My mission is simple, to make you money.I'm here to level the playing field for all investors.There's always a homework in somewhere, and I promise to help you find it.Mad Money starts now.Hey, I'm Kramer.Welcome to Mad Money.Welcome to Kramerica.
I'm here with my friends.I'm just trying to make you a little money.My job is not just to entertain, but to educate and teach you.So call me at 1-800-743-CBC.Tweet me at Jim Kramer. Nope, nope, not at this level.
I'm talking about how the S&P 500 roared all the way to 6,000, practically in a straight line, because buyers were everywhere, and sellers, they were nowhere to be seen.
That's how we get another good day, Dow gaining 260 points, S&P advancing 0.38%, Nasdaq gaining 0.09%, and all the major averages closing at new record highs.It was another amazing session, at least if you're a borrower.
I have said it several times as we are going to say it again.
This is, ladies and gentlemen, a historic move we are witnessing, fueled by an election where voters chose a candidate who's pro-growth, pro-higher stock prices, pro-lower interest rates, and pro-lower taxes.
Love him or hate him, Trump is the most explicitly pro-stock market president in history.Now that he's won, that's paying off in a host of sectors.Yesterday it was tech, today oil, drugs, consumer products, financials.
These moves are spectacular because they're driven by money managers who are terrified that they won't have enough stock in their portfolios so they won't sell.
At the same time, we're about to see a wave of takeovers as the antitrust regulators will stop trying to block every deal under the sun because a new broom is going to sweep clean.I know some people say Trump's agenda mainly benefits the wealthy.
But look, we live in a democracy, and he got a clear majority.This is the outcome the voters wanted.Even if it's not the outcome you wanted, you might as well take advantage of this incredible stock market.It's not closed to you.
Sure, it's easier for the rich to invest.I'm not denying that, but anybody who's willing to save some money can own some stocks.Now, this Trump rally won't last forever.Nothing lasts forever.
And it doesn't hurt that the Fed blessed us with a quarter point rate cut. that was finally able to push the bomb right in the right direction.That's some rare octane thrown on this fire.But the question is, can the fire continue next week?
Well, that's a tough question.I'll tell you why, because we were up so much.Well, why don't we do this?Why don't we just look at our game plan, make some sense of it?On Monday, we have Monday, but this time it's Monday.com, reporting in the morning.
Now, this is an Israeli software company that streamlines workflows and provides visibility to what people are working on at your business.There's a ton of companies just like it.
It's a quintessential enterprise software play, which is why I'm starting the game plan with it, because this group, this enterprise software, they were being sold relentlessly.
Somehow, sellers just walked away from these companies, which is how Salesforce and ServiceNow were able to soar during this period.I think these enterprise software stocks have much more to go because there's just not a lot of sellers here.
They are as blessed now as they were cursed not that long ago.Did you see Salesforce today? Tuesday's huge, all right.First CBC investing club named Home Depot report.
And this is the quintessential stock to own when Fed's cutting rates always has been, always will be.I remember since 1988, I've been playing rate cuts with this one.
I'm looking for the despot to raise numbers given that we're headed for a lower interest rate environment.They could forecast the first real growth in years.In this tape, the stock, which looks like it's up, could head up much higher.
Now we hear from e-commerce facilitator Shopify and it's got it.I got to tell you, this last quarter had what many people thought was too much spending.I say when you have a flood of business, you have to spend to be able to handle it.
I think we'll see the fruits of Shopify spending this quarter.Lots of people want to know why food prices got so out of hand in the last few years. You know what?You want to learn?Why don't you listen to the Tyson Foods conference call like I will?
You'll get a ton about pricing and they're the dominant player in meat and chicken.Sometimes you don't listen to a conference call to pick a stock.You listen to learn.I learn from Tyson.Enter the close Spotify. Not Shopify, Spotify reports.
And that sucks up more than 100% for the year because they keep raising numbers beyond even the wildest of analyst projections.And I bet they can do it again.You know why?Because people regard it as a bargain.It's kind of like Netflix.
This is a bargain, bargain, bargain.Remember, this rally is predicated on a non-hostile bond market.Debt can change the bond market's mood.And Wednesday morning, well, we got to worry about this thing.This is a potential mood changer.
It's called the CPI, Consumer Price Index.A super hot reading could put a damper on some of the buying that we've been having.I'm watchful.
CyberArk reports Wednesday morning, and this is an exclusive cybersecurity company that guards what's called the keys of the kingdom, of the digital kingdom, that is.I think it's put up some great numbers.
This cybercrime shows no signs of abating whatsoever.How terrific is this sector for stock performance?You know that we own both CrowdStrike and Palo Alto Networks for the Chapel Trust.
They do compete, but there's so much business going around, you gotta get in there. We like Palantir here, too, even as it skyrocketed, no denying that.Cisco seems poised for breakout, doesn't it?Yeah, this is the CSCO kind.
They're the network of choice for all sorts of AI and non-AI users.Ever since Cisco bought Splunk earlier this year, it's been able to offer a cornucopia of analytics.That's a powerful combination and one that can surprise to the upside.Thursday.
We hear from Disney.Now, there have been so many good things happening at Disney, but they keep being obscured by weaker theme park numbers, which I think will get stronger.The company's expanding its Disney cruise line business.
That's really what I'm focused on right now.New ship is about to have an inaugural voyage, as well as several more behind it.Can the cruise expansion actually move the needle, though? You know what?
As it gets bigger, the answer will be yes, and it'll be a profitable needle.Now, I got the survey this week showing that the CBC Investing Club members love our monthly club meetings, where we set the agenda for the near future of the Chapel Trust.
Jeff and I, Jeff Marks and I sit down, we actually do a video.It's a big video. We host one of these meetings at noon Thursday.You can still join the club, get in on an hour-long meeting.It's been the highlight of being a member.
I'm just passing on what I saw from the survey.Thursday, after the close, we have results from Applied Materials, AAMAC, which is widely considered to be the dean of the semiconductor capital equipment industry.
I actually love Lamb Research, too, I should say.Now, I think this group's been falsely accused of weak demand because of this outfit ASML, which did a real horrible job explaining the story.
Hopefully, Applied Materials can clear things up when it reports.The semis have been weak of late, and in an otherwise generous tape, maybe Applied Materials can change that dynamic.Finally, Friday.Friday morning, Alibaba reports.
I've been adamant that if you want to invest in China, you need to buy shares of Alibaba because it has Western financials and it's a legit monstrous online retailer.
We know that the Chinese consumer is hobbled when it comes to luxury goods, and there seems to be a sense of listlessness in that populace.That said, Alibaba does a ton of business and makes the numbers pretty routinely.It's the Amazon of China.
You need to know that I'm not recommending anything in China, not here, not anywhere, because I think the economy is a train wreck there.
And the government stimulus efforts have proven ineffective, including today's multi-year $1.4 trillion local government bailout.Yet another plan that won't put money in people's hands.
People that are dealing with a deflationary environment, they need that money, which is so desperately needed if China ever wants to return to growth.So many people think they missed this run to $6,000.
You know that, S&P 6,000, of course I'm speaking. I say you need to look at things sector by sector.Today tech took a breather, breather was worth buying, maybe Monday restaurants cool, I don't know, hardline retailers roar.
Then we might go back to the financials and then the industrials. It's an incredibly bullish, virtuous circle of gain.Look, I know that stocks performed very well under Biden.I know people are saying, hey, well, why doesn't he mention that?
I just did.But Biden sincerely didn't care much about the stock market.It was an abstraction for the gentleman during his four years in the Oval Office.That's no longer the case.So here's the bottom line.
Stocks are about to have a champion in the White House again, even if you might think they aren't worthy of a presidential supporter.I say get used to it, even though the buying started already, because we got a lot more room to run.
Hey, Jim, my friend, and I consider you a friend because you've been coming in my my home, my living room for the last 20 plus years.But anyway, thank you.
Thank you.And I hope I can return the friendship.What's going on?
Well, I bought a stock, Lily. back when they came out with their weight loss drug, Monjaro, pretty much on your recommendation at the time, I think.It wasn't long after.Thank you.I bought it as a trade, and I more than doubled my money.I love that.
But now I'm in a dilemma.Do I sell it because it's met all the criteria for getting rid of a trade or do I hold it?Okay, I went over today.
David Ricks, I said he should do a do-over.He's the excellent CEO.I hate being harsh about a man I think is so excellent.But he didn't explain the deal very well about what happened with Jarvis sales.
He's gone around, he's starting to make some calls, starting to talk to the investment houses, and I'm getting a better picture that just says that demand is increasing. Incredibly strong and a lot of new set tests coming out.
That's why the stock was up 34 today And that's why I think you got to stay in it and thank you for the kind comments max in Illinois max Hey, Jim, apologies in advance for the pun, but are we checking in or checking out of Airbnb?
No, no, we got to stay at Airbnb.Here's the problem Airbnb one of its worst
Again, I don't want to be critical of great business people, but Brian Chesky has a disappointing habit of always telling you that things aren't going to be as good in the future.That's because he's humble.That's because he runs scared.
I like that, but I would temper it with a little bit of enthusiasm about how some things could go right, not just things go wrong.Brian, don't take that too personally.It's what I believe.How about we go to Mike in Ohio.Mike.
Hey, Jim, how are you this evening?
Real good, Mike.How about you?
good that i had a question uh... with before you regarding chevron i took a pretty heavy position in december of twenty three at a one forty two uh... for the uh... dividend play boom more than that the uh... the equity uh... not real happy with uh... the equity position right now at equity appreciation
Well, it has been the underperformer in the group, which is a shame because Mike Worth is a good man and it is coming back.And I like the stock here.
EOG had some very good things to say today, which made me feel that maybe things are turning up a bit.But look, you compound that dividend.You let with Mike, go with Mike about what he's doing in the Gulf of Mexico and what he can do with Hess.
And I think you'll find yourself with a very good long term story.And there's nothing to matter with long term.All right.The buy in stocks has gotten off to a strong start already.But I say there's still a lot more room to run on man tonight.
Is work growth booming for Dutch Bros since popping through the 52-week high on its latest report?I got this coffee chain's top brass to learn more.
Then shares of Sweetgreen SG fell almost 20% on earnings overnight before bouncing back to end the weekend in the grain.I'm checking in with the CEO.And don't miss a special Mad Money tradition ahead of Veterans Day.
Some outstanding West Point cadets are joining me to ask their stellar investing questions.So stay with Cramer.
Don't miss a second of Mad Money.Follow at Jim Cramer on X. Have a question?Tweet Cramer.Hashtag Mad Mentions.Send Jim an email to madmoneyatcnbc.com or give us a call at 1-800-743-CNBC.Miss something?Head to madmoney.cnbc.com.
I don't know, I think I'm never going to change.Some stocks are just so darn exciting, I can't believe I get to speak to the CEO.Like, can you believe this rally in Dutch Bros?
This is an Oregon-based coffee chain that put a spectacular quarter Wednesday night.Solid stock surged 28% yesterday, tackled another 5% today.At this point, the stock's now up nearly 50% for the year.
Now, regular viewers know I'm a longtime fan of Dutch Bros, long before it ever came public, and I like what I'm seeing here.
Not only were the numbers fantastic, but the rolling out mobile ordering, testing out potential food options, expanding the menu, maybe it could have a lot more room to run.Let's take a close look with Christine Barone.
She's the President and CEO of Dutch Bros, to learn more about what's going on.Ms.Barone, welcome back to Bad Money.
Jim, thanks so much for having me.
All right, so Christine, I get sometimes the superlatives don't work.I can't convey how much I love your place.So I'm just going to go right to the heart of the matter.Will you please tell our viewers what the 911 is?
OK, well the 911 is will have it hot or iced.Iced is always our specialty and will add an extra shot in your drink for you.
And how many shots can I get six shots in a 911?
you can get six shots in a 9-1-1.
Okay, well, people have to realize, because I think that everything's a little tawdry compared to Dutch Bros, because you guys understand the quality of taste, but also the excitement of coffee, and it's been lost in other places.
I find that when I think about your place, the first thing I think of is great tasting coffee, and then people who somehow remember my name.How can you, in this day and age where we just have to worry about throughput,
Do you have people who both remember your name and know your coffee?
So since the very beginning, we've focused on speed, quality and service, and it's all three of those things together.And I think the service is about your name.It's about connecting with you.
It's about making sure that you're having a great day at Dutch Bros.
You know, I went on Reddit today just to see what people are saying.I got this one.I haven't been to a Starbucks in months.Dutch Bros is so much better and they always have a great selection.Sugar-free, protein milk, energy drinks.
The combos are endless.Tell me about the combos.
Yeah, so one of the thing we're focused on right now is our holiday beverages.In fact, I'm having a candy can mocha right now and but we make drinks for however you want it.One of our specialties is really personalizing for you, Jim.
I know that you love the annihilator, but we have all different ways we can make the annihilator for you.So it has chocolate Mac in it.We can add protein milk.We can make it skinny for you.All different types of things.
Now, when I hear about the problems Starbucks had and Brian Nichols coming, you know, he's there and he's going to make changes, I keep thinking that they had trouble with all the different permutations of drinks.
How come you guys don't have a similar problem?
So I think since the very beginning, we've been about iced.We've been about convenience with connection.We've been about speed and really just connecting with you.And all of that personalization has been a big part of us since the very beginning.
So I think we've really built our operations and we've built our brand around the ability to personalize really well.
Now, when you try to hire people and you've had to hire people, you're opening a lot of stores.Are you searching for people who have good memory of names?
So I think who we're searching for is we're searching for people who want to be a part of Dutch Bros.We're searching for people who want to be a part of a team.They want to come in together and support the person that they're working next to.
And we feel like we can teach them everything else.We have an awesome training program and we really invest in learning the drinks.We invest in, you know, connecting with your customers.
And I think one of the biggest things is we give our bro east as time to connect with their customers.
Now, one of the things I thought was amazing is that a couple years ago, I would ask your company before you got there about labor, and there was such labor shortage all over the country, it was difficult.
Could you please tell people what the ratio is now of people who want to work at Dutch Bros versus people you hire?
Yeah, so we shared this quarter that we've gotten 400,000 applications this year for 11,000 positions.
Wow.I mean, that's incredible.And of course, obviously, when you're expanding, you have to take that into account.
How are you, are you, I know that there was talk about how you were going to do a certain number of stores, then it was a little bit less, then a little bit more.
How are you thinking about expansion given the fact that there's not an endless pool of great labor?And I think it's sometimes when Dutch Bros fell, the stock fell badly before you, I thought there was too much expansion.
How are you modulating expansion?
Yes, the way we think about real estate, the strategy is really working.And I think about matching your process, the data and analytics, what you're bringing in so that you know what your AUVs are going to look like as you grow.
And I think we really have all of that dialed in and matched.And so we have tons of learnings from all of the expansion that we've done.We're more rapidly feeding in those models.And I think we're really getting that real estate strategy right.
OK, now switching from real estate to the actual matter at hand, coffee, coffee prices.I learned from the great Howard Schultz never to overdo the cost of coffee.It's only one small part of the company.Is that similar with Dutch Bros?
Because we know coffee prices have spiked.
Yeah, so that's something we absolutely watch closely as we look at our overall cost basket.Coffee is a little bit less than 10% of that overall cost basket, but we do look at it closely.
Alright, and then as you are expanding, when are you thinking about making a big push into the Northeast?
So that might be a little while.So as we expand, we're getting people ready.All of our growth is predicated on people.
We've got 400 operators ready to open markets, but we're really growing in a contiguous way so that we're growing across states that are next to each other.We just had the ability to enter Florida this year.
So we still have a lot of growth ahead of us.We will be there, but it'll be a little while.
I actually, if you had told me it's going to be within the next year, I would see you guys are expanding too fast.We don't want that.The slow and steady win the race in this business, even as Wall Street doesn't want that.
Wall Street wants willy-nilly expansion, and then frankly, they don't care.So you are a terrific steward of the Dutch Bros brand.Christine Barone, president and CEO of Dutch Bros.Thank you for coming on the show.
All right, next time I call 9-1-1, I gotta be very careful, because I want six shots in mine.Thank you so much.See you soon.All right, everybody's back after the break.
Coming up, it's not easy being green.Sweet green shares wilting after earnings.Kramer breaks down the action with the CEO.Next.
All right, what the heck just happened to the stock of Sweetgreen?Going into today, this was by far the best performing restaurant chain in the Russell's beef house, up 275% for the year.
Sweetgreen's now at 39 and change, but that's after pulling back 6% today in response to last night's quarterly report, which was fantastic.
Initially, the market despised the results, and at one point, Sweetgreen was down almost 20% in after hours trading. Screaming at the TV, this is ridiculous.It opened down nearly 14%.And then a funny thing happened, then a correct thing.
The buyers came right back in.Eventually the stock made back a decent chunk of the losses, finishing down 6% for the day, up slightly for the week.So what's going on here?Let's check in with Jonathan Niemann.
He's the co-founder and the CEO of Sweetgreen and a real restaurateur.Get a better read on the corner of your screen.Welcome back to Mad Money.
Jim, great to be with you.
You know, there was so much in your conference call and what you were saying that is just so true to your word, but I'm going to just, an answer that you gave off the cuff that I like so much.
You want new ideas that are just delicious, craveable, and really culturally relevant, and then need to operationalize them in a way that fits with our model.That's that technology and taste that you guys are famous for.
Explain how important that is to people who come into your store to own your stock.
Absolutely.So, you know, the idea for Sweetgreen was to make it easier, more delicious, convenient to eat healthy food.
And so we have this amazing model that brings together this powerful technology with the Infinite Kitchen as we look forward, as well as our approach of creating these menu hits.We kind of like to take these fast food hits
and give you a healthier version of it.So think about our first thing we made, the guacamole greens.It's guacamole and chips built into a salad, our chicken pesto parm.That's what we're doing with ripple fries right now in our test.
It's taking an American classic with French fries, but doing it without seed oils, air frying it, and making it something that can be a little bit of a permissible indulgence.
The key for us is coming up with these craveable, delicious things that fit into our model, can drive incrementality, drive transactions, and help us build check, all the while making people feel good about their decisions.
Now, when I saw you last, we went to the Infinite Kitchen.I was blown away.And I talked to people about it.I said, got to go.And one of them said, oh, Jim, you fell prey to that.Oh, come on.It's all just a graphic.It's something to look at.
I saw from the numbers this time, not only is it great for your margins, But the customers love it and they get their food hotter, quicker, better.
I think that's the key.The way I run the business, there's a core framework I use.I call it win-win-win.Everything we do needs to be a win for the customer, a win for the team member, and a win for the company.
And the Infinite Kitchen does exactly that.For the customers, they're getting better quality food, the temperature control, the perfect portioning, you're getting a perfectly consistent product.Our team members are loving it.
It's easier for them to operate.We're seeing that with meaningfully lower turnover in the stores that have it.And it's great for the company.We're seeing at least 700 basis points of labor improvement.
We think that over time, there's going to be second and third order benefits.And in some of the stores that have opened, most of them are been nine of the 10 that are open have been new stores.But in the one retrofit, we're seeing that store.
We're seeing some nice comp lift with that store. and we're seeing some frequency lift with the customers because they can now get their order in like, on average, three minutes.
So I think it is a true win-win-win and it's going to be a real inflection for the company as we lean into this next year.
Now, it is not easy to be you.You opened in Westport, in Newport Beach, you opened in Montville, New Jersey, Columbus, Ohio, Charlotte, North Carolina.How are you able to ensure quality control when you're all over the map there?
It starts with our food ethos, and it starts with really having really clear standards of the type of food we serve.We call it our sweet standard.It then goes into a lot of the tools, systems, and most importantly, our culture in our restaurants.
The head coach, which is our store manager, is the key to the business. That person is running, on average, a $2.9 million restaurant with over 20 plus employees.
And it's the culture they create, the standards they create, all about this idea of serving food safe and really high quality food at scale.And so there's a lot that goes into it.We have a lot of systems and tools that help us maintain the quality.
There's a lot of what I call this balance of art and science.There's a ton of science, but the art is equally as important.The culture, the leadership. and how we make guests feel every day, that really, really matters.
I wish I could tell people, it's hard to describe the 2.9 million.It's such a big number, but it's difficult because I kind of want to not dwell on that.That's Wall Street stuff.They want to know how you did last week.I look at things individually.
For instance, I'm a grower, I'm a gardener, and I grow kale.And I would never de-stem the kale.You know why?It's too damn hard.I don't have the time to de-stem the kale.You guys are de-stemming the kale every minute.
We're disseminating the kale by hand.I mean, what people I don't think realize, I mean, you can see in some of these images, is we scratch cook everything in our restaurant.
So not only are we sourcing superior quality food, really leaning on regenerative agriculture and sustainable farming, our supply chain is built regionally.But on top of that, we're making these things from scratch in our kitchen.
Everything we cook, we're marinating, we're roasting on the hour.We hold things for very short periods of time to maximize freshness.And one of the things I mentioned on the call is something I talk to my team a lot about.
I call it get better as you get bigger.A lot of restaurant companies, as they get bigger, they slowly chip away at what made them. And for me, it's been a commitment not to do that.As we get bigger, how do we continue to go look back at our core?
What gave us the license to get here?And make sure we do not lose that.Really invest in the quality of the food.And for me, it's a real commitment to the quality of the food as we scale.
Now also, just to indulge the Wall Streeters out there, 6% comps, got better every single month, having a great October.
I know those things matter to Wall Street, but what I care about is that you are continuing what you told me, which is you're not gonna open stores until you have the highest quality, the full harvest menu's gotta be a big deal for people, and even right down to the caramelized Brussels sprouts.
You just have to care about this in order for that, that's how you get the cadence of good numbers, right?
It's absolutely right.We're building a brand for the long term and so we really want to take a really intentional approach of how we expand.The worst thing that can happen is we go too fast and we lose the quality of what got us here.
So we very intentionally slowed down our restaurants a little bit this year. to really get things right, integrate the Infinite Kitchen.And as we look forward, we do think there's an opportunity to accelerate.
Given the success we've seen in a lot of our emerging markets, we see an opportunity to densify these markets and pick up the pace of openings.But my commitment is that even as we continue to grow, we're going to stay true to our roots.
stay true to our roots around the quality of our food, creating great jobs for our team members, and I think that win-win-win philosophy is what's going to create a great brand and business for the long term.
I hope people out there listen who one day have a company or want to have a company that to have your stock go up 250% required you. to say no to the guys who wanted you to put up 200 units right now.
It requires you to be able to put a stake in the saying and say, we are not like the other guys.
That's how your stock ultimately ends up great, because people realize that you care about quality and the technology to give it to the people who are your patrons, who are your bosses.
And I want to thank you so much, Jonathan Niemann, the sweet, green co-founder and CEO.Congratulations.Great work.
Thank you, Jim.It's great to be with you.
OK, maybe I'm going to be back here for the break.
Coming up, it's a Veterans Day salute to service.Kramer reunites with the cadets of West Point for a very special Q&A when Mad Money returns.
On Monday, it's Veterans Day.It's a special time for this country.It should be for all of us to thank the women and men that serve in our armed forces and those we've lost.
With that, we're bringing back one of our favorite Mad Money traditions of the year, our annual salute to service, where we take time to honor all those who commit their lives to protecting ours.
So tonight we are proud to carry on one of our longstanding and most sacred traditions, having the U.S.Military Academy on our show.
Many times we've hosted West Point on Mad Money, and one of our most proud days was when we were on the campus on their tour, 2017.Tonight we are once again joined by some very special guests, cadets from the Finance Club at West Point.
These people are the brightest and the best, and I'm so excited to get to answer some of their finance and market questions.So let's get started.
Hi Jim, how are you?I am good, sir.How are you?Good, thank you.Cadet Sergeant Thomas Sennett here from Chatham, New Jersey, and I have a loaded question for you.Chatham, New Jersey?Yes, sir.We crushed you every time we played you.No way.All right.
Anyway, what is an aerospace and defense company you view having strong returns as political uncertainties and global tensions increase? This is a great question.I'll tell you why.
Because we often think about the hardware companies, the big ones.I want to go nimble because that's what I see in the papers.I want to go nimble because that's what we do very well and people don't think we do.It's air environment.
They came to us probably about 170 points ago and showed us drones that were being used in agriculture.Next thing you know, they're being used to help protect and to help you guys do a better job.So air environment is where I want to go.ABAV.
Thank you, Jim.Thank you.
All right, let's go to work.Hey Jim, thanks for having me on.Of course, thank you for being here.Cadet Michael Jacks from Houston, Texas.
My question is, with the White House pushing the Pentagon and intelligence agencies to focus on AI, do you see this as the beginning of an AI boom, and what companies do you think can benefit from this?
Okay, it should be the beginning, but it's not. And that's because Palantir understands.And Palantir's got this great Reformation Defense Department paper that I urge everybody to read.
They understand the procurement process, but most importantly, they understand we've got to be faster and better than the bad guys.So my idea, even though it's up a lot, is Palantir.
Hey, what's up, Jim?Cadet Austin Wilson from Centerville, Utah.I'm stoked to be here.Thank you.I'm curious how new investors such as myself can efficiently diversify their portfolio with limited budget.
All right, you're going to have to start with the S&P 500 index fund.Now, I'm not an index fund guy, per se, because I like to pick stocks.But I know the bedrock has to be index fund, and then you can pick stocks.Go that way.Yes, sir.
Thank you so much.Absolutely.Thank you.
How are you doing, Jim?I'm Cadet Elias Moore from Lufkin, Texas.Excellent.My question for you is how do you adjust your investment strategy during times of economic uncertainty, such as high inflation or potential recessions?
Okay, the key thing is cash.I don't like to make things difficult.When things are tough, you raise cash.When things are good, you put cash to work.We don't do anything fancy because fancy screws it up.Cash.
Hey Jim, I hope you're having an amazing day.Super day!Absolutely.This is Cadet Charles Lye from Frederick, Maryland.
So with a lot of debate surrounding the need for affordable housing, how do you predict a Trump administration will help real estate equities perform?
The biggest problem that we have in housing is that it's very difficult to get the deregulation environmental.You put up as many homes.The homebuilders are very responsible.
But what you have to do is you have to lower rates to the point that there's inventory.If there's inventory, then prices come down.That's what has to happen.
Hey Jim, Cadet Owen Fisher here from Wake Forest, North Carolina.Excellent.My question is, with the current yield environment, is it safer to rotate into more bonds or will stocks continue to offer more attractive returns?
You do stocks, but I'm betting you live to 100.If you do bonds, you won't have any money by the time you get there.
Hey Jim, Cadet Brendan Mussini from Gig Harbor, Washington.I'm wondering, Brian Nickell had great success at Chipotle.Can you replicate that at Starbucks?You bet he can because he understands everything.
He's even taken some hits to profitability so he gets it right.We're going back to Starbucks and Nickell's going to do it for us.
Booyah. Salutations, Jim.Cadet Devin Pathak from Fountain Valley, California.Given the rapid growth of decentralized finance, do you think that it could start eating into some of the banking stocks?
Absolutely, and that's why I think that people in the old banking, you better watch for a firm, okay?Because firms are doing a lot of things much faster than they are.
Hi, Jim.Cadet Lynn Kim from Old Japan, New Jersey.Oil and gas stocks have been strong this year, but there's an increasing pressure for green transition.So my question has two parts.
First, how do you see traditional energy companies balancing short-term profitability and long-term sustainability goals?And second, do you have any specific stocks or strategies that you think will do well or thrive in this environment?
What I want you to do is look at Cotera.
And the reason I say that is because they have a compensation system that makes it so that if you come up with long-term sustainable ideas, you will do better than the people who just keep their nose to grindstone and drill, drill, drill.
And I love that.If you can create a system that addresses sustainability right internally and pays people more, then you're going to be more sustainable than anybody else.
Hey, Jim, Cadet Jerry Saenz from Litchfield, Minnesota.With the current market volatility, how should retail investors position their portfolios?
All right, listen to me.It ain't volatility that's going up, OK?Volatility means this, and then go down.What we want to do is we want to be as much invested as we can, because we are in a low inflation environment with interest rates coming down.
That's about as good a moment as you can have.And we've got a deregulated new president coming in who favors deregulation and growth. You gotta have all ins, particularly for someone who's young like you.Thank you, sir.All right?Fantastic, fantastic.
All right, I wanna thank all these amazing cadets from West Point.Man Money thanks every veteran for their service.We salute you cadets as you pursue the next step in your life.Thank you for your questions and thank you for your service.
Man Money's back after the break.Come on up to the front.
Coming up, Kramer takes your calls and the sky's the limit.It's a fast-fire lightning round.Next.
It is time.It's time for the lightning round.Play this out. And then the lightning round is over.Are you ready?Let's go to Mary in Idaho.
Mary.Hello, my friend.Mary from Idaho.Frequently.Good to have you a listener.How are you doing today?I'm doing fine.I'm humming.How are you? I'm doing all right.I guess there were some technical difficulties, Jim, yesterday when I called.
So I just want to make sure you know that you have been appointed and confirmed to be the official wizard of Wall Street.
There are a lot of wizards, but I've met real wizards in Wall Street.I'm not one.But Mary, I thank you so much for the kind compliment.How can I help you?
The stock I'd like your opinion on, Jim, is one I previously owned and did extremely well for two years, but I sold it when the bottom started to fall out of it due to a class action suit that was filed early this year, I believe.
It now seems to be trying to make its way back up even though the lawsuit has not been resolved and the attorneys are still calling encouraging shareholders to come.Yeah, forget the attorneys.Let's talk.What's the stock?
With some of the profit I took after the market's great run the last few days, I'm wondering if it would be a good time to get back into the stock or if it would just be better to take a recommendation from you.What's the stock there?
The stock is Domino's.Oh, Domino's.I like what Russell's doing.I think the stock, I think, I think this quarter is actually going quite well.I would actually own this stock right here.And I thank you for the kind words.Let's go to Mark in Wisconsin.
Jim, thank you for taking my call.Of course.The new administration that's coming in is claiming that their mantra for energy is going to be drill, baby, drill. I've got a stock on the Houston Shipping Channel.
They don't drill, but they load, baby, load.Should I be adding to my shares in EPD, Enterprise Products?
Okay, I like this.It just spiked.It just spiked, but I do like EPD.I've liked it for a very long time.I'm going to double down right here.Let's go to Andre in California.Andre.
Hey Gene, long time listener, first time caller.I just want to let you know I'm a huge fan of yours and your stocks are always up 20 points in my book.Thank you.Thank you, that's very kind.You're welcome.
I want to know what your thoughts are arms holding.All right, Armour's just reported yesterday.I thought Rene Haas did a good job.The semis were under pressure today.I think the stock can go to 160.Let's go to Eric in Florida.Eric.
Hey Jim, thanks for taking my call.
Thank you.It's been a while since we've heard from Dr. Korik on Biohaven.Would love for him to come back out on the show.In the meantime, would love an update from you and your perspective on the stock.
Sure.In full disclosure, Dr. Korik's a great man and I am working on a drug with tinnitus with the company, so it's hard for me to opine.I'm going to have to take a take a rain check on that, because if the drug works, that's going to be great.
But I don't want to recommend the stock because I do have a I'm working on them for a drug that I've got that helps people with tinnitus.Full disclosure.Let's go to David in California, please, David.
I'm David from Escondido again, I spoke to you a few weeks ago and you gave me amazing advice.You told me to hold on to Cy time.I did. That's 55 points since then.Ring the bell on that by God.
Better be lucky than good.How can I help you now?
I have been in and out this stock for 30 years.I got back into it about six months ago. I want to know what you think about IDCC, Interdigital Corporation.
It's a very hard company to understand, but it's got great technology for telco, and it has forever, and therefore I've liked it.Thank you.Let's go to Menal in Georgia, Menal.
Hey, Mr. Kramer, thank you for taking my call.
I have a question regarding Wells Fargo, WSB.
Now, Wells Fargo, it was one of our large positions for the trust.We just took a little bit off letting the rest run because he's still saying it is very, very cheap.Let's go to Rich in Barna Rich.
Hi Jim.I'm a Philly guy and an extremely happy club member.Thanks to you and Jack.Thank you.Thank you.Big meeting obviously next Thursday.
So thank you.I hope you'll be there.How can I help.
Can we talk.Last time I called we talked about universal display.Oh really.And I think they just reported a good quarter but with a more conservative forecast.
The stock however has been hammered recently and I'm asking you is it now time to buy sell or hold.
Sheesh you know it is.It came down bad on that forecast and therefore I think it is now redeemed itself as a as a level that you can buy it.Remember it is still a high flyer with very high price 30 fold.Let's go to Daniel in New York.Daniel.Hey Jim.
How are you feeling.Not bad.How are you. Okay, okay.The stock I'm thinking about is a securities exchange and it typically pays a jumbo special dividend at the end of the year.I want to know what you think about CME.
Just a consistent moneymaker and I like that kind of company and I just think you just own it and Mr. Duffy's terrific and just let it run.Oh, and that, ladies and gentlemen, is the conclusion of the lightning round!
The Lightning Round is sponsored by Charles Schwab.Coming up, it's a bird, it's a plane, it's Tesla.The stock hitting a trillion-dollar market cap today.How should you approach its stunning surge?Next.
Once your stock leaves the realm of traditional valuation, you can do one of two things.
Either come up with a new way to justify the stock's valuation, or simply accept that the stock has left the orbit of the market and has become more of a totem, a talisman, if you will.
And that's what's happening right now at this very moment with the stock of Tesla, which is valued at over a trillion dollars.
With that price tag, Tesla cannot be valued through a traditional price earnings method, because right now it sells for 133 times earnings.That's impossible to justify at that price.
If it stays on its current earnings trajectory, Tesla could sell for as low as 76 times earnings in 2026.But even with that incredible generous metric, it's hardly a bargain.
You might think Tesla's more reasonable on a price to sales basis, but it trades at about 10 times sales.S&P trades at about three times sales.Maybe that can serve as some sort of rationalization of Tesla's price.I think that's a stretch.
You know what?I'd much rather just say, wait a second.Maybe Tesla's stock has separated from the traditional numbers and needs to be judged by a different kind of metric.Maybe it can't be bound by the four walls of the stock canvas.
Could it be like the Green Bay Packers maybe?Publicly owned nonprofit corporation with approximately 5.2 million shares owned by 538,967 stockholders. People own it just because they love the team.
In the last storm from the stock, each share costs 300 bucks apiece.But there are two anomalies that ruin that analogy.First, you can't sell or trade those Packers shares.You can't take profits.And second, the entity itself is non-profit.
There will never be any dividends.You essentially own shares in the Packers as a keepsake.Perhaps shares of Tesla are a keepsake to trades.You're simply buying Tesla because, well, it's Tesla, as the Packers are in the Green Bay.
Or maybe you have to develop a whole new way of thinking about the stock.And this is what I'm focused on.Let's try this one on for size.For the longest time, people bought shares in Berkshire Hathaway because Warren Buffett runs it.
Sure, there are earnings, and sometimes the earnings aren't in keeping with the stock.However, it doesn't matter.When you buy Berkshire, you're really buying a share of Warren Buffett's mind.As long as it works, well, you're all in.
Let's not kid ourselves.That is the reality.Following that logic, if you buy a share of Tesla, you're getting a piece of Buss's remarkable mind.
Of course, he has many business ventures, including SpaceX, the rocking company which also owns the satellite wireless business Starlink, or XAI, his artificial intelligence company.
But with Tesla, you're getting a self-driving company with its supercomputer brain, its ability to handle traffic of all kinds, you're getting robots, you have terrific battery technology, and arguably a runway of the world's best electronic vehicles.
More important, you're getting a call on his proven ability to create value. When you look at it like that, you might conclude that Tesla is a lot less expensive than it should be, even at a trillion-dollar valuation.
Now, here's the real kicker, at least for me.I actually believe this is the case.For the last 100 points, I've been saying Tesla cars can be bought.You can buy the stock.You can.
I don't know how much it can ultimately rally from here, but who's to say that it won't eventually go to $2 trillion, $3 trillion, given that it's powered by the greatest innovator of our era?
In other words, the valuation of Tesla is indeed in the eye of the beholder.If a DaVinci painting sold for a Monday could go for $450 million, if a Wilhelm de Kooning interchange sold for $300 million, why shouldn't Tesla be worth a trillion dollars?
What can a DaVinci do? What should a Ducuni be worth?There's a simple answer.It's worth what people will pay for it.You can't put a price on Tesla stock other than the one it's currently selling for.
As long as there are buyers at any price, including way up here, which is what I think we're seeing, then it's ridiculous to use traditional valuation metrics.You may just miss the best stock there is.
Who's to say that the DaVinci couldn't sell for $500 million?Or a share of Tesla could be at $521 and not $321. Perhaps one day soon it'll get there and we can have a whole different conversation.At the end of the day, it all comes down to belief.
Tesla's worth owning up here if you believe Musk can keep revolutionizing everything he touches.I do believe that.But if you don't believe in Musk, just forget about it.
There's no point in paying up for a stock that you lack conviction in and could be viewed as impossibly overvalued by skeptics who remain agnostic to the man and the company.
I like to say there's always bull market somewhere and I promise I'll find it just for you right here on Mad Money.I'm Jim Cramer.See you next time.
All opinions expressed by Jim Cramer on this podcast are solely Cramer's opinions and do not reflect the opinions of CNBC, NBCUniversal or their parent company or affiliates and may have been previously disseminated by Cramer on television, radio, internet or another medium.
You should not treat any opinion expressed by Jim Cramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion.
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