyone of which can sync the stock, Prime web services, advertising, delivery costs, and trust regulators who have it in. For the company that’s done more to give us low prices than anyone save perhaps Costco and Walmart. Now you may not realize, but every single metric has improved markedly markedly in the last year especially time delivery because Amazon’s worked hard to change routes so you can get everything at previous well, I’d say a lot of stuff same day by the way web services really thriving too and that’s where the money is. That was decline declining the client and now it’s shooting all the way back. We tend to you on at these accomplishments but the fact that all these moving parts came together feels downright miraculous to me. But it’s actually not a miracle. It just has to be great management. Now, finally, there’s Tesla. Now this stock doesn’t fit the pattern The other three First, Tesla sales are going down, not up. Second, the estimates are going down, not up. Third, the stock super expensive for a car or a tech company. 4th prominent execs seem to be jumping ship pretty constantly. 5th The bloom is off the electric rose in this country, at least for now. Six. I tired of hearing about Elon Musk Robo Taxi. Maybe one day it’ll be a savior, but America isn’t set up for a minute. China wants to do it. They’re going to do it cheaper at Homegrown. Now, I know Musk is entertaining fewer. Everyone wants him on TV, right? I know he’s a visionary. I’ll even stipulate that if he’s wrong about the technology, it’s because he’s just too ahead of his time. Doesn’t matter to me. Tesla doesn’t pass the test, the others do. The facts are on our side. So it’s very hard to justify having faith in this one or the man. Here’s the bottom line. You need to think about these kinds of challenges for you buy any stock, and most certainly before you sell any stock, you don’t need to swap in and out of stocks constantly. A hedge fund manager. You just need to figure out which companies deserve your confidence and you stick with them. Let’s go to Betsy in Connecticut. Betsy. Booyah, Jim. Whoa, Booyah. Betsy, what’s happening? I love your show. Thank you. Thank you very much. I’m calling about Boston Properties. The stock has taken a real beating these past five years. I’m tempted to get in now, but the commercial real estate market is facing lots of headwinds, particularly office buildings in large cities. Do you think there is the buying opportunity now? I think, well, first of all, thank you for your confidence. I think you’d be reaching for yield. That’s something I learned when I was at Goldman Sachs. You’d never do. I literally think, and the stock has had a move here, but I literally think that what’s happening is, is that people want a good dividend and I want a safe dividend. Stick with the show, Red Roar. And I think you can hear three of them that I think you will like very much. Let’s go to Omar in New York. Omar, hey, Jim, longtime fan, thanks for having me. Thank you for calling in DoorDash. No worries. As of late, DoorDash has been trading below $120.00, and Uber and Instacart have recently announced they’re preparing a joint effort to take market share away from the fast food delivery giant. As an investor, is there any cause for concern regarding Doordash’s future outlook? OK, well, look, it’s an expensive stock, but I believe in Tony Shu. I have believed in Tony Shu when it was private and when I owned restaurants. And I think he’s doing a terrific job. I actually liked the quarter. I think people were way too quick to say it wasn’t great. They, I think, will be judged harshly. Let’s go to Bill in Massachusetts with Bill. Oh, yeah. Jimbo. Oh, yeah. Bill, What’s up? About six months ago we talked on the show about vert of holdings and it has doubled since then. Yeah, I’m very happy. Good boy. Good boy. That one. Thank you. Go ahead. No new one. Yeah. Jim. Yeah. You’re with me. Go ahead. What’s up? So what do you think? What do you think vert is going to do at this point? Should I pick up some more should I wait for you don’t buy more. Here’s what you do after 100% move you can’t buy more. What you have to do is you want to trim something. I think I would take 20% off that. What I want to do is make it so that you play with more of the houses money than you’re doing and by the way I think the world inverter than have and everyone knows that because Dave Cody’s and chairman I’ve been back in Dave ever since he really decided to kind of take it over. Then we put, I don’t know, we caught about an 80 point game. Never shabby. All right, look, you don’t need to operate your portfolio like a heads probably matter. Just figure out which companies deserve your copies and then stick with them. Oh man, tonight, how is AI spending impacting one horse of a stock called Arista Networks? I’m sitting down with the CEO. If you’re supposed to reach Rise, then I’m comparing Monster Beverage to Celsius holdings. Telling you which company comes out on top might be surprising to you because these energy drink socks, they can be very fickle. And if you think that rates are only headed lower, then it might be a good time to pick up a retail read. Not an office read, but a retail one. I’m revealing the ones on my shopping list, so stay with Kramer. Don’t miss a second of Mad Money. Follow at Jim Cramer on X. Have a question? Tweet Kramer hashtag Mad mentions Send Jim an e-mail to [email protected] or give us a call at one 807 Four Three. CNBC. Miss something? Head to madmoney.cnbc.com.