Everything Jim Cramer said about the stock market on 'Mad Money,' including Warren Buffett advice, retail roundup - CNBC
CNBC's Jim Cramer recalled investment advice that the legendary Warren Buffett gave the world during the 2008 financial crisis that holds true in a coronavirus-plagued market today. The "Mad Money" host reviewed the earnings reports of Burlington Stores and Kohl's, explaining why the two department store stocks are going in opposite directions.
Channeling the Oracle of Omaha
Berkshire Hathaway Chairman Warren Buffett walks through the exhibit hall as shareholders gather to hear from the billionaire investor at Berkshire Hathaway Inc's annual shareholder meeting in Omaha, Nebraska, May 4, 2019.
Scott Morgan | Reuters
CNBC's Jim Cramer on Thursday laid out a long-term investment case in a seesaw trading environment.
The "Mad Money" host channeled legendary investor Warren Buffett in making his argument that it's tough to time a bottom but that the stock market would eventually continue its upward trajectory after weeks of coronavirus turbulence.
"Buffett always says that you should be fearful when others are greedy and be greedy when others are fearful," Cramer said, citing the Oracle of Omaha's famous "Buy America, I Am" New York Times opinion piece published in the throes of the Great Recession.
Shoppers enter a Kohl's store in Peoria, Illinois.
Daniel Acker | Bloomberg | Getty Images
Cramer broke down the quarterly reports for and department chains, doubling down on his investment thesis about the retail sector.
"You need to be off-price or online" to win in retail, the host said. "Everything else is in trouble, especially in this post-coronavirus world where things are getting a whole lot tougher for the whole industry."
The assessment remains largely intact with Cramer's outlook for the retail landscape that is evolving from bricks to clicks. Investors, he argues, should put their money behind retailers that have robust e-commerce or discount sales strategies. Big-box and discount retailers are reporting sales growth, while stores connected to shopping malls have struggled to expand their revenues.
"If you want to succeed in retail, you need to fully commit to off-price or online. Everything else is going to have a much harder time in general, especially in the middle of a possible pandemic," he reiterated. "And remember: it has more to do with the buyers not wanting these stocks than it does necessarily with how the companies are doing."
Cramer's lightning round
In Cramer's lightning round, the "Mad Money" host ran through his thoughts about callers' favorite stock picks of the day in rapid speed.
: "You're going to need a long-time horizon for that because they missed their quarter very, very badly, and it's not like this is a situation like as a or something where there's use for the product no matter what. I just think DexCom is an example of a stock that holds up rather well."
: "Oh, I like Franco Nevada very, very much."