Cramer stresses need for investment discipline, suggests trimming high-flying winners
- CNBC's Jim Cramer on Monday stressed the need for investors to be disciplined when approaching stocks that have had major surges recently.
- "Please, one thing you have to remember [is] … bulls make money, bears make money, but hogs, they get slaughtered," Cramer said.
- The "Mad Money" host admitted he is "feeling a little hoggish" because he's not yet been able to trim his charitable trust's Nvidia position.
CNBC's Jim Cramer on Monday stressed the need for investors to be disciplined when approaching stocks that have had major surges recently.
"Please, one thing you have to remember [is] … bulls make money, bears make money, but hogs, they get slaughtered," Cramer said.
"Admittedly, I'm feeling a little hoggish right now because the charitable trust still owns Nvidia," the "Mad Money" host continued, referring to the Santa Clara, California-based semiconductor company. "Even though it's among the greatest stories ever told, the stock's had a monster run, and it's just plain irresponsible not to take something off the table, but I haven't been able to," he said.
In the past five sessions alone, Nvidia shares are up up 11.6%, based on Monday's closing price of $258.27 apiece. So far in 2021, the stock has advanced 98%, far outpacing the S&P 500's roughly 23% gain. Nvidia is up more than 1,400% in the past five years.
Cramer has been bullish on Nvidia for years, frequently touting its long-term prospects because its chips are so central to increasingly important technologies such as artificial intelligence and machine learning.
Cramer also mentioned Tesla and Netflix as two other stocks that have soared recently, even if the fundamentals do not necessarily support moves of such magnitude. Even so, Cramer said both companies have passionate fans who appear willing to keep buying their stocks.
Tesla has jumped nearly 56% in the past month, while Netflix is up 11% over that same span.
"I know these winners seem obvious and therefore too easy. But this playbook hasn't really worked in decades because the retail investor has been gone for so long," Cramer said. "Of course, you don't buy these stocks after such huge runs if you believe in any discipline whatsoever, unless it's the discipline of gaming retail investors who keep buying the stocks of companies they love."
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