Mad Money w/ Jim Cramer — December 9, 2025

Host: Jim Cramer
Podcast: Mad Money w/ Jim Cramer (CNBC)
Episode Theme: “Rules of the Road” — Jim Cramer’s essential investing rules to help listeners navigate the stock market, avoid common pitfalls, and maximize long-term gains.

Episode Overview

Jim Cramer dedicates this episode to sharing his time-tested investing rules and discipline tactics. The episode aims to equip listeners—whether novices or experienced investors—with critical strategies for building a high-quality portfolio, reacting smartly to market volatility, and avoiding classic mistakes driven by emotion, hype, or poor analysis. Cramer focuses on themes like “best of breed,” portfolio discipline, the importance of understanding what you own, avoiding emotional pitfalls, and handling winners and losers.

Key Discussion Points & Insights

1. The Importance of Discipline and “Best of Breed” Investing

[01:47 - 06:01]

• Discipline is Paramount:
  • Cramer stresses that investing is about discipline above all: “You’re going to make mistakes in this business, it’s inevitable. But if you stick to your discipline, if you stick to the rules, that should help you minimize your losses and you will maximize your gains.” [02:58]
• Buy Best of Breed, Even If You Pay Up:
  • He uses the analogy of buying cars—you wouldn’t buy “worst of breed,” so don’t do it with stocks.
  • Avoid the lure of penny stocks and meme stocks; go for industry leaders like Procter & Gamble or Apple, even if they look pricey.
  • “If you go hunting for cheap stocks or low quality companies, it’s more likely to lead to losses than to gains.” [03:33]

Quote: “Don’t be afraid to pay up for best of breed stocks... you’re also buying peace of mind.” — Jim Cramer [06:01]

2. Valuing Patience and Recognizing Value

[06:01 - 10:15]

• Don’t Give Up on Quality Companies During Dips:
  • Cramer recounts calling Apple a buy at $23 (adjusted) when others gave up, leading to superb returns.
• Nvidia as a Model Example: He highlights Nvidia as his best investment ever, thanks to patience and ignoring negative noise during rough patches.

Quote: “Patience is a virtue. Giving up on value is a sin.” — Jim Cramer [09:38]

3. Lightning Round: Portfolio Construction & Valuation Metrics

[10:15 - 13:15]

• Diversification Rules:
  • Recommends at least one stock outside of tech for diversification.
  • Suggests younger investors emphasize index funds alongside personal picks.

Cramer on valuations: “I want you to do the PE ratio both next year and the year after. I don’t care that much about this year... I want to be able to be in a stock like Nvidia because it has very good out years even though it looks expensive near term.” [11:10]

4. Watching the Bond Market and Key Company Moves

[14:19 - 20:53]

• Always Watch Bonds:
  • Bonds provide critical signals for stock direction (e.g., interest rates, inflation).
  • Ignoring the bond market is a recurring investor mistake: “Bonds can punch your portfolio in the face if you aren’t paying attention.” [15:47]
• Executive Resignations as a Red Flag:
  • Sell immediately when senior executives (CEO/CFO) resign unexpectedly—“Shoot first and ask questions later.”

Quote: “When the Chiefs resign, so should you.” — Jim Cramer [17:33]

5. Realistic Expectations, Corrections, and the Dangers of Hope

[22:16 - 32:29]

• Prepare for Inevitable Corrections:
  • Treat market pullbacks like rain: be ready with some cash on the sidelines.
  • “Best time to worry about a correction is when no one else is concerned.” [23:48]
• Market Oscillator Tool:
  • The Market Edge Oscillator (+5 overbought, –5/–10 oversold) helps guide when to raise cash or buy the dip.
• Hope Is Not a Strategy:
  • Don’t hold losing positions out of hope—switch to stocks you believe in based on reason.

Quote: “Hope is emotion, pure and simple. This is not a game of emotion, or at least not your emotions.” — Jim Cramer [27:25]

6. Know What You Own and Be Sceptical Online

[32:29 - 39:42]

• Explain Your Picks:
  • Be able to explain any stock pick to another human. If you can’t, you haven’t done your homework.
  • “If you don’t actually know what you own, believe me, you’re going to get slaughtered on the next decline.” [33:59]
• Skepticism of Hype:
  • Beware of Wall Street promotion, SPAC hype, and money managers talking their book on TV or the web.

Quote: “If a money manager is on TV and he’s moving his lips, he’s probably talking his book.” — Jim Cramer [37:33]

7. Handle Losers and Takeovers Rationally

[39:42 - 44:14]

• Never Subsidize Losers with Winners:
  • Do not sell the winners to hold onto losers—sell losers, take the loss, and move on.
• Avoid Takeover Lure on Weak Companies:
  • Only speculate on takeovers if fundamentals are strong; bad companies rarely get bought at favorable prices.

Quote: “Never subsidize losers with winners. If you need to raise money... take the loss and sell something that’s underperforming.” — Jim Cramer [42:13]

8. Rapid-Fire Questions and Listener Mailbag

[44:14 - 46:21]

• Profit-taking:
  • Once you’ve taken out your cost basis, let the rest ride for potential upside.
• Battling a Losing Stock:
  • Cramer outlines his pyramid strategy for buying more at lower levels if he still believes in the company.
• Stocks for Kids:
  • Tech and healthcare (Nvidia, Apple, Johnson & Johnson) for long-term growth.

Quote: “Own it, don’t trade it. Those are my best of breeds. I got to be there for those.” — Jim Cramer [45:51]

Notable Quotes & Moments

• “Patience is a virtue. Giving up on value is a sin.” [09:38]
• “Hope is emotion, pure and simple.” [27:25]
• “When the Chiefs resign, so should you.” [17:33]
• “If a money manager is on TV and he’s moving his lips, he’s probably talking his book.” [37:33]
• “Never subsidize losers with winners.” [42:13]
• “Own it, don’t trade it.” (on Apple and Nvidia) [45:51]

Practical Investing Rules from Cramer This Episode

• Buy best of breed stocks—even at a premium.
• Don’t abandon fundamentally sound companies during downturns.
• Diversify outside of tech; hold some index funds.
• Monitor the bond market and 10-year Treasury yields continuously.
• If CEOs/CFOs exit unexpectedly—sell immediately.
• Always keep some cash for corrections—market downturns are inevitable.
• Prepare to sell some holdings when the market is “too hot” (+5 Oscillator) and buy when deeply oversold (–5 or –10).
• Be able to clearly and simply articulate your investment thesis to another human being.
• Be highly skeptical of internet/TV hype and promotional campaigns.
• Do not sell your best stocks to keep your losers—cut losing positions.
• Speculate on takeovers only with strong companies, not poor ones.
• Explicitly avoid hope-based decisions; use rational analysis.

Segment Timestamps

• [01:47] – Opening Remarks & Discipline
• [03:33] – Best of Breed vs. Penny Stocks/Meme Stocks
• [06:01] – Why Quality Stocks “Look Expensive”
• [07:53] – Case Studies: Apple & Nvidia
• [10:15] – Lightning Round (Diversification, Valuation)
• [14:19] – Macro vs. Micro: Bonds and Executive Resignations
• [22:16] – Embrace Reality: Preparing for Corrections
• [27:25] – Avoid “Hope” in Investing
• [32:29] – Know What You Own, Articulate Your Thesis
• [37:33] – Beware Wall Street Hype & Promotion
• [39:42] – Handling Losers, Takeover Myths
• [44:14] – Mailbag: Profit-Taking, Buying for Kids/Grandkids

Summary in a Sentence:
Jim Cramer delivers a master class on “rules for the road” in investing: buy high-quality stocks, stick to discipline, prepare for inevitable volatility, cut losers, do your homework, and never let emotion or hype dictate your portfolio.