Transcripts For CNBC Mad Money 20171127

Investment versus a weak one and what happens when the facts change tonight im going to show you in real terms what can go right and what can go wrong, because i want to teach you how to learn from both my wins and my mistakes so you can replicate the wins at home, but avoid the losses. These are all taken from real Life Investments made with my Charitable Trusts. Where we document every trade in realtime so we know what went through the minds of both jack moore, our Research Director and myself contemporaneously. As we tell you what we would do before we pull any trigger. So often were restricted because if i mention one of the portfolio stocks on air on cnbc, the trust is frozen and the trust cant take action. But we can tell you what the trust would have done. Sadly, because of the restrictions the trust really cant do as well as you might be able to do with the bulletins but these lessons we learn tonight, they encompass all the moves we did make and couldve made. Ill share you the gritty details. I wanted to fill you in on the misjudgments that lead to losses and correct thinking that leads to gains. First, let me describe the the process by which my capital trut works. I set it up as a way to keep my hand in the stock market. Its designed so that any profits whether from Capital Gains or dividends go to charity enabling me to give away more than 2. 5 million since we started. Its had many Portfolio Managers and Research Directors and weve always worked hard together. Its a true collaboration where decisions are made when both the Research Director, jack moore, and stephanie link now Portfolio Manager tia a huge money manager and still a regular in both Halftime Report at closing bell. We try to run a diversified portfolio seeking out the best ideas for value, income and growth. We divide the portfolio into these segments and rank the stocks within them so members who subscribe to the newsletter can pick the stocks that fit their needs. I didnt give up the lucrative world of ledge funds where i had been for 14 years before that where i imagined to gain 24 per year versus 8 for the s p 500 after all funds for a less world for the sake of pain and suffering. I wanted to show you how real Portfolio Managers think with the open hand when they make decisions. You can see how the sausage is actually made. Unlike the way these Money Managers present themselves on television. I put it like that because when i see Portfolio Managers on tv. They never seem to make makes or do anything wrong and ive seen thousands and thousands of interviews. Thats just unrealistic. I think their mock profession is very discouraging. As theres no way you at home could ever do things right so you might as well give your money to a rowbow adviser or index fund. Of the many misconceptions about me is the most wrong is i dont favor index fund. I said all your investing should begin with index fund because im so in favor of diversification. I am also a Firm Believer and always will be that if people want to own individual stocks and they still do, although in increasing numbers this year, they should have the tools they need to help them and they need to understand what makes for a good stock pick versus a bad one. Why would you ever want to own an individual stock . Because if you use a fund that mirrors an index youre accepting the mediocre portion of the index as well as the good portion. You also have incites that are useful in investing and can be parl layed into excellent decisions. This didnt use to be such a radical idea. The notion that individuals shouldnt own individual stocks is really only come into prominence in the last decade and a half. They come armed with all sorts of statistics. But they never seem to be able to put a nail in the coffin of the individual investors right to research and pick stocks of their own liking. They cant refute that takes terrific thing to do and think to be able to choose when you want to pay your taxes by selling or not, they dont extoll the virtues of not having to report to other investors, something that hurts longer term Decision Making in virtually every hedge fund and mutual fund out there. Thats why the Money Management does you such a disservice on television. Their seeming perfection, say toxic brew for do it yourselfers, even as brokage houses leads to positive conclusions. Recently weve taken a much more club approach to a membership where we conduct forums to help his each other with ideas. Do we have any imperical evidence that individual investing works beyond my window record as a professional, is it all arrogance to think that you can do it yourself and you shouldnt check some boxes and send your money in to someone whos either knowledgeable but wont talk to you or is lacking in knowledge but has a handbook of answers or for that matter is just a machine all i know is that when i worked at Goldman Sachs advising wealthy people, i was astonished at how often they crushed the market simply by looking at companies and making decisions based on how those Companies Might do. That was a time when we have far less information than we have now. Information is more perfect these days meaning everyone seems to have equal access to it not just people that could roam around the Goldman Sachs Library Getting the most up to date reports. I watch people clobber the market regularly and ive always therefore resented those who tell you that you cant do it yourself. I saw it with my own eyes. Doesnt it bother you to be told that youre basically a fool and an idiot if you try to manage your own money it bothers me. For me its like going to home depot, asking a question among the orange apron sales people and being told, sorry thats only for the pros and not for the do it yourselfers. I would find that to be stupid and arrogant judgment. You should feel the same way about those that tell you cant do it yourself, the only real difference is the home depot arent trying to get your money, whereas all the people who try to hype their own prowess are driven by the desire to get you to surrender your assets to them. These pros arent questioned about their motives which would be fair to be quite rude. So they always look like theyre acting in your best interest and they might well be. But heres the bottom line. Lets say you actually do, lets say you have the time. Lets say you have the inclination, lets say you have the desire to do it yourself, lets say you want to save money not pay a percentage to someone who may not be better than you are when that percentage can add up to big numbers over time. Then you know what this show tonights show, its for you. Beth in connecticut. Caller jim, for my ira i have a 15 year time horizon, is it okay to be all in a diversed stock portfolio like the s p 500 index . Yes, absolutely. Thats exactly, beth, what i would recommend. I think thats a great way to handle it and i think thats exactly what you should do. Nick, in arizona, nick caller jim, i wanted to add a shot boola. I had a question about all with all the recent mergers and acquisitions have been going on, how does one maybe try to look for the next possible acquisition or how do you position yourself to maybe make money . You tend to look at the sector and see when the sector activity like in the food groups or the telco group. You look at the ones that seem to have dont have enough bandwidth to be bigger and someone else could gobble them up and therefore raise their numbers. Thats really the pattern that ive used over multiple users. Ben in florida caller hey, jim, thank you very much for everything you do. I listen to podcast every morning on my way to work. Thank you. Caller i just have a quick question. Eye called before and you blessed my diversified portfolio and i now i need on how to adjust my cost basis when trading around a position . I usually dont like unless the stocks gone up 25 , i dont want to take any off. Stock goes down, say, 20 , i buy back the stock that i took off, its in a bunch of my books. You know what . These days for excellence, im actually discouraging a lot of trading. I dont want to have too much trading because the trust doesnt want to incur the fees but it certainly makes sense if the market has a big spurred up and your stock went up with it to take a little bit off the table. Ready to take your financial future into your own hands and tonights shows for you. Ive got the lessons you need to know to get ready to do it. Plenty more mad money ahead. Give me great place for speculation but theres four rules you need to know before you ever buy one. Make sure youve got them. And its one of the worst possible actions you can take when it comes to your money. Ive made it myself and now i want to help you avoid it. Find out if youre at risk and my cautionary comments when it comes to investing in commodities so stay with cram r crammer. Announcer have a question, tweet cramer. Miss something head to madmoney at cnbc. Com. Jim emojis. [vo] progress is an unstoppable force. The season of audi sales event is here. Audi will cover your first months lease payment on select models during the season of audi sales event. Im here to talk to you about how at t gives you more. And so am i. Like how when you buy the amazing new iphone 8 you get another one on us. See we give you more phones and more spokespeople. Are you guys doing a spokesperson thing right now . Yes. Awesome, can i be in it . Well, its kind of like a twophone deal. So two spokespeople. Got it. K. Thanks. At t its time for more. Its time for more. Buy the amazing iphone 8 at at t and get a second one to gift, on us. Right in the heart of the was in his financial crisis, and saw his portfolio drop by double digits. It really scared him out of the markets. His advisor ran the numbers and showed that he wouldnt be able to retire until he was 68. The client realized, i need to get back into the markets i need to get back on track with my plan. The Financial Advisor was able to work with this client. Hes now on track to retire when hes 65. Having someone coach you through it is really the value of a Financial Advisor. We thats why at xfinityic. Weve been working hard to simplify your experiences with us. Now with instant text and email updates youll always be up to date. You can easily add premium channels so you dont miss your favorite show. And with just a single word, find all the answers youre looking for. Because getting what you need should be simple, fast, and easy. Download the xfinity my account app or go online today. This show tonight is all about learning from my mistakes and from what i got right from my Charitable Trust. Were starting from the proposition that you do want to do it yourself, meaning manage your own money and what i would hope you do with this show is help yourself to try to figure out if you can actually do it on your own or maybe its just too difficult and you got to send it to someone else. Thats okay. No sin. I want to start way classical stake, the choice of stock in the company is t self. Lesson one has to do with investing in drug stocks and its a sobering one from anyone trying to profit from pharmaceutical innovation. We started from a simple proposition, find companies doing break through medicine with Something Special in the pipeline which could move the needle in a very important way. The idea behind this investing came about from something that happened to me in the late 1980s before i started my old hedge fund, merck the greatest Pharmaceutical Company in the world because of its magnificent rep constitution of new drugs has pioneered work with the Harvard Medical School that showed a link between heart attacks and cholesterol. But wall street was sceptical both the linkage and the category therefore it was considered to be an unimportant new drug. Little did they know that statins would become the greatest selling drugs in history. I can recall merck doubling the stock, just doubling when the sales came through and ever since ive been looking for the next drug. Thats very important because what you want to avoid say company that has only one or maybe two drugs in the pipeline then one day might or might not be approved for use by the fda, anything like that could be too risky for you from the bioteches with know this. The ones that never got approval and ended up limping along forever until they were put out of their misery. Ive had tremendous success isolating these kinds of companies, the good ones whether its bristolmeyers, or regen region with its terrific drugs. Its one of the most important kind of stories you own and you should always be on the lookout for the breakout. In the last few years, my Research Director jack moore and i have found two situations that fit the rubric. Now there are couple things you need to know about alzheimers. Millions upon millions of people suffer and will suffer from it. Second is there is no serious treatment that can hold the disease off or maintain it at acceptable legal. Third is many have tried and failed to find a cure but fourth and most important, if you have a medicine that can reverse brain plaque it would be the biggest drug in the history of all time. Billions of dollars at stake. The companys had the best success so far is eli lilly, the indianapolis giant and weve gone to hear them several times over the years as they reported on the progress of the drug. We select it for the Charitable Trust. A good Balance Sheet and nice size dividend. In other words, when we purchase the stock in the high 70s we had excellent hopes it would reveal data points that showed some definitive success in its battle against alzheimers. But in the past few times the firm has spoken about the drug we diabeticed a more prolonged set of obstacles. When lily spoke not that long ago we sensed less optimism on the drugs prospect. We werent alone. The stock drops to the low 70s after its presentation of some of the findings of the drug. Out of frustration, the trust sold eli lilly not happy with how long it would take for this alzheimers story to play out. We took a loss. There are four lessons here. We were dead right to be sure we had the upside of the other drugs, the reputation of the firm and the good dividend. It allowed lily stock to bottom. It contained our loss so lesson one, if youre going to speculate make sure theres something to fall back on. Lesson twos trickier. The stocks bounced back. There were other drugs in ther and it didnt discontinue the work on the alzheimers drug, that meant the stock bounced and bounced hard after we sold it. So your takeaway, if you did enough homework to do eli lilly has enough in the pipe away from the drug, to keep the earnings up basically, you didnt need to sell the stock when this one drug didnt pan out. At the very least you couldve waited for more of a bounce and sold it at a higher level. Really surprised that we did this big mistake by me. Third lesson the time to buy a stock with potentially amazing drug is after people have given up on it but before the trials are discontinued which often happens. Thats when expectations are at the lowest. We took a swing at louie. Rather than waiting for down series of days that rained havoc on the Drug Companies or the dying down of any talk about the medicine which is maybe works maybe it doesnt. That was the investor event where it was talked about first, the one really intrigued us was very well attended. We were far from alone when we bought the stock so therefore we paid too much for it the trust overpaid, was far better to wait until it was top of mind for any investors and that would have been just a few weeks after the meeting. The fourth and final lesson. When youre investing in a drug Company Going after a disease like alzheimers, be more sceptical than youd be with a disease thats easier to treat and this happened with bio gen too. So many Drug Companies have failed trying to fight alzheimers that its way to ar gant to bet youre on the right path with any one Company Research department. When youre going to invest in a company with the potential cure for an intractable illness, make sure that the drug company youre investing in has multiple drugs away from it in the pipeline and a good Balance Sheet as well as a dividend to protect the downside. Second, the drug doesnt initially worked but it hasnt been written off except a bounce, a better time to sell. Dont buy the stock when its still a ton of hupla about it. Wait until the fuss dies down and you get a better price for the stock. When you have a drug company up against a difficult disease that many others have failed to cure, please be more sceptical. There is a reason that others fail. Its an incredibly difficult problem to solve. The company you like might fail too. Investing in biotech can be a challenge. Still more mad money ahead. Ill help you avoid a rookie mistake that plagues many investors including me. And its time for me to take on my biggest challenge of all, your tweets. Im answering the questions youve been sending jim cramer. Love the show. We really appreciate you out there man. I know you hear this all the time, jim, but thank you, thank you t you so much. This has been my best year by far and away in the market. I just want to thank you for looking out for the regular guys out there. Im trying to teach people to be better investors. Thats the goal here. Great to hear your voice and know that youre there for us. You always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Your bbut as you get older,ing. It naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Tonight im teaching you the difference between right and wrong. Sounds like a tall order but since im a stock guy, when i say right versus wrong i mean whats smart versus whats dumb in the context of investing and in the limited world of the stock market, right is whatever makes you money without breaking the law while wrong is whatever loses you money. As an investor, the easiest thing in the world is to tell the difference after the fact. Its much harder to get things right in the moment when youre emotional. Thats why i want to educate you by looking at some of the moves mad by my Charitable Trust which you can follow along by subscribing. The idea behind the newsletter is we can help you become a better investor. We make our own moves not to mention telling you what wed like to do in an ideal world if the trust trades. Fortunately these bulletins give a terrific glimpse at how we were thinking at the time, we meaning my Research Director jack moore and i, which allows us to learn from our moves and make judgments about what we were doing at that moment that was so darn wrong. You can afford to be patient with the well researched idea that you personally like. You dont have to punt or dump the stock. You dont have clients breathing down your neck who get angry if youre not making the money quarter after quarter, month after month, even day after day. Im like a hedge fund matter unlike a hedge fund matter, you can wait for it to play out. By its a big mistake to forget that fact something we did when the Charitable Trust bought tyson foods back in the 40s rank in 2015. Jackhad done a considerable amount of homework on tyson. Which you might recognize as the maker of ballpark francs jimmy dean sausage. We wanted to be early to get in before everyone else realized the transformation that would cause a rerating so to speak of tyson. Meaning shareholders would pay more for the stock because it was a stronger less erratic earning streak. Now it trades as a full line food company. Then the consensus what we call it meaning that what the analysts who follow the company were expecting the company would earn when it reported. There was just one problem. The whole share merger came together more slowly. The result when tyson reported the street was disappointed. And you know what happened instead of raising the numbers as were so used to after these deals, numbers were cut. I didnt see us as being early, i saw us as being wrong and we told subscribers that we had screwed up. So when we had the Charitable Trust cut its losses they were small because we bought the stock right. However we did give up too soon. Sure enough the next quarter we saw the very gains and tyson never looked back to a way to a 50 gain from where we sold it the house of pain. We had had faith that the situation would totally work out in the end but we didnt have faith in ourselves in our own homework. We didnt have patience. We were too sceptical and the Charitable Trust missed out on a huge win. And if we didnt already vay position in tyson, probably would have taken one. There was no reason to take the action other than our own disgust that we did. Thats never enough to justify disavowing what ended up being a terrific homework drive payoff. We were angry and bummed. How about this one this was a doozy. We had come to love the work of former ceo fits van patrick and thought he had tremendous operating skills, a lot of them to turn this into domestic chain into a worldwide powerhouse. Fritz had a Shareholder Base that was unhappy with his progress. Even if we thought the world of him, when the Company Dismissed him, the stock fell and we were totally mistified. Not long after starwood stock took over on a takeover rumor. It bolted from the 60s to the 80s. We managed to sell some, which is always a smart move. Starwood dropped back to the mid60s where we got a takeover bid from marriott, which failed to generate much report and the stock fell. It stayed low. It kept going lower. Starwoods one of the most painful position the trust had in a very long time and we werent sure what to do. We decided to hold on to it until the pain got to be too great. Fell to the 50s. First, whenever you get a bid, id like to be able to ring the register. I thought the stock had to go higher, not lower. That was a bad judgment. However, second we ruled out the possibility that another buyer who had like starwood in the 70s would still like it now that it had fallen to the 50s. So when the stock had a little bit of move up back to the 60s, we booted it. Big loss. Mistake number two, not long after the Chinese Hotel came in and offered a premium bid for starwood. We watched helplessly as they got into bidding war. We left 15 bucks on the table. We should have been patience enough to wait for something good to happen. We believed in the synergy. We had to stop caring that we missed out on higher prices. We had several options. We could have bought more as starwood fell. We failed to do so. We couldve bailed when we first got the takeover news. That would have been made sense. Afterall were not arbitrators. We couldve held starwood and would have been rewarded. We didnt do any of those things. Dont act on emotion, dont go against your homework. If you think a stock deserves to go higher or anything else that would produce a great gain then wait. No ones looking. You can afford to be patient. Dont give up on your best ideas before they have time to pan out and dont give up on yourself. Eric in texas, eric . Caller hey, mr. Kramer. A big san antonio bulia to you. I have 50 stocks in my portfolio and theyre all dividend payers, they yield about 2 1 4 . Other than the paid out ratio, can you please tell me what other metric i can do to ensure my dividends are safe . We have a cash flow analysis. The book is available and its a very indepth analysis of how to calculate the cash flow which is more important than the earnings per share in terms of trying to figure out whether the companys dividend is safe. Tom in new jersey, tom caller hey, jim, thanks for taking my call. Sure. Caller a week or so ago you had mentioned that if you got a portfolio of about 10,000 you should have a basket of stocks of about five stocks. Right. Caller if that portfolio grows with the help of mad money to like 100,000 or even a million, who would be the number of stocks that you would suggest to be comfortable with what the problem is to really follow a lot of stocks, we follow a lot of stocks because theres two of us, we do a huge amount of homework. Most people have a very hard time following more than ten stocks and thats the max that i would tell you, you can handle. And thats it. Right and wrong in the investing world can be a lot tougher than black and white but when you avoid making emotional decisions and rely on the homework and the homework that youve done, ill bet you have positive results. Theres still much more mad money ahead including what you must know before investing in any energy stocks. This is required material. You know i always tell you to lock in profits but there are some times when selling can be just plain wrong. This is the most interactive show on the planet for a reason. Your mad tweets are coming up. So stay with cramer nah. Not gonna happen. Thats it. Im calling kohler about their walkin bath. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] hmm. The kohler walkin bath features an extrawide opening and a low stepin at three inches, which is 25 to 60 lower than some leading competitors. The bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. Kohler is an expert in bathing, so you can count on a deep soaking experience. Are you seeing this . The kohler walkin bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. Everything is installed in as little as a day by a kohlercertified installer. And its made by kohler americas leading plumbing brand. We need this bath. Yes. Yes you do. A kohler walkin bath provides independence with peace of mind. Call to save 500 off bath walls with your walkin bath, or visit kohlerwalkinbath. Com for more info. Mr. Cra welcome back, tonight were learning lessons from my Charitable Trust. Both the good and bad so you can be a better do it yourself investor. Lets delve right back into some costly mistakes i made when oil price peaked. Frankly theres so many mistakes here. First, when youre investing in commodity stocks you Must Immediately recognize that it doesnt matter which one you hide in, kberl, worse, better Balance Sheet, when the underlying commodity gets hit, theyre all going lower. I tried to buck this principal by adopting a high growth, deep value strategy where the Charitable Trust bought the highest Quality Company which in this case was eog and the one that i thought had a h the most takeover hopes, marathon oil. I was wrong on both counts. The house of pain. First, even eog had the best properties and the basis, ones that actually made money when oils in the 30s, nobody cared. Oil stocks traded like they were all parts of an etf and no one cared that eog might have been better or worse than others in the etf. Every one of these oil stocks with the exception of exxonmobil, had spent too much money. Marathon was worse. Heres a company that decided to split off its refining and marketing divisions from its Exploration Production business. At what amounted to the top of the cycle in crude. Without that refining cushion, marathon was about as vulnerable as any of the cash strapped independence. We saw the stock plummet from the 20s to the high teen before we booted it. Fortunately we dodge the trip. Unfortunately the trust took a major loss which did not endeer us to subscribers. It wasnt all that bad in the oil patch because we had had some foresight when it came to the combination of morgan at the entity ceo rich kinder put together. Even though i had written up rich kinder in get rich carefully, and even though he had repeatedly insisted that his company was more of a toll road, he was the first major ceo to slash his istribution, which effectively revealed how Kinder Morgan had much more than toll road exposure. That should have been the sign that the group had become unstable and their yields were unsafe. Yet after examining the group to see which company could maintain its yield, we went right back in. We bought Energy Transfer partner because it was rapidly expanding its footprint. Not long after this the stocks spike, and i was able to offload a considerable part of the trust position but not all of it. Oil plunged. And while we only battled it buy and some low, it was not one of the trust finer moments. The moral, dont think that you can outrun a commodity grim reaper even with a derivative situation and theres no such thing as a toll road that you dont have to worry about even though i thought there were regardless of the price of oil. If oil goes down, something does happen. Companies dont pump enough and if they dont pump, they cant pay the Pipeline Companies or they dont need them and those very high yields could be a loser. One of the hall marks of the Charitable Trust since ive been working with my current researcher is that we let the best ones ride. We doesnt take shortterm gains on our winners when we think theyre worth a great deal more than theyre selling for but there are times when one of our stocks rally so far that we do have to take action and that was the case of the 50 gain that we had in starbuck stock. Near the ends of 2015, starbuck stock shot up to the 60s. At the same time its Earnings Growth was about 17 . You can pay up to twice the growth rate before you get overvalued, we felt that this run had happened too far and too fast and would begin to attract sellers and the first sign of any flagging growth so we decided to ring the register in this long time core position. Starbuck reported an ever slight deceleration and the United States next quarter. Nothing all that. The stock fell and it fell hard. Losing more than ten points almost instantly. It was no longer zpensive so we started to rebuild the position. It was a smart move because its a rare stock that can equal the height that comes with a 30 price earnings multiple and even the great starbucks wasnt one of them. We bought it for the Charitable Trust back in the low 80s because we liked the changes being made after the overseas purchase. We recognize the company wanted to do more acquisitions. In late october walgreens announced the acquisition of riteaid. I had very little faith that this deal could go through quickly with the hardened attitude of the justice departments antitrust division. So we sold as much as we could before the stock started coming down. It was a huge win and walgreens got clocked back to the highs. Were we able to replenish the position i only wish we had the same foresight with regard to alleren. A pharmaceutical with an overseas mail drop that was able to pay much lower tax rates than it had based in the u. S. Was being bought by pfizer for 360 per share. The stock didnt trade that high. The government issued regulations regarding these tax inversion deals. Regulations that pfizer had followed closely. The two companies crafted the deal to meet the terms laid out by treasury for approval. But then the government totally changed the rules on the Companies Making it so this very specific deal was totally spiked. I didnt see it coming. And aller again quickly shed whup points. What did i do wrong . I trusted the government to keep its word. Love it. Didnt see it coming and allergen shed those 100 points. I dont think theres necessarily a reason to believe that any deal is going to be a given going through, especially one that is now politically unpopular. Yeah, i trusted the government to keep its word. Meanwhile the government claimed there was no word even offered and pfizer and aller gen were acting as rogue. Thats not true. The government changed the goalpost. I was greedy and the bottom line is that in this business greed is just plain bad and dont let any one on or off screen tell you otherwise. Mad moneys back after the break. What we do every night is like something out of a strange dream. Except that the next morning. It all makes sense. Fedex powers Global Commerce with vast, farreaching networks. Deep knowledge of industries. And, yes. Maybe a little magic. Most of tonights show im talking about what you can learn from the mistakes ive made running my Charitable Trust which you can follow along. Its a club feel to it. But now lets talk about what you can take away from some very specific wins that did defy the odds. And the first is facebook. Its hard to remember when facebook was considered this Disappointing Company that was failing to live up to its potential. This stock was viewed as a real loser for the first year or two. How a bunch of smart people could be so baffled by this change in the way we consume information. Didnt they know better. I watch the stock get pummeled and saw famous peoples names give the stock a boot. Im a huge reader. So when facebook was trading in the 20s, it was a really good quarter. As the company made a switch, you could tell that the advertisers were flocking to it. So many people have been blown out of the water by facebooks disappointment that they were in no mood to listen to the positive story. Given we didnt have a position in the stock, we didnt feel scorn. How were we able to hang on . Each quarter showed such an improvement in the numbers that the stock price wasnt expanding. You were simply paying the same amount for different Earnings Growth. Theres pa nerra bread. The ceo ron shake has come under fire repeatedly. Shake said the lines were too long and you were basically standing in a mosh pit, his word not mine. He said he was going to change all that and do a top to bottom renovation. When a restaurant chain decides to do a makeover. If the rollout is successful if one part of the country, itll work in other parts to. So it made the Charitable Trust number one pick among our holdings. Sure enough the rollouts a smash hit. The stock had a great hit. Thats the power of a restaurant reno. Finally, apple. And since the death of steve jobs whether its deteriorated. So many people seem to believe that the best days are behind it. I see apples reinventing itself from a the Service Revenue stream. I see that stream is easily augmented by the acquisitions. I see the iphone franchise not being nearly as global as it could be. There seems to be a bias against the stock that stems from apples own past success. The stock is spoiled us because the iphone of seems like it can never be made better. Just because the Service Stream which currently comes from the fees used to backup your pictures in the cloud, seem like theyre back door into a Service Revenue stream doesnt mean it should be dismissed. Who cares how apple got there . The Service Revenue streams go into transform apple into much bigger. Thats why ive been saying that apples stocks should be owned and not traded. The wall street becomes frustrated when the stock stalls. You can take the long view if they bolster the Service Stream. The bottom line, solid growth stories are hard to come by and when you find them you need to hang on to them for the wide. Dont switch out into inferior merchandise simply out of frustration or boredom. Stick with cramer. You always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Why did you take Credit Card Debt on . Second kid. Private school. Medical bills. Moving costs. Solid ground. A personal loan from sofi is a smart way to consolidate Credit Card Debt. Certain borrowers cut their credit card Interest Rates 42 and increased Credit Scores 17 points on average. Borrow up to 100,000 with low rates and no hidden fees. Find your rate in just two minutes, and take on your debt at sofi. Com. Time to take some questions from the smartest viewers in television. If you got one for me send it over jimcramer. Heres one for what advice would you give to someone wanting to day trade in this market my advice is unless you want to quit your job and do nothing but scare at your screen please do not do it. Its way too dangerous and even then i dont think that people will have enough edge these days and the markets too thin to really do well and the algorithms are really in charge. Dont do it. Next we have a tweet, what should i read after i finish confessions . I want you to read one up on wall street by peter lynch. Its available on amazon and itll be a great read and get you involved in trying to figure out how what you can see turn into what money you can make. We have a tweet from ksdn j1 whos asking me about my garden . On my way out, ive never gardened before. I like to buy some seeds, particularly for radishes and for oranges but for radishes and carrots and definitely for beans there we go. Other than in beans. Look at that. Nice looking guy. But heres the thing. When it comes to tomatoes that i get from home depot ive had success. I do want to thank some of my camera peoppeople like frack whe me good seeds that worked very well. Thats frack. He gave me seeds. Im not kidding. He did and i thank him. Now we have a tweet, thank you for being so nice to my friends visiting the city. You made their day. I always tell people im so honored that i have a show and they bothered to even watch it so, yes, if you come up to me and you want to take your picture with me, i am more than happy to do it particularly on the floor of the exchange. People are always amazed that im nice. Am i supposed to be mean its not like youre taking a picture with George Clooney in some movie about money. Anyone see that one . Next up, he asked, thoughts on trend of some restaurants charging more, paying employees more and banning tips. I dont know. From my small plate mexican restaurant, if you ban the tips, you ban the good people from working there and thats not the way to maintain an establishm t establishment. So why dont you stick with cramer for your heart. Your joints. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. Wow record time. S. At cognizant, were helping todays leading Life Sciences companies go beyond developing prescriptions to offering subscriptions with personalized, realtime advice for lifelong, healthy living. Honey . You almost done . Nope. Get ready, because were helping leading companies see it and see it throughwith digital. A bull market some where. I try to find it just for you on mad money. Im jim cramer. Ill see you next time. Welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. If they hear a great idea, theyll invest their own money or fight each other for a deal. This is shark tank. A guiltfree version of a favorite treat. Hi, sharks. My name is gabe wolff. Im ani blinova, and were from stamford, connecticut. Our company is wink frozen desserts, and were seeking 300,000 in exchange for 15 equity in our company