Jim Cramer's 'Mad Money' Recap: Stick With the Best-of-Breed Stocks
NEW YORK (TheStreet) -- Stop playing themes and start investing in best-of-breed stocks. That was Jim Cramer's advice to "Mad Money" viewers Thursday.
Cramer said if investors only read the headlines, they'll never understand the markets. One day tech stocks are good, the next they're bad. Oil is good, but then oil is bad. Housing is horrendous, but then it's fabulous.
That's why it's more important than ever to pay attention to individual companies, in particular those that are executing well. Investors only need to look at Caterpillar
Cramer said a better way to play construction would be with United Rentals
Other examples of bad execution include Diamond Offshore
From airlines to chemical to even the home builders, Cramer said some companies get it while others clearly don't. Which is why investors need to continue doing their homework and stick with only the best-of-breed players.
In the "Executive Decision" segment, Cramer once again spoke with Ellen Kullman, chair and CEO of DuPont
Kullman said DuPont is now splitting into two world-class companies. One will be a company dedicated to new and novel applications of science, while the other will remain a strong, industry-leading chemical company with high margins.
One example of science in action is DuPont's insecticide business, which now tops $900 million in annual sales after just five years. Meanwhile, on the chemical side of the house, Kullman said she sees the market for TiO2 stabilizing.