The only intelligent way to invest that is simply not true. After a roller coaster of a day where the dow dipped 40, nasdaq lost 0. 72 sell, sell, sell. Im going to prove to you ive said this before, ill repeat again, a low cost s p 500 index fund is a great way to get exposure to the greatest wealth of our time, the stock market. The bond market has been giving a pretty good run for the money. If you dont have much capital and trying to save for retirement put that money in an index fund imagine if i came out and said, hi, im jim cramer buy index funds. See you tomorrow i mean i guess i could do that but if i really believed in them and i do i think theres more to it if youve got some mad money, hence the show, to play with, or invest if youre mad at me about saying play, you can better returns as long as youre willing to do the homework plus when you nail a stock pick you get that joyous feeling of winning the lottery and this is rigged in your favor extra incentive rather than spending your money on something fun. Want examples . Today was the day, just look at the action in the Health Care Sector where we had some huge winners. Tote of nowhere biogen is seeking approval for an alzheimers drug what did it do it shot up 26 hallelujah what made it so shocking, like many other Drug Companies theyve been working on alzheimers treatment for years this is the holy grail of medicine. Everybody, everybody has been searching for it no one ever finds it Johnson Johnson failed eli lilly failed and looked like bejoegen failed earlier too. In march they halted a drug that could stop the progress of alzheimers but how about for everybody else whos deathly afraid of getting it but earlier today at one of the most astounding turnabouts, i mean truly i would have devoted my whole morning show about this, david faber and i talked about it bioagain tells theyve done a new analysis and the drug is working. Long duration high Dose Administration is giving us all the right signs, better cognition, improved ability to ham what are known as the activities of daily life, independently traveling, personal finance so bioagain is resuming trials after meeting with the fda if the fda has encouraged hthem to proceed with the studies, its not the company doing it but the fda saying, hey, green light this could be a game changer. If this thing works and side effects are minimal it could be right now the biggest drug in history. A blockbuster to end all blockbusters, exactly when i get off the desk with ceos of the pharmaceutical industry they say it cant be done you cant reverse it no wonder why it caught fire so many analysts got burned after they said things were pretty good, theyre gun shy almost all of them rate the stock while biogen had a big move its still down 50 points down from where it was at march. Im betting some analysts will be forced to upgrade to a buy and when they do it will go higher maybe a lot higher i bring this up because lightning is never going to strike that index fund of yours it struck biogen you wont get crushed by losers. Asterisk that. I believe the odds of picking winners outweigh the odds of ending up with a loser alongside your index fund even without the new drug biogen was worth owning thats why i think the move isnt over but maybe new drug data is too random for you a more gettable example. A guy we have on, a real charitable fellow is the ceo of centene. He is the most tiff executive i know in health care. Also because, of course, his stock is incredibly cheap. Today he reported a fine quarter. Rallied. Not initially. Some people are more stupid. My mother would say dont say everyone is stupid thats not fair. 34 years of wisdom there i think its got a lot more room to run centene domestic now, as ive told you before even if Elizabeth Warren or Bernie Sanders end up in the house they dont have the votes to pass single payer take medicare for all off the table and centene has a fabulous runway fabulous finally theres uber cramer fave bristolmyers. For ages we heard their drug keytruda was beating the stuffing out of onbdivo and take with another can improve lives this is looking brighter for them one more reason to like bristolmyers. It sells 12 times next yores earnings are you kidding me ive been like a broken record urging you to trust ceo giovanni kaforia and buy the stock with these new results and brilliant management deal i think bristolmyers can perform better than the s p infection fund and 3 yield and if youre worried about a slowdown in the economy dont you think bristolmyers is what you should be buying. Skeptical that the fed will keep cutting interest rates, buy bristolmyers. I love index fund, i love index funds. Everybody should have some exposure to it but if you want to hit big try to pick individual stock as longside of those index funds. Stocks like biogen or cen many tene i think they have big upside of course, you can always end up owning losers. The good news for bristol news, bad for merck. Even if todays vicious 16 nine, still up 23 for the year. Not so bad notice i did not pick any stocks with Economic Sensitivity or trade war issues we got news from Texas Instruments. Weakness across the board was ugly and brought down the whole semi cohort afterhours. Those stocks are often too hard to own although i think Texas Instruments overdid it these gains can be yours and i do believe they will outweigh the losses and be a nice already lets just say sidekick to index funds. Anybody who lacks the time 0 put in the homework to own individual stocks but if you do have the time and willing to do the work beat the averages with a bejoegen or a centene. Tom in illinois. Caller thanks for taking my call. Of course caller i bought shares of viacom b thinking that the merger between cbs and viacom would help bring up both shares and it hasnt been the case and im wondering what is your feeling on this merger and also what is your feeling on viacom b . Is it Still Holding on for now. You cant see the show but i have a dunce cap on. The reason i do that i too like it and bought it for my Charitable Trust and feel like a complete idiot i should be sentenced to be in the corner and write on the blackboard im an idiot because i recommended it my Charitable Trust has been hurt. I felt it would be potent and really powerful combination. It oddly has not worked. Im not going to sell it but lets just say ill have to spend this whole darn period with my dunce cap on thank you for the call josh in North Carolina josh caller booyah, jim from the tar heel state how are you doing . Im doing well. How about you . Caller i am doing great. Jim, the company i wanted to ask you about today is northrup grumman. I like it. Lots of innovation i think theyve got the culling edge on a lot of things. My concern is a pullback in defense spending by the u. S. Government what are your thoughts youre from North Carolina . Why do you want to pick why do you want to pick a running back who sees who is on a team with a quarterback who sees ghosts i want you to buy christian mccaffrey. Who is it . Its United Technologies stick with the program all right. As long as youre willing to do the homework you can feel like youre winning the lottery with the right stock picks. How about the biogen how about the centene or bristolmyers. Look at todays winners. Hasboro took a tumble. Wasnt it nasty. I sit down with the ceo. He comes on even if its a bad day. Is beyond meat as great as it is and tasty as it is a little too much like gopro and lodge gitec have the ceo so stay with cramer announcer dont miss a second of mad money. Follow jimcramer on twitter have a question, tweet cramer, madtweets send jim an email to madmoney cnbc. Com or give us a call at 1800743cnbc miss something, head to madmoney. Cnbc. Com. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From finding out whats selling best. To managing your fleet. To collaborating remotely with your teams. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. That could allow hackers devices into your home. Ys and like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. I feel like i say this every quarter but what the heck just happened with the stock of hasbro its either feast or famine for those guys i ive liked it so much. The stock got hammered down more than 16 we got to look into it last time we got the sense they finally got over the Collateral Damage from the toys r Us Bankruptcy that was a terrible disruptive influence. This time they got hammered by tariffs on toys made in china and posted a 37cent earnings miss with a substantial revenue shortfall. While hasbros licensed brand dis very well and there i think toys affiliates with disney and marvel and star wars, every other division was weaker than expected you get the sense that the trade war is really making life difficult for this fabulous company. It doesnt help that wall street is skeptical of their Entertainment Division and shelling out money for peppa pig and others lets check in with Brian Goldner who has the intestinal fortitude to speak to us every quarter during good times and bad. Thats one of the reasons i like him so much. Mr. Goldner, welcome back to mad money. Hey, jim. How are you doing . Brian, i got to tell you there is a part of your Conference Call where you actually describe what its like for you and a retailer given the tariffs, i know that the analyst i got it if you explain it to our viewers, they will know that this had to do nothing with how great hasbro is, but everything with the way the toys are bought and sold in this country well, you know, we set an objective to get back to growth. You mentioned toys r us and were getting back up 5 . We said we would turn our European Business around and were doing that our International Business was up 4 absent effects with strong growth in latin america and asia pacific then weve talked throughout the year how tariffs could have an impact whether or not they were deployed or enacted. Because of the way we go to market using an assetlike system with our retailers. In essence our retailers ship in product on a direct import basis and we ship in product domestically as tariffs are being considered and just through the Third Quarter we saw several times conversation, communication and elements that would say tariffs were coming, our retailer canceled those direct import orders and then we brute them in domestically, those same inventories except the inventory is sitting in asia awaiting for a direct import pickup and we have to bring it in domestically through our supply chain so in july and august we saw shipments down in september we saw shipments rise appreciably and our supply chain working with the third party provider, an assetlike model we werent able to bring in all the product we intended to bring in and continue to work through this process. Going forward, after Fourth Quarter 2019, our teams like we always do address these issues in realtime. We have a way to go forward with our retailers whether tariffs whether enacted or not will not have an impact on the business but in the short term it did and we saw it in a reduction in revenues and increase in some expenses particularly around shipping and warehousing and thats what we were describing today. To me it made perfect sense to someone whos been in business and watched my dad sell toys, i know the whole i mean this would be something its like a second analyst youre probably the company most at the front line but i like what you said about september i like the progression can you catch up, fill the orders from september and still hit christmas strong well, look, weve said that weve come out of the gates into the Fourth Quarter strongly within our assets showing great growth we have a number of amazing initiatives coming frozen 2 in theaters shortly we launched on october 4th star wars is launched on october 4th. Were seeing very strong growth there. Our nerf business is off to a very good start as we launch nerf ultra were seeing a number of initiatives around fur real friends and cubby. Transformer, monopoly and magic the gathering also we have a number of new products coming into the holidays we said we believe we can grow in the Fourth Quarter and as we go forward, we will get through this issue related to tariffs. So, brian, how much is the is your companys bottom line or the consumers bottom line going to be hurt by what President Trump is doing well, look, i think the way to look at it, were in an engaged conversation and we want to continue to ensure we can bring great products and play experiences to consumers all over the world and were doing that we want to ensure that were bringing those great high quality products at the best possible price but if tariffs are enacted were going to need to pass on those costs to our retailers and to the consumer. We hope that it doesnt happen the prospect of it happening has interfered with our supply chain in the short term but longer term the teams are already working on great plans to mitigate that and then to put it behind us as weve done so many other issues related to the changing face of retail. Now, one of the things i love about what youre doing is that we used to look at your business as a one season business one quarter frankly and the other quarters we used to say, look, we know theyre not any good what can you do . With the addition of entertainment 1 and the thought about storytelling, you have gotten away from episodic and are going for traditional quarter to quarter strength. When will people realize that that is Brian Goldners legacy well, part of it as well is that were going to add a number of hasbro owned ips in storytelling from the family brand side which is preschool to the adult side for brands like magic the gathering and dungeons and dragons that enjoy incredible success and yet are only known to about half the world so as you tell stories on great platforms you raise the prospect for those brands and you take those brands out around the world. So also as you look at those brand, hasbro owned ip they make more on operating profit we can generate Consumer Products we generate toys and games and generate Digital Games and so our brands are more profitable than our partner brands. We talked about that a lot in the quarter. As our partner brands grow its fantastic and want to support their brands and certainly have treated their brands like our brands and prioritize their brand force the Fourth Quarter as we had issues getting through the domestic supply chain and yet we dont make as much money there. As you build the business in marriage to e1 youre able to bring more hasbro ip as along with our partner brands to the marketplace globally and we think thats a winning solution. One last question, do you think it would help or hurt shareholders if you withdrew guidance until the turmoil is over well, we dont give guidance. In the beginning of the year we talk about our belief in the year and so we did we said we could return to profitable growth. We also talked about the prospect of tariffs and what it would create in our second quarter, with our Great Results we still spend a lot of time deb thomas our cfo talked about what tariffs could represent, both the deployment as well as just the avoidance of tariffs as it would pertain to our supply chain so weve tried to give people a lot of description i just think people needed to understand in realtime what it meant but also that its a shortterm phenomena and we will move past it we have a great team and theyre ready to go. Im convinced youre absolutely right and thats why once again im so glad you came on i talked at the top of the show about where you can make money how about buying the stocks of High Quality Companies that just get completely hammered for nothing that had to do with this Excellent Team that Brian Goldner runs hasbro, mad money is back after the break. The bull market knows something is overvalued when the shorts and long as grow that a stock is into high when the lockup on insider sales is cracked before it was supposed to, cracked before its supposed to. The only one thing i need you to do, run. Dont walk away from that stock. Run. And when i say that stock, i mean beyond meat ever since the Company Started it was trading 2 in july. Nightmare its lost more than half its value down 106 today. What went wrong . The taste . No, it does need a little spice up now and then. Old bay anding, look, beyond meat frankly, just, when we got it, it never should have been that high in the first place the stock peaked when the Company Reported a Strong Quarter but also it announced a 3. 25 million share secondary including 39,000 shares owned by the ceo who is really a terrific guy, but you know what, hey, this isnt about friends, its about money. Yeah, and lock on insider sales wasnt supposed to expire until the end of the month that was premature im not taking any chances because brown wanted everyone to win on this sale he placed it at 160. That was more than 60 bucks below where the stock had been trading. Discounted and briefly beyond meat popped back up to 169 soon after. Y