← The Compound and Friends
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- [00:00]
Josh Brown
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- [01:14]
Jim Cramer
Welcome to the compound and friends.
- [01:16]
Josh Brown
All opinions expressed by Josh Brown, Michael.
- [01:19]
Jim Cramer
Batnik and their castmates are solely their.
- [01:21]
Josh Brown
Own opinions and do not reflect the.
- [01:22]
Jim Cramer
Opinion of Ritholtz Wealth Management. This podcast is for informational purposes only.
- [01:26]
Josh Brown
And should not be relied upon for any investment decisions. Clients of Ritholtz Wealth Management may maintain.
- [01:32]
Jim Cramer
Positions in the securities discussed in this podcast. Ladies and gentlemen, please welcome to the stage Josh Brown, Michael Batnik, and your very special guest for the night, Jim Cramer. Put my mic on.
- [01:49]
Josh Brown
All right, so that was the warmup.
- [01:52]
Jim Cramer
Let's go.
- [01:55]
Josh Brown
All right, Michael Bag, ladies and gentlemen. All right, you guys. We are on a Friday night in South Street Seaport. We are here to talk about stocks. Give yourselves a round of applause. Let's hear it.
- [02:13]
Jim Cramer
This a vacation for me. This is what I want to do on my vacation. You want to talk stocks.
- [02:19]
Josh Brown
I have to tell you, this is without a doubt the number one career highlight for me. We're about to spend six and a half hours talking with Jim Cramer. I didn't even write an introduction because I don't think you need it anywhere in the world. In my estimation, you are. When people think of the stock market, if they could think of one person, it might be Warren Buffett, but also it might be you. And that's it. I don't know of a third. I don't know of a third person that the global population associates more. I want them to know you stock.
- [02:50]
Jim Cramer
Market because I have felt from the day I met you that you are the democratizer and you understand how to demystify which I love. I'll tell you a story. A buddy of mine, Semblance, you saw him on this thing.
- [03:01]
Josh Brown
I go, I'm just going to put the mic down.
- [03:03]
Jim Cramer
Yeah. I go fishing with Semblance. He's terrific. Went from Panama, right where they had Survivor one year, they had Survivor there. And when he did this really unbelievable piece and it was just, it was a piece about the, it was about how big AI is going to be, whatever. I said, you know, you gotta come on my show. And he goes, oh, what, what? You're eight minutes. I said, well, I'll try to, I'll give you 10 minutes. He goes, now I go with Josh. I said, well, Josh Brown. Yeah. He said he'll give me as long time as I want and I don't need to be on TV anymore. Oh man, think about that. Number one analyst in the country. He doesn't want to be on TV with the eight minutes. Not really able to get the job done. He wants to come see you. Cause he said I can get my points across in an atmosphere where people care and are fired up and I know his family and everything and it is just great Testament that he said I have to go where people care. And that's what you've done.
- [03:54]
Josh Brown
I really appreciate that, Jim. And to all the fans of the compound, you guys are the reason that we do it. And I just want to express how much it means to me to see you guys here tonight. One more round of applause for yourselves.
- [04:08]
Michael Batnik
And also before I.
- [04:11]
Josh Brown
And furthermore.
- [04:12]
Michael Batnik
Yeah, and that being said before I turn the Nick game on because I'm.
- [04:15]
Josh Brown
Definitely not going to get a word.
- [04:16]
Michael Batnik
In with these two world class maniacs for the rest of the show. I just want to say it is such to echo what Josh said. What an honor. All time highs for the s and P500 and every other index. And if this is the top, there's nobody I'd rather celebrate it with than you.
- [04:35]
Jim Cramer
Thank you.
- [04:35]
Michael Batnik
Yeah, right.
- [04:36]
Jim Cramer
I mean, oh, and we reached 47,000 and close. And the 34th time my producer Heather Gaines is here, I said we gotta work all that stuff in. All the other shows are working that stuff in. Let's work that stuff in.
- [04:47]
Michael Batnik
So Jim, outside of, and maybe even not outside of Jack Bogle, you really have done as much for the individual investor, for the people in the audience, for the 300 million people around this country or the 150 that own stocks, whatever it is. Thank you for everything.
- [05:03]
Jim Cramer
I'm honored that you say that. I mean it's Kind of what I did want to accomplish. It's loftier than I ever that I think I am. And I'm really honored that you say that. If I could get through. I knew Jack and I had this debate about Jack and index fund performance, and I showed him my performance. I said, listen, I've been up 24% after all fees versus 8% for the S and P. And he goes, okay, so let me ask you something. When you have a good year, how much money do you take in? I said, none. He said, well, that's why you beat the market. Everybody who has a good year, they go marketing and, and how many times have you been open? I said, I've been open like three times in the last 10 years. And he said, well, look, you're not a marketer. And I said, I tell you the truth, I hate the marketing. And he said, well, if you marketed, you would have so much money come in at once, you'd be ruined because you had that hot year. And I've always respected that. Jack. Jack was a guy who said, yes, you can beat the market. He never want to say it out loud. You can beat the market, but under circumstances that aren't what, the masters of the universe.
- [06:00]
Josh Brown
Because if you take. If you have the best year in your career, that's also going to be the high point of your money raising.
- [06:06]
Jim Cramer
Yeah.
- [06:06]
Josh Brown
And then you're forced to buy things that you wouldn't otherwise buy, probably toward a top, if not at the top.
- [06:12]
Jim Cramer
He would say, he said to me, how many great ideas do you have a year, real ideas that you want to own, say, 4 or 5% of the company? I said, those probably come three or four times a year. He goes, you'd have to have. You'd have to own 10% of 10 kind of companies like that. And it was. I was really mindful because it means that there are great. Think about how great Will Danoff is at contra, that he's able to handle it, but most of the guys are not able to handle the big rush in the money. And so I knew I had to get out. We can talk a lot about the business, but the business was. Jack was very humbling because he did make it clear that most people should be in an index fund. I believe that you can have both. I think that somehow this only index fund at all time thing is a big mistake because there's a lot of people who have eyes and ears and see things and don't take advantage of their own knowledge because they're told they're too stupid. And then when I say that I mean it. They're told, listen, you don't know. We do. Give it to us. And I think everybody has eyes and ears, they can do things. But they're talked out of believing that they could have owned Facebook. Now Meta, they just got talked out of it.
- [07:18]
Josh Brown
And Most people in 2012, when Meta came public, when Facebook came public, they, they understood this is going to be a big company.
- [07:25]
Jim Cramer
Absolutely.
- [07:26]
Josh Brown
They could have bought it. But they said, ah, it's in the index. I don't need to.
- [07:30]
Jim Cramer
Exactly.
- [07:30]
Josh Brown
And then at 10x revisionist history.
- [07:32]
Michael Batnik
I remember you on TV, both of you, actually.
- [07:34]
Josh Brown
Yeah.
- [07:35]
Michael Batnik
What a shit show.
- [07:36]
Jim Cramer
That IPO was what, 42, 43 happened to be the day I was doing. I had to. I was doing this junior prom after party for my daughter and I had just laid down red carpet and it rained. And she said, dad, it was like the night before. She's, dad, I want a slate patio. I said, well, what do you like? I got guys. I said, well, it had to be at night cause it's against the zoning, but we got it down and just in time. It opened and Melissa Lee asked me, what do you think? I said, 47. Like 40. No, but then it got clobbered, if you remember, because he didn't have the. He didn't have the mobile. Didn't have the mobile. How do they monetize mobile 17, 18? And then bingo. I got, you know, I became friends with him. It's kind of a weird thing with Mark. Yeah. He said, you know, he's a different kind of guy, but he's not a bad guy. He's not a big. No, he's not a bad guy. Hey, he liked my book.
- [08:25]
Josh Brown
I don't think he's a bad guy, but he does live like a super villain. He lives in a volcano in Hawaii and he is surrounded by his own food source.
- [08:34]
Jim Cramer
Sharks with lasers, Chopper to look at his place.
- [08:36]
Josh Brown
Okay? Because my friend, he's living like a super villain.
- [08:40]
Jim Cramer
No, it is Bond villain. And he's like. Someone told my. One of my lawyers was saying, I. I like mma. And I said, my wife, what's mma? She goes, that's that stuff that Zuckerberg does. I said, you like that is stuff, because, yeah, that's MMA is. He's a little crazy. But like, I was seeing him on Rogan and look, I think that he. Look, he's off the reservation right now, but I like the product.
- [09:03]
Josh Brown
So I want to. We're going to get to the modern Market. But in order for this discussion to achieve what I wanted to achieve for all of you and for those listening from home or from their cars, I want to go back, because I think people need to understand if you're a fan of the compound, you're a fan of what Michael and I do, how influential you've been on us, but also on, I think, the American investing public. 25 years ago, literally to the month, I told my wife, Shari, AKA Sprinkles, who's here tonight. I said, I'm going to the YMCA, the 92nd Street Y, and I'm gonna spend the whole day there. I think. I don't know how long this event's gonna be, but that's what I'm doing today. She says, what are you doing? I said, jim Cramer is gonna give a talk at the Y, and I have a copy of Confessions of a Street Addict in my hand, and I'm gonna go. And at this point, I think I'm 22,000, 23 years old. I'm a retail stockbroker. Literally nobody. Still nobody. But stop it with that much more nobody back then. So I go and I sit in the audience, and it's literally six months after the market topped, and we don't know, Right? But so it's tickers, and it's a little mini lightning round. This is five years before you have your own show on cnbc. You're letting, like, random people ask you tickers, and I've never seen anything like it. You did an hour on every stock under the sun, and you actually had things to say about every company. And I sat in the back of the room and I waited for my chance to get you to sign my book. And you did. But I remember saying to myself, oh, my God, this is. This is like, the greatest communicator about stocks I've ever seen in my entire life. It's literally 25 years to the month of where we're sitting right now.
- [10:55]
Jim Cramer
That's funny.
- [10:56]
Josh Brown
Did you have any idea in those days that your career would take you from hedge fund manager to columnistatthestreet.com to where you are now?
- [11:06]
Jim Cramer
No, I mean, like, that.
- [11:08]
Josh Brown
Was this a blueprint or.
- [11:09]
Jim Cramer
It's just very interesting to say. Remember what you said about how. Yeah. Took all that money in at once? Yeah, that would be the top. I mean, I. That was my best book, and it was the only one that's really personal. I sold 2 million copies of it. It was a big book. I mean, that's a huge amount now.
- [11:22]
Josh Brown
Yeah.
- [11:23]
Jim Cramer
And the book was. It was actually very loved by the critics. I couldn't believe. I didn't care about the critics. But my lawyer didn't want me to write it. My then wife didn't want me to write it. My kids didn't want me to write it. Everyone was afraid that I would tell everything. And then I did tell everything, and it was very embarrassing for me. Remember all this horrible stuff I said about myself?
- [11:44]
Josh Brown
Well, there was stuff about the SEC calling you.
- [11:47]
Jim Cramer
Oh, yes.
- [11:47]
Josh Brown
And you're drinking, you're laying on the linoleum floor, sleeping in your car. Sleeping in the car.
- [11:53]
Jim Cramer
Where I was like, on my 40th birthday, SEC called me. I had written an article. We were talking earlier about what did you write an article now? And no one really cares about it, but I moved a bunch of stocks in a piece I wrote for Smart Money, which I had helped start a few years earlier. And it was the day that there was an article about me. It was a big party for all my friends that my wife was throwing nemwife Jesus. And it was a. The SEC was looking into my manipulation of four stocks. And what had happened is that. And this is how life really. Now I can talk about it, because I don't give a damn. But there were four stocks that I wrote about that I said were orphan stocks, and I thought they'd be good stocks. And I said, one of them is probably going to be a bomb. Two are going to be okay, and one's going to be a killer. That's pretty much the ratio line. And what happened is they left the disclosure box off that I owned them. And the SEC went after me with everything they had. And the Journal did not reveal that they dropped the box. So then we had to go and say, listen, we're gonna sue you guys. And there happened to be a memo that said, do you think Cramer would mind if we drop the four stocks? We don't have enough room for the article and the disclosure box. And, you know, so, you know, hundreds of thousands of dollars in legal fees and very embarrassing for me. And at the end, you know, my lawyer was saying, listen, Jim Cramer wants to be the CEO of Dow Jones. He can be it. Because we have the memo. And they apologized and they did investigation about how they could have been so wrong. But all these things happened and I wrote about them, and it's incredibly important. That's crazy.
- [13:29]
Josh Brown
You put that in a book. At that time, people writing investment books were writing them to burnish their careers. They were writing them to say, look how smart I am. And your book, first of all, you call yourself a street addict, Right. Well, that's in the title.
- [13:43]
Jim Cramer
Right? That was supposed to be like, Confessions of. You know, this is the book that Andrew just wrote.
- [13:46]
Josh Brown
Yeah.
- [13:47]
Jim Cramer
You know, about Jesse Lawrence, Jesse Livermore. But, yeah, confession. Because I was a street addict. I was possessed by the ticker, just like.
- [13:54]
Josh Brown
But I think that was, like, paradigm shifting. And I think that the next wave of commentary that came after that, people were much more comfortable being themselves, being authentic. Yes, I'm a market participant. No, I'm not a genius. Yes, I make mistakes. I think that you were the first person to do that in not just book form, but on thestreet.com and eventually on television. And we take it for granted now that people are able to be themselves. Prior to that, everybody was very stage managed.
- [14:23]
Jim Cramer
What did you say? Like, I watch you when you're on with Scott, or do your own stuff and, like, do this. And this is like fantasy land back then. I mean, it'd be like, what, are you kidding me? And yet this is how it really should be. I mean, it was about rich people making money and then poor people not making money, and that's all changed. And I like that. But I knew I had to get out of the hedge fund business. And it's in the book where there was this guy Berkowitz that I had hired. This guy, really good manager by the name of Dan Benton, said, listen, I got this kid. You ought to hire him as your assistant. And I had become progressively really possessed with beating the numbers. But I had to do $430,000 a day by the time I'd done just to be able to maintain my average. And I was becoming meaner and more horrible and wrecking everybody's life. I was trading when our kid was born and bought a lot, about killed it on the South Koa trade. Why wouldn't you? Coming out there, it was like a real accomplishment, but that was the wrong way to look at it. And at the end, right at the end, his daughter was probably nine and she was in a play. And it was the same day that intel reported. And I said to him, when he was leaving, I said, wait a second. Let me tell you something.
- [15:30]
Josh Brown
What play is it?
- [15:30]
Jim Cramer
Let me know. I said. I said, let me tell you something. Your kid's gonna be in a million plays. But intel only reports four times a year. Can you listen to yourself? I said, yeah. Intel imports four time. Go to your. Go to your play. Go see it. Yeah, she'll be terrific. Let me do the damn intel, okay? I'll get it right. And that's. That's not good.
- [15:51]
Josh Brown
There are stories of. You've told these stories of breaking keyboards and throwing.
- [15:57]
Jim Cramer
I had an anger problem, okay?
- [15:59]
Josh Brown
So I don't think it's crazy to say that you made the right decision. I think for most people, they would look at the level of success that you've achieved as market commentator, a teacher, a mentor to investors. You've gone way beyond what you could have accomplished had you continued running a hedge fund.
- [16:17]
Jim Cramer
I think about a lot. I was at this Goldman dinner. I started Goldman sales and trading, then went towards sales toward wealth management, they call it. And I was with a bunch of guys from my class, and they're all doing really well, and their life is based on how well they did on money. And that's okay because that's the thing. And they all liked the fact that I did not. Everybody wants to have money, and there's nothing wrong with being wealthy, but they love the fact that I went for something else because they said that was right for you. We always knew that was right for you, and you knew what was right for us. And it was right, in a sense that I wanted to do something really different. And I started the street because what had happened, I had gone to Dow Jones to say, listen, there's going to be this thing, and we can do. We can do Wall Street Journal, like, all day.
- [17:01]
Josh Brown
You showed them the Internet.
- [17:02]
Jim Cramer
Yeah. And they say, well, no, but then what would happen? People wouldn't want to read it in the morning. I said, well, no, but it's history. That's history. What's going to happen? You're going to read all that? We're updated. Millions of. Well, we can't update. We can't keep throwing the paper on people's lawns and stuff. I said, no, no, we're not going to do that. We're going to update it on our PCs. Well, but no, I mean, who'll read that? Who will pay for that? And I said, well, that's another story. But then they got in this fight that I just mentioned. I said, listen, I'm keeping it myself. They offered me $400,000 for my idea, and I said, shove it. I don't want your 400,000. I wanted to try it.
- [17:32]
Michael Batnik
Jim, when you started your road down the media, which was obviously a complete 180 from running a hedge fund.
- [17:39]
Jim Cramer
Sure.
- [17:39]
Michael Batnik
Did you think that you were going to eventually come back to running money?
- [17:44]
Jim Cramer
No, because I was £225. I had really bad blood pressure. My life was. I just. I was possessed and I didn't. I wanted to live. And that's what I felt. It was about living or dying, because that's, you know, I'm 160 pounds and my blood pressure's okay. There was just no way to make it. I knew that I would not make it.
- [18:06]
Michael Batnik
Where do you think that pressure on a day to day basis came from? Is it just your internal, your media?
- [18:10]
Jim Cramer
You know, it's funny, I know that I love my late dad and he was sensational, but he always thought David was smarter than I am. And Barbara was really smart and we. Laura was so incredible and she's going to here and Shelly's smart. Hey, Shelly. I bet you she was always somebody who was smarter. And it just broke my heart that there was always somebody who was more accomplished and better. And I always. My dad was a salesman. He sold boxes and bags to retailers and he sold doggy bags in Philadelphia at restaurants and later part of his career. But I just never, ever felt secure.
- [18:42]
Josh Brown
You felt that you had to prove. You felt you had to prove yourself to yourself or to him or.
- [18:48]
Jim Cramer
I always wanted his approval. And let me tell you, when I got his approval, I was desperate. My whole life, I've been desperate to try to get Pop's approval. But I had this buddy, Tom McGrath, he's a great friend of mine. He was in my hedge fund. He goes, look, we were. Eagle season tickets are together. He goes, look, the Philadelphia Inquirer. It's going out of business. I got a guy in the courtroom. We can get that box. I said, where's the box? He says, it's on the 50. I said, oh, my God. Oh, my God. The luxury box at the 50 yard line. I said, no. And he says, why? Why do you have to. I said, yeah, you'll see. You'll see. Just be there. Be there on opening day. So we go on first day and my father says, jimmy, I think you've done okay, but I'm on the 47. I said, Pop, move five feet over, you're on the 50. Unbelievable. He said, hey, Jimmy, you're okay. Jimmy's. Jimmy's.
- [19:34]
Josh Brown
So I very much relate to that. And it never goes.
- [19:38]
Jim Cramer
Tell me, tell me.
- [19:40]
Josh Brown
It never goes.
- [19:40]
Jim Cramer
Don't drop it like that. I gotta know, because it's so hard.
- [19:43]
Josh Brown
Okay, so it never goes away would be my comment. Even after you get to a place where obviously you can pay your bills, obviously your family's doing well. Obviously, like, you can drive whatever car you want, you can pick your own hours, you can sign contracts and decide how hard you want to work, who.
- [20:02]
Jim Cramer
You want to work with.
- [20:03]
Josh Brown
Even when you get to that point, that, like, need for other people to see you as somebody who's accomplished something, it. It, like, never goes away.
- [20:12]
Jim Cramer
I know.
- [20:13]
Josh Brown
At least from my perspective.
- [20:14]
Jim Cramer
Well, look, I think that you take a guy like Semblance who was here.
- [20:17]
Josh Brown
Yeah.
- [20:18]
Jim Cramer
Semblance is. I don't know who did. Anyone.
- [20:20]
Josh Brown
Michael Semblis fans in the audience. Yes.
- [20:23]
Michael Batnik
Legend.
- [20:23]
Jim Cramer
Like, you know, like Semblance. Like, I first meet Semblance and I say, damn, this guy's like, the smartest guy ever. And then he turns out to be the smartest guy ever.
- [20:31]
Josh Brown
He might be.
- [20:32]
Jim Cramer
And I'm incredibly intimidated by him, but I realize, wait a second. He likes to fish, I like to fish. We go fishing, and the next thing I know, it's like, you know, he's a regular guy. He's worried that people don't like his stuff. That's what he's worried about.
- [20:45]
Josh Brown
Right.
- [20:45]
Jim Cramer
And do you like that? I said, yeah. He says, no, tell me the research.
- [20:48]
Josh Brown
At JP Morgan is worried. No one's reading what he.
- [20:50]
Jim Cramer
He is. He's like, hey, what do you think? Like, the piece will come out, like, at 7:59 on Monday. And he'll say, what'd you think? And I'm like. I said, I haven't had a chance to read it yet. Are you gonna read it before you go on? Of course I'm gonna read it. Are you gonna mention it? Maybe I'll mention it. I don't know if I like it. If I like it, I'll mention it. If I don't like it. Oh, no. Even I. If. If you don't like it, I think. Can you mention it? I said, michael. What?
- [21:10]
Josh Brown
Relax.
- [21:11]
Jim Cramer
You're like a brilliant guy. No, he's worried that.
- [21:14]
Josh Brown
I think so. I think that's universal. I want to go to the dot com era because of all the comparisons that are being made from then to today.
- [21:22]
Jim Cramer
Sure.
- [21:24]
Josh Brown
I started reading you. This is a true story. I started reading you in 1997.
- [21:29]
Jim Cramer
Jesus. That would have been my.
- [21:31]
Josh Brown
So you're the six months in, you're doing thestreet.com. you're also doing a column for New York magazine and my first job at a brokerage firm in Garden City, Long island. Firm called Lou Liberbaum. It's a true story. Before I have my series 7, I can't talk on the phone to clients I can cold call. That's it. But my other job is take this one computer in the office. It's in the computer room. This is true. Print out Jim Cramer's column in the morning. It was you, maybe Herb Greenberg.
- [21:59]
Jim Cramer
Yeah, sure.
- [22:00]
Josh Brown
I forget who. There was a third guy, Dan, we had. Okay, okay, so print, print these columns out and make sure all the brokers get a copy on their desk. And I did that for six months, every single day. And they ate it up. They would grab it out of my hand as I'm walking through the aisle.
- [22:18]
Jim Cramer
Yes, dynamite.
- [22:19]
Josh Brown
100%. And, and so I remember that era is the first time I started reading your stuff. I think it's the first time you're writing and I was curious if you think the comparisons between that era and now are apropos or if they're different, if these periods are different. How are they different?
- [22:39]
Jim Cramer
Well, I think that they're very different. And one of the reasons I think they're very different until OpenAI, which is something we can talk about, is that these companies are remarkable. They're like nation state companies. They're tremendous balance sheets led by really great people. Whereas like when you were back in those days, you'll see a guy from Infospace and, and he'll come in to see and I'll say, hey listen, street.com kind of struggling. I'm kind of struggling, but I've said that I'm going to be the first trillion dollar company. So what I could do is here's $10 million and he writes as a check and I'll give it to you. And then what you do is you buy $10 million for the ads in mind. It's called a lazy Susan deal and we all work out. I said that sounds illegal. And he goes, well no, you understand, no one's in the room. And I said, well that doesn't make it less so.
- [23:27]
Josh Brown
That's doubleclick and like all those early Internet advertising business models.
- [23:32]
Jim Cramer
And that's the way it was back then. It was not Wild west so much as like the authorities are stupid. We can do what we want. There's Jack Grubman. I met Jack Grubman through my ex wife when he was just beginning at Paine Webber and he was doing stuff I couldn't believe to build up his name. That was all insider trading stuff, but it was not illegal. It's hard to describe what illegal and illegal meant, but put it this way, the companies are so well capitalized, they're involved now again with the exception of OpenAI. I want to talk about that. But the businesses are real. And by that point, almost all those businesses were about lighting, fiber and having product to be sold over the fiber. And what we didn't realize is kind of like Walmart. Walmart destroyed all retail. Amazon destroyed all of online retail. And you just didn't think that either could happen. Look, if you're Target right now, the new guy comes in, believe me, he's thinking about whether his company can make it. Kohl's. Can they make it? They probably can't make it because Walmart's going to wipe everybody out except for Costco. What it was like then was we had all these different retailers, different companies, and we somehow thought they were all going to work. And we had all these companies that were light and fiber, and we somehow thought that they were going to work. And I mentioned Jack Rubman because Jack Grubman was WorldCom. He was the banker behind World. He was the banker behind all these. And you always had this next deal, next deal, next deal. And it was always the same, which is that you could jam. You could get the E Trade guys, the retail people to pay up. You could then offer them stock. You go short and then you hold it till it goes to two. It was all crooked.
- [25:02]
Josh Brown
You had a crooked. You had a series of columns back then, probably 98 or 99. You had these two fictional characters who you pretended Buzz and Batch. So Buzz and Batch were two guys who were, I guess, institutional sales traders. And they would call you up and you would write these dialogues that never took place, but probably took place. Right. An amalgamation of all the people calling you a stock idea.
- [25:28]
Jim Cramer
I'm surprised. That's a long time ago.
- [25:30]
Josh Brown
I go, I got. I go. I go deep. So that's so what Buzz and Badge today would be trading oklo. And, oh, my gosh, they would be involved in all these stuff.
- [25:39]
Jim Cramer
Yeah. So this is the problem. I mean, look, and I know yesterday I get up and I get up real early and I'd say, son of a bitch. Or someone from the administration has told someone that you got that they're gonna put $10 million in each of the big four quads of companies. 10 million. That ought to make a difference, right? These are all like $10 billion companies and 20 billion dollar companies. And I've been trying to tell people, listen, trim, trim, trim. I don't want you to blow it out. I just don't want you to lose it all. Trim. I never say get out. Now, I did that once, October 8th and that's in 1998 in the book 1206. And what happened, it's really interesting, was that I said, oh, shit, everyone's gonna hate me. Cause I said, be trimming the quantums and. And suddenly could take the quantums up again. Now I've met with two of the four quantums. The other two don't want to come on the show. And not. It doesn't mean anything.
- [26:27]
Josh Brown
D Wave. Yeah, let's tell the people what stocks you're talking about.
- [26:30]
Jim Cramer
I1Q.
- [26:31]
Josh Brown
What's a rigatoni? We like that one.
- [26:34]
Jim Cramer
Yeah. Never. Like, someone sold $2.5 million worth of rigatoni last week. And I'm like, look at it. And like, you know, the stock was like a penny stock a year ago.
- [26:42]
Josh Brown
Michael said, it's ZD now. He's down, downgraded.
- [26:45]
Jim Cramer
Carbone. They work for Carbone. But, you know, you look at this stuff and you just say, okay, I'm not going to get people out, but I got to get people to take some off. So you look at oklo, and that's good. Oklahoma. Did you see the guy who said. He said, okay, the analysis, is it Oklahoma or Oklahoma? The analyst and the analyst said, doesn't matter. That's very 98.
- [27:06]
Josh Brown
It goes up. It doesn't matter what it's called. So Buzz and Batch would be in the quantum stocks, right?
- [27:12]
Jim Cramer
They would be doing the oclo and they'd be doing. Doing the ionqs, and they would be doing the Bloom Energy, which has never made any money, but suddenly does have a real product. And you go to like a Michael Entrader Coreweave, who's actually a Jersey guy, and he's really easy to talk to. And you say, how about the Bloom? And he goes, I don't know. I mean, it doesn't scale, but that doesn't matter. It doesn't scale. It's got a couple of things that are making. So a couple of data centers have backup power. But then what happens is then you have Tesla. And Tesla makes you look like an idiot. Because Tesla is like, you know, guy will say, anyone, you can say, hey, Jim, you know, you knocked that Oklahoma. That's the next Tesla. Really hard to defute to refute the next Tesla.
- [27:51]
Josh Brown
Tesla crushed some of the smartest people I've ever met in this business. It steamrolled. It steamrolled people that I would say are probably geniuses.
- [28:00]
Jim Cramer
Yeah.
- [28:00]
Michael Batnik
But there's one Elon. It was Elon. It wasn't. It was. That's it.
- [28:03]
Jim Cramer
It's elon but you know, take look the other day I had Scotty was my co host and Tesla was down 30 and I said look, he was talking about car sales. Now if you read the conference call, he has pretty good conference call. There wasn't anything about cars. It was all about robots, it was all about self drive, it was all about battery storage to be able to make it so that the terawatt that's produced in the country goes and you don't need to build any new places, new power plants. And it was really fabulous. So I said to Scott think the other side of the trade. And he goes why? I said because he's changed the narrative. The narrative's not about cars anymore. Cars are passe with him. He said yeah, but this car, he's.
- [28:44]
Josh Brown
Talking about robot surgery. On the conference call this week, I don't think anybody even asked a question about cars.
- [28:49]
Jim Cramer
No, there wasn't any. And I heard this Rick Smith, who's the son of the late Fred Smith, who was the greatest guy started FedEx, he was saying look, the big problem this was when I was at Dreamforce last week. He said the big problem with the robots is the hand because it can only handle. It only knows a certain size box and then it goes around, it hits the box, it doesn't know what it's doing. And there it is a week later. Elon Musk, you know what I'm developing the hand. The hand is the hardest thing but we're going to work out the hand. And you realize he's solving the real world question of AI and robots and we're all sitting here thinking about how are the sales in Germany? Give me a break.
- [29:28]
Josh Brown
Right? How many cars did you sell?
- [29:29]
Jim Cramer
How many cars are sold in Germany?
- [29:31]
Michael Batnik
One of the. So I think we all understand the big differences between those companies in the late 90s and these companies. The amount of money these companies are able to produce the moats. Our friend Kai Wo wrote a paper about the capex spending and the hyperscalers. These companies are doing the max 7, 22% return on invested capital versus 6% for the S&P493. So we all, we all understand that these are not fly by. They're not going anywhere. The difference is the size of these companies. Nvidia and Apple are both $4 trillion. Maybe Nvidia is on its way to 10, who knows?
- [30:13]
Josh Brown
The size is a huge Microsoft right behind.
- [30:16]
Jim Cramer
Okay, but Jensen would tell you is so what? Maybe my company should be worth. He said you can't. He Urged me not to look at that and he urged me not to look at it when it crossed a trillion.
- [30:29]
Josh Brown
Don't look at the market cap.
- [30:30]
Jim Cramer
Yeah, he said you can't. It just doesn't help.
- [30:32]
Michael Batnik
Well, how could you not look? Okay, so, I mean, I agree with you.
- [30:35]
Jim Cramer
It's absolutely right. I mean, but this is, what he's trying to say is don't limit. What he's been saying is if you take a 20 year view, which is what he does, and you work backwards, it's entirely possible that he will develop things that no one's ever thought about and it might be worth far more than you. They better. Elon uses 50 trillion, but they better.
- [30:56]
Michael Batnik
Because, well, they better.
- [30:57]
Jim Cramer
Absolutely. He'll tell you they better or else he runs scared because you runs very scared.
- [31:02]
Michael Batnik
What happened to Cisco and all of the other companies? They did it. All of those companies, they did 10x their sales from 1999 to 2010, but the stocks fell 85% because investors were way ahead of expectations. So whatever Jensen is saying to you, they better do all of that to justify these valuations.
- [31:21]
Jim Cramer
Okay, so here's what Jensen would say if we were here. He'd say, you know what, we better do all of that or we're dead. See, he'd say just what you said and that's why you'd like him. He's not gonna come up with the. No, let me tell you this, that he goes, no, you're dead right? I mean, if we don't beat Lisa Su and AMD and we don't stay one ahead, we're dead. Because he runs more scared than anybody I've seen. And it's really impressive that he runs scared because I think we'd all like that. Look, are these companies. Here's the way that Sarah Fryer, the CFO of OpenAI, and I really like her because she helped me when I thought that square was going to go bust. She didn't do so well at the local thing, the newspaper stuff, but she was a good partner at Goldman. She's saying, look, if we can take over every vertical, if we can take over the Facebook vertical, the Meta vertical, and if we can take over the Microsoft vertical and we can take over what they're doing at Nvidia, whatever, then we win. But we have to take, we have to win in every vertical. So you listen to that in your Zuckerberg and you say, listen, I gotta, I gotta spend like hell. I cannot have OpenAI come in. I have to own my vertical. And that's the fight out there. That's what people are saying is like, open AI is gonna destroy us unless we up our game.
- [32:34]
Josh Brown
It's an existential spend 100%.
- [32:36]
Michael Batnik
They're all saying that same thing.
- [32:38]
Jim Cramer
But the verticals are really great. Look at Zuckerberg. He's. He's really good.
- [32:42]
Josh Brown
So let's, let's do OpenAI while we're on the topic. This is the strangest thing about the modern market. OpenAI is like this character that exists off screen. It's not public. It's the most important character in the. In the movie. So we're all watching a movie and the main character is Kaiser.
- [33:00]
Jim Cramer
So say, yes, it is.
- [33:01]
Josh Brown
Okay. Everything Kaiser sosey does behind the scenes, that then becomes news. We don't see the revolt, the resulting share price move because OpenAI doesn't trade. We can only see that interpreted through the share prices of all of the other characters in the movie. It's a phenomenally fascinating thing. And the main character has not yet appeared. Is this the first trillion dollar market cap ipo?
- [33:30]
Jim Cramer
She told me, don't. Sarah said, please don't use the trill. He said, don't go. He said, we don't think it's going to be north of 70.
- [33:36]
Josh Brown
I feel like this show is not in Sarah's heavy rotation. So you can.
- [33:40]
Jim Cramer
But that's. I'm just saying that I wanted to use trill. Okay, I'll tell you. Let me tell you why it's 500 billion.
- [33:46]
Josh Brown
I'm not saying anything.
- [33:47]
Jim Cramer
Let me tell you why it's so hard. So I got Mark Casper on. He's a real smart guy. He runs Thermo Fisher. And I've had Mark for many, many years. I've known him for a long time. And I say to him, why aren't companies trying to really solve cancer with AI? And he goes, okay. The drug companies, they don't believe us. They don't think that we're important. There's only one guy who took our call, Sam. I said, sam, because Sam's the only guy who's interested. He knows that we working together can be able to figure out gene sequencing that's going to be able to take on als, going to take on Parkinson's, going to take on all the diseases that, that these drug companies are afraid they're gonna lose billions. They're gonna lose billions. And he is a great guy. And I said, well, I don't know. I don't know enough about him other than the fact he's really good at Taking down money. He goes, no, Sam takes your call and he goes, what are the hardest diseases to cure? I wanna go after those. And he said, you should respect Sam for that because the drug companies only want to go after the easy ones because these other ones, ALS cost too much money. And so there you got again, you have Kaiser. He's off on the sidelines, but. But he wants to solve that disease. And when you go and you talk to someone in cars, he's trying to figure out, is there a car that could develop. One of the things that Jobs wanted to do before he died. Car that can run on water. Cause that would solve the internal combustion problem. That would be something that Sam wants to go after. So I don't know him personally. I met him when I shook his hand. His partner Greg, who's been on my show a couple times. But he's trying to do big things.
- [35:18]
Josh Brown
Yeah, well, clearly you gotta hand him.
- [35:20]
Jim Cramer
Gotta hand it to him. He's trying to be. But do I like the fact that they're borrowing money? Look, Safra Katz is a really good business person. And when she told me she was.
- [35:29]
Josh Brown
CEO of Oracle, when she told me.
- [35:31]
Jim Cramer
She was going to do this, I said, why are you getting. You can't do that, Safra. You can't borrow that kind of money to be able to build what you're saying. She goes, we have no choice. We have to. Our business is growing 2, 3%. This could be the greatest business ever. Larry loves it. Larry's the richest man in the world. Larry Ellison's son's got the parents amount thing. And what's interesting is that she's serious. She's a serious person. I have Hawk Tan on last week. Now Hawk Tan is at Broadcom, which is by a trillion dollar company. He's one of the, he's ruthless, Hawk. I happen to love Hawk. He's ruthless and everyone knows. And I said, hawk, are you sure that this thing's going to work? And he goes, jim, it is going to work.
- [36:06]
Josh Brown
What thing?
- [36:07]
Jim Cramer
The data Centers.
- [36:09]
Josh Brown
The Open AI. Okay.
- [36:10]
Jim Cramer
Because OpenAI is borrowing far more money than, than it should. And I don't know, they have to win something. And every, you know, Google's Deathly afraid of OpenAI.
- [36:20]
Michael Batnik
Jim, are you worried about the credit part of this? Because obviously debt is the biggest part.
- [36:24]
Jim Cramer
Until OpenAI came along, I was thinking this is a really responsible group of people who are figuring out how to keep their turf and continuing to reinvent. Then OpenAI comes along and they have a dream and they're Back with the Microsoft, and they get Oracle to do the data centers. And next thing you know, it's gospel. And remember, the dream starts and I talk about Jensen, like, Jensen, Remember, Jensen brought them the first platform. And that's what ChatGPT was based on, was what. Jensen brought it over. And so he. I fucking know Sam. He's. He's everybody on everybody's lips, and yet he is not there.
- [37:09]
Josh Brown
He's not there.
- [37:10]
Jim Cramer
Yeah, he's not.
- [37:10]
Josh Brown
He's not doing quarterly conference calls. No, he doesn't have to.
- [37:14]
Michael Batnik
You know what? If you're over a certain market cap, I feel like you need to do public market earnings calls.
- [37:19]
Jim Cramer
Well, I guess, you know, look, they do it. It's a tough question because there are people who actually trade the stock all the time. The government doesn't seem to care. Like there's people who buy it and sell it. The government is going toward having two conference calls a year instead of how that helps people. I don't know. As a regular investor, you want as much information as possible. But that's what this New justice puts.
- [37:42]
Josh Brown
What we've heard from people on that topic is that it'll actually increase transparency. Because a lot of times companies don't talk as a result of a quiet period surrounding earnings. If earnings are only twice a year, then theoretically they might be able to speak more frequently, not less.
- [37:59]
Jim Cramer
Okay, here's what I hear about it, which is that when they have news, they should say it. That should be the rule. News, they should say it. And I would like that, because I think a lot of them feel like I can't give the news until the quarter.
- [38:11]
Josh Brown
So this opens that up, theoretically, right?
- [38:13]
Jim Cramer
And then some people get it and others don't. We just want it so that everybody gets it, Jim.
- [38:17]
Michael Batnik
So the companies are huge. We've never seen this before. The valuations are not stupid. They're just not these companies.
- [38:24]
Jim Cramer
That's why I up on the Alphabet, okay? Cause a goddamn Justice Department guy's in my face telling me. I put away some of My lawyer, he said, listen, we're going to destroy Google, okay? We're going to. You think Google's so powerful? Let me tell you something. We're going to split it up and we're not going to let them have any money. You think it's going to be like Exxon when they had Standard Oil and they came, everybody did. Well, we're going to wipe it out. So I went and sold it for the club, okay? And I listened to the guy and they got this Judge called a monopolist. Then the judge just immediately goes back on everything. And I looked at it and I said, I sold Google at 16 times earnings. What about the idiot? I mean, I'm an idiot. 16 times earnings. I sold it through American Electric Powers. Multiple idiot.
- [39:01]
Michael Batnik
So you are the face of the American investor. Is there. Would there be a point in time.
- [39:07]
Jim Cramer
At which.
- [39:10]
Josh Brown
I think you look fabulous? I think you look fantastic? What do you, what do you guys think?
- [39:13]
Michael Batnik
Let's go. Let's hear for Jimmy. Jim. Is there, is there, is there a point out there on Horizon to which you would say, timeout? This is silly season. Forget about Oklahoma and the Iran that gets a distraction. But where the integrity of the capital market system is under. Not a so under, it's where. All right, time out, everybody. No more new money. What would have to happen for you to get there?
- [39:41]
Jim Cramer
Okay, well, look, in March, in the third week of March of 2000, I very publicly wrote a piece in Real Money and in the street which says, I'm getting out. It's too silly. It's too stupid. I'm going to go into bonds. I've never bought bonds other than for trade for Treasuries. And I'm going to go short most of the nasdaq. And I did it. And everyone just thought it was a stunt, but I did. I just, you know, when I had a good year, I sold everything and I wrote from the short side, mostly for the rest of the year because it was phony. And I had seen it be too.
- [40:14]
Michael Batnik
Phony, but it had been phony for years.
- [40:17]
Jim Cramer
So. Okay, that's a really good point. I waited until it was. It is. It was phony. But I wanted to make money. And someone, a very nice woman.
- [40:30]
Josh Brown
Now, I remember very distinctly when MicroStrategy blew up the first time and it was an accounting fraud. And you said, this is now going to be open season on every stock trading at 500 times. Eyeballs. No one's going to believe any of these guys again. I read the. I read what you wrote, and it ended up being that way.
- [40:49]
Jim Cramer
But I got lucky because I had the streets, so I knew how phony it was. And I saw the streets numbers go down really big. And I was very public about it. I said, listen, the numbers are bad. All the IPOs are phony. Everyone's trying to do a secondary. Everyone's trying to get out. Count me out. There isn't a soul I know that doesn't want to sell. They're begging Morgan Stanley to put together a project so they could get get out of their stock in a synthetic way. Now, if I felt that all these companies, let's say I felt that there were five open AIs, there were five different companies that could pull this off, that would be hard for me because I struggle with open. I mean, literally, I pull up with these people when I was at this. And it's one of the reasons why I was so glad to go to Dreamforce. All I asked everybody the same thing was, am I nuts? A OpenAI seems crazy. Am I nuts? And I didn't meet anyone who felt that OpenAI was a joke. I just met people who said it can work because Larry Ellison's serious and Sam's serious. And I said, but what happens if they come up with a source of power that makes it so all this spend on power is not needed? What happens if it turns out that D wave Quantum is faster? And everything they're doing, there's all the fast compute at Nvidia is not fast enough. And remember when Jensen said, look, I didn't believe in Quantum, then he came back, he said, well, look, Quantum is very close and these guys all say the same thing. Well, look, we'll be ready when that happens and they won't be when it happens. So I think you have to look, I hope live long enough to see that it makes it. But I know that I've got to tell you that if I told you that I'm not worried about it after my wife, I come back, I tell my wife, I said, look, I gotta tell you something. I'm afraid of screwing up here on this OpenAI. And I describe it and she says, what does Mark say? Benioff. She's Mark's. Mark's okay with it. She says, well, what does Jansen say? Jansen's okay. Well, everybody's okay with it. So maybe you have to make your peace with it until you can figure out something.
- [42:47]
Michael Batnik
But there are a bunch. I mean, there's, there's, there's what Elon's doing. There's anthropic, like it's not, it's not just them.
- [42:53]
Josh Brown
Well, I want to, I actually want to ask you about that.
- [42:55]
Jim Cramer
So I, I believe in Elonbo. I mean I really do. I think he's very serious.
- [43:00]
Josh Brown
So you and I invested through the first.com wave were left with zero of those companies with the exception of Amazon, but none of the search players the search. So to me, the LLMs remind me of search and there aren't, there are none Left Google came public in 04 after there were 10 of them at one point.
- [43:18]
Jim Cramer
Right.
- [43:19]
Josh Brown
That's the LLM thing. It doesn't feel like there are going to be 10, it feels like there are going to be two. I don't know for sure. It's chatgpt probably, and perplexity or Chachi and Claude.
- [43:32]
Jim Cramer
Well, you got to look at this lawsuit between the New York Times and OpenAI. Because New York Times is, you know, OpenAI is constantly cribbing the Times, but they have 2 million instances of plagiarism. 2 million is in the lawsuit.
- [43:46]
Josh Brown
2 million.
- [43:46]
Jim Cramer
So I met with the lawyers in this thing and I said, wait a second, are you telling me that they won't pay you because you're going to win this lawsuit and then everybody who runs these sites is going to have to pay every single site?
- [43:59]
Josh Brown
Like that might cost more than energy.
- [44:01]
Jim Cramer
Well, the fact is, is that they get a free ride and they're not going to get a free ride. And a lot of these sites won't be able to afford it. And that lawsuit, which I think the Times wins, is going to make it. So all these companies have to start, they have to train.
- [44:13]
Josh Brown
Well, Reddit sued Perplexity on the same ground. They said, you are training your LLM on our proprietary data and you owe us money. And Perplexity said, hey, you're fighting against the open Internet. And Reddit's probably like, yeah, go yourself. Yeah, that's our data. Pay us. It's not our data.
- [44:32]
Jim Cramer
And they use Cloudflare, Matthew Prince, that Stock went from 70 to 200 because they, perplexity used them. And now everyone's gonna have to fall in line.
- [44:40]
Josh Brown
Everyone's got to all can't survive.
- [44:42]
Jim Cramer
Absolutely.
- [44:43]
Josh Brown
Right. A scenario where they have to actually pay all the data they're being trained.
- [44:47]
Jim Cramer
On and that's what's like 2000.
- [44:49]
Josh Brown
So that's what makes me nervous.
- [44:50]
Jim Cramer
That's what's like 2000.
- [44:51]
Josh Brown
All right, the second part you wrote, I've stolen this idea from you, I've given you credit, but you wrote in a moment, in a moment like this, you wrote about being at the diner by the Holland Tunnel where the guy drops the eggs on the griddle and it's just too hot. If you're not ready with the spatula the minute you drop it, why are.
- [45:13]
Jim Cramer
Your eggs so perfect? He goes, Nine seconds.
- [45:16]
Josh Brown
Nine seconds.
- [45:16]
Jim Cramer
I leave them on for 10 seconds to burn till crisp.
- [45:18]
Josh Brown
Is this market, is this market not a hot grill?
- [45:21]
Jim Cramer
Twiddle.
- [45:22]
Josh Brown
Holland Tunnel diner, market environment I don't think so.
- [45:25]
Jim Cramer
I think there's sections that are okay at that point. Everything was. I think there's lots of stuff okay. I mean, okay. Now I know Procter and Gamble's not what this room might be about. Or maybe, I don't know. But Proctor opens up for today and it's John Moeller. He's like the most boring man on earth, but he's a nice guy. He's a cfo.
- [45:41]
Josh Brown
He comes.
- [45:42]
Jim Cramer
Toilet paper. Excuse me?
- [45:43]
Michael Batnik
He sells toilet paper.
- [45:44]
Jim Cramer
Well, he does that. He got that wavy toilet paper. First innovation in 40 years. But they told a good story in. The stock's up 5. And I'm like thinking, shit, that doesn't work. That doesn't work for me. It's not going to fit my thesis. My thesis is that that group is safety last. That's my big rap. And then by the time the market opens, the stock's only up a buck. And so that's working for me because every day you seek validation of your thesis. So, I mean, it's not like I am saying to him, you. Now, let me tell you, it's fine. Every minute you're seeking if you're any good. If you're any good at this business and everybody wants to be good at picking stocks, you have to constantly validate your thesis. And if you see something that says that your thesis is wrong and you ignore it, you're a jackass. So, I mean, Proctor been up big to that. I mean, and literally I'm thinking this. I'm watching the guy at 704 and they're talking, of course, about the Reds, the Cincinnati Reds and the Bangladesh thing. And I'm. Listen, I'm saying, shit, this stock's going up too much. This is wrong. This is not my thesis. This is not my thesis. What am I going to say when Carl talks to me? What are we going to say? I like the Proctor. It's got to come down. It's got to come down. It doesn't work. And it goes down. I go on, 8, 59. I'm like, hey, Proctor, that was a little bit. That's nothing. You don't want to be a nice. So, I mean, you can never make it seem like you're. If you are secure in this business, you're just such a joker. I mean, you have got to be like, I watch you on TV and it's such a look. And I'm friends with everybody and Stephanie worked with me for years. But, you know, Josh will come out and he'll Say, look, toast was toast. I didn't know, you know, And I'm like thinking, oh, there's another guy that's made a mistake in this business besides me. I know two people, him and me. And the ones who don't say it, they're like, are you kidding?
- [47:25]
Josh Brown
There was a guy, part of the original cast of Fast Money. We won't say his name, but if the stocks he picked on Monday didn't do well on Tuesday, he would call in sick to the show. I can't be on.
- [47:35]
Michael Batnik
Say his name. Say it.
- [47:37]
Josh Brown
I won't do it.
- [47:38]
Jim Cramer
See that shit? And it bothers me.
- [47:39]
Michael Batnik
So Jim, do you think the audience, I mean, I'm curious to hear your take on stocks. Do you think that the software stocks are a value or a trap?
- [47:49]
Josh Brown
Let's talk about people too worried about AI disintermediating Adobe Salesforce.
- [47:57]
Jim Cramer
I got to give this micro answer to make macro answer. The macro is the ServiceNow report this week and I think it'll be a really good quarter. And people say, ah, shit, I should have done that when that's got AI. But there's a company called ncno. Not the town, but ncino. Nci. It's a spin off of a bank called Live Oak. And Live Oak is an actual non deposit bank. It's more of a. It's an Internet bank but it's based in Wilmington, North Carolina. So you know, we like oh, what do they know down there? But hey, this guy is a real smart guy who runs it. And what he did was develop software that made it so that you could do software as a service for a bank. And he did it in conjunction with Salesforce and that company's now worth 3.2 billion and his bank is worth 1.5 billion. He just ripped out the Encino Salesforce product. And I said, how did you. This is from the Federal Reserve. It was a panel I ran. He said, I had some kid write the stuff that was better than what.
- [48:54]
Josh Brown
Salesforce has got using AI.
- [48:56]
Jim Cramer
Using AI. So I think that it is going to be existential.
- [48:59]
Josh Brown
Adobe, similar story. Adobe's really what if anybody can make any graphic they want just by speaking it into existence.
- [49:06]
Jim Cramer
Well, my daughter went to Parsons and she was in Adobe that they train on Adobe. And she said, dad, there's this. I bought her this for her for present, for graduation. I bought her the $600 suite for Adobe and she stopped it. I said, why? She goes, I got this canva for free.
- [49:23]
Josh Brown
Yeah.
- [49:24]
Jim Cramer
I said, are you telling me the free products better than Adobe. She goes, I'm telling you, they're equal.
- [49:28]
Josh Brown
Yeah.
- [49:28]
Jim Cramer
And that's. His stock peaked when Canva came out with free. So these guys are all going to be really challenged. And now Marcus guy, I've worked with Mark Benioff's new product in Salesforce, and I see what it's doing.
- [49:40]
Josh Brown
Agent Force.
- [49:41]
Jim Cramer
Yeah, Agent Force.
- [49:42]
Josh Brown
Okay.
- [49:42]
Jim Cramer
But the problem with Agent Force is, one, it can be impersonated, so you have to do a lot of cybersecurity. But two, I mean, do you really want to give. Like, when you call Walgreens. Well, I guess they're almost. Call them when you call CVS and you have, like, dial one for this, dial two for that. You don't want. If they're able to get your information. Like, UnitedHealth was a real bad hack, and I got hit by the hack because I had back surgery five years ago. And, like, every five days, someone calls me, says, yo, this is, you know, how's your back surgery? I understand, because I'm from the national back guys, and we are checking up on your medical. And I said, oh, my God, it's United Health. It never stops. They got my. They know everything about me. And it was a Chinese hack. And I don't want my. I hope Agent Force is never hacked because they know too much. Right.
- [50:29]
Josh Brown
If you set something loose inside of your email, for example, then all of a sudden, it's got every detail it needs for somebody to steal and impersonate.
- [50:38]
Jim Cramer
And that's why I like CrowdStrike and Nick Cash Palo Alto so much, because they're the two that are most soup to nuts.
- [50:46]
Josh Brown
You and I are both CrowdStrike bulls. Yeah, George was on yesterday with. With Wapner in the morning.
- [50:53]
Jim Cramer
Yeah, he came on my show the day before. I said, george, you're overexposed, man.
- [50:58]
Josh Brown
Is cybersecurity the most obvious secular bull market between now and the end of the decade, other than AI and robotics?
- [51:06]
Jim Cramer
That's why I own two of them for the trust I would never do.
- [51:09]
Josh Brown
Which you own. Crowd.
- [51:10]
Jim Cramer
Crowd Cyber and Palo Alto. I'll tell you why. Why Scott had him on. Kind of interesting when. When he was getting up and we had him on pretty early on in the hour because it was me and Scott, because David was off in Carl's off. And I said to Scott, Scott's a good sports fan, like I am. I said, you know, Georgia won Le Mans. And he goes, yeah. I said, no, he won Lamont's, and.
- [51:31]
Josh Brown
Not as a sponsor. He drives the F1 car.
- [51:34]
Jim Cramer
And he finished second in Sebring last year. And, you know, Scott was like, give me a break. I said, george, tell him. Tell him. He goes, yeah, I won. Lamont. George has a sleeping problem. Now, you can only go eight hours. You're not allowed to go all 24. One guy, but he can't sleep. So he's, like, watching all 24 hours, and he's great. And Scott was like, you gotta be kidding me.
- [51:55]
Josh Brown
Yeah.
- [51:55]
Michael Batnik
Yeah.
- [51:55]
Jim Cramer
But George is. Yeah, he is. He's the sponsor, but he's also the chief driver. I love him.
- [52:01]
Josh Brown
Who's your favorite CEO? Not because of what the stock performance was, but you've interviewed every important CEO probably over the last 20 years that's ever been. Who's your favorite?
- [52:12]
Michael Batnik
Was it Jack Welch?
- [52:13]
Josh Brown
I have a very oddball pick that I. That I. That I. A very odd guess that I want to make. I think you genuinely liked Aubrey McClendon from Chesapeake. Okay.
- [52:24]
Jim Cramer
I mentioned Aubrey last week.
- [52:26]
Josh Brown
Oh, you did someone. Because I think you like the guy. No, I loved Aubrey, and it was a really. It was a tragic end. But, yeah.
- [52:33]
Jim Cramer
And, you know, Aubrey violated this Sherman Act. Now, if you take a look, there's. When you look at the Article 2 of the Sherman Act.
- [52:41]
Josh Brown
Wait, he burned down Atlanta? How do you violate the Sherman Act?
- [52:46]
Jim Cramer
He rigged. He bid. Rigged. There was a nice piece of land that he knew had a lot of nat Gas on it, and he wanted to be sure he got it. So he went to everybody who was bidding and said, listen, this is mine. I'll give you some. I wanted it. And it was all recorded. Someone recorded it. And he was this Chauncey Billups. No, no.
- [53:09]
Josh Brown
Chesapeake Energy was the end media of the 2000.
- [53:14]
Jim Cramer
Yes, it was Aubrey. Aubrey was larger than life, and he owned the Thunder. And he was a big giver to Duke. He was actually more. More of a finance guy than he was an oil guy. But he explained a lot in life to me, and I went to a bunch of schools with him, and I really just enjoyed it. Just really enjoyed him. And he. When I went to my. He said, listen, Jimmy, I'm in trouble. And I say, let me check on this. Let me check on this. So I called my guy, Paul Weiss, who does the antitrust, and my friend said, he's done. He's done his 10 years. It's done. And I said, well, I gotta call him back. And he said. He said, what do I tell him? Why do I tell him? He goes, It's 10 years. And I left a message and was. And He. That's when he killed him. He killed himself about. About an hour after. And he didn't get my message, but he. He was a tragic figure whom I loved.
- [54:11]
Josh Brown
He got a message, I'll tell you.
- [54:12]
Jim Cramer
We went to Ohio together.
- [54:13]
Michael Batnik
I wasn't gonna say that.
- [54:14]
Jim Cramer
We went to Ohio together.
- [54:15]
Michael Batnik
Jim, I think you did it. It was your fault.
- [54:17]
Jim Cramer
What? Yeah, my fault. I did it. We went to Ohio together. Was Heather in the Ohio trip? Exactly. My producer. Yeah, well, so he goes. He goes, jimmy, listen to me. We got. And then, you know, it was the day I. Look, my mom and dad called me Jimmy, so I like it. He goes, jimmy, we're going to go to Utica because there's the largest oil patch in the world, bigger than the Permian. And what we're going to do.
- [54:42]
Josh Brown
Utica, New York.
- [54:43]
Jim Cramer
Yeah. We're going to do Utica. How? Utica.
- [54:45]
Josh Brown
Utica. How?
- [54:45]
Jim Cramer
Utica. And you're gonna be there the moment it. We're gonna spud. We're gonna spud. And it's gonna be amazing. So he said, but you gotta put all the stuff on. You gotta be ready, you know. And he goes, all right, hit it. And nothing comes up. And he goes, no, hit it. It's not that. And the guy comes over to me. He goes, I'm with him. He goes, hey, boss, listen, it's natural gas. No, no, it's oil. No, it's natural gas. He goes, no, there's oil in there. And I'm thinking, oh, my God, there will be blood. I mean, could the guy. But, you know, he lost everything on the utic.
- [55:24]
Josh Brown
Yeah, that was a. That was a. That was a true gambler for sure.
- [55:29]
Jim Cramer
Oh, is he every gambler?
- [55:32]
Michael Batnik
This is your eighth book. Why are you doing this to yourself? What are we trying to do here? Who is this?
- [55:37]
Jim Cramer
What I up on? I really did. No, I mean. Cause I worked really, really hard on it, and I really kind of did a lot of damage. I certainly. I'm a gardener. And I know this sounds stupid, but you only get so many gardens in life. This is my 38th, and I let this one go fallow because I had to read the book into the microphone. Into the microphone, as Josh knows. And what happened is that it can only be your voice. And the only time my voice would not be able to hold up after the show, so I had to work on the weekends. And. And it took me two years to write. I was really out of Commission. I wrote 500 pages. And then they said, listen, pick your best 250 basically they want it to be 250. So then like I had this great section about how that if you're gonna go do a GameStop, let it be a Palantir or a Celsius. So they cut out the Celsius and they kept the Palantir and the Palantir makes it seem like the carp messianic guy. But what I was trying to say was like, look, at least have some companies that have numbers, you know, habits have real growth.
- [56:38]
Josh Brown
Oh. So if you want to have this group movement where everyone buys the same stock, the underlying should not necessarily be a video game retailer.
- [56:46]
Michael Batnik
Don't buy bullshit.
- [56:47]
Jim Cramer
Yeah. And then I also said, let me tell you a good balance sheet versus. But you know, I said I'm going to take, I remember telling my wife, I'm going to take on the balance sheet. So you have to, because if you're going to say people should pick stocks, you have to at least show them a balance sheet. So I had this big like 40 page section about AMC's balance sheet and income statement versus apples. You know, apples is perfect and AMC's was the worst. And they said, okay, Jim, we only have room for one. I said, what do you mean you want? No, it's a contrast. So no, we only have room. We're going to use Apple. I said, no, but Apple's poor. It's a companion. They said, well, you know, we're not going to do AMC because that's bad. And I said, but the whole point is to be able to show people what a bad balance sheet is. And they said, well, Jim, you know, we got to worry about people, people getting through it. So the exigencies of having to write a mass book that I wanted to be read contrasted versus what? Trying to be a serious practitioner of the game. So you have to make too many, I made so many compromises, it drove me crazy.
- [57:49]
Josh Brown
But the good stuff, most of the good stuff made it in.
- [57:52]
Jim Cramer
Yeah. And that's what they, you know, we're.
- [57:53]
Josh Brown
Trying to like sell the book.
- [57:54]
Jim Cramer
No, no, no. Oh no, no. I, I, I, don't get me wrong.
- [57:57]
Michael Batnik
What a piece of, of this book was.
- [57:59]
Jim Cramer
Thank you, thank you for that. I just give you the behind the scenes stuff. In the end, I actually like it.
- [58:04]
Josh Brown
I like the book. I like the book.
- [58:06]
Jim Cramer
Like the thing with my dad and Ms. Mr. Paul is actually called Mr. Hank.
- [58:10]
Josh Brown
But these are the, these are the, these are the stories that help people better understand the investor, the mentality behind the investments. And this is why people need to.
- [58:20]
Michael Batnik
Read the Book, we are bombarded. I've been talking a lot about this. We, we are bombarded with why this is going to end badly. And maybe it does. Fine. But what you are trying to do with the book is to tell people, stiff arm the headlines and focus on the opportunities. And it's not easy, but you can do it, right?
- [58:40]
Jim Cramer
And I keep saying, look, I was in 1982, Dow's at 1,000, walking down the street, and I'm going to Goldman Sachs at 55 Broad. And everyone's telling me it's a terrible time. Interest rates are real high, and the companies out come back and Reagan's a doofus and all this stuff. And even then it was a great time to buy. And I think that, yes, it is absolutely true. I was in the book. I had wrestled with 2007, 2009, you were back even again, not till 2013. So that was a big, long stretch. But the idea is, is that if you believe, if you observe and you have some curiosity and, and you use the ChatGPT and you do the current homework, you might have three or four stocks in your life that are really great. And I know I use the Nvidia and you can say, well, Jim, I had an unfair advantage. But the fact is, is that Jensen asked me to come out because no one would listen to him. That's how I came out. He said, look, I'm going to show you things. No one's listening to me. There was a moment with Jensen where he said, do you think you get me in front of like a Wendy's or McDonald's because this thing understands 28 languages? And I called McDonald's, I called my dad, said, no, that doesn't work for us. Of course, now McDonald's is trying it. But what is amazing is it doesn't take a lot of great ideas to make a million dollars. You just need like three or four. But if they talk you out of it, then you'll never ever make anything in your life. And Larry Fink, whom I really respect, he and I worked, he worked on me very hard. He said, look, you got to get people to invest. These younger people don't believe in anything. And I said, well, look, I match index funds, which are very valid, with let them be able to see Facebook. I mean, I found Facebook because my daughter was a suicide counselor. And she said, I can't get the kids to not to get off this thing. This thing is like coke. You gotta, like, you gotta see if you can't get this guy Zuckerberg to stop doing this because all the people are trying to commit suicide, and it's because their friends are telling them that they're ugly. And it's like, you know, on the one hand, I'm like thinking, well, that's terrible. The other thing I'm thinking, shit coke. This is coke. Legal coke.
- [60:45]
Michael Batnik
All right, Jimmy, we got five minutes.
- [60:46]
Jim Cramer
No, we don't. That's bullshit. Where the. Where are we going? What are we going to do? Yeah, we got to go watch some. It's the next. Put them on. So there's no football right now, right? Yeah.
- [60:59]
Josh Brown
So Michael had this adorable idea where we do. No, I'm. I don't mean it to.
- [61:06]
Jim Cramer
I mean, people have a lot to do.
- [61:07]
Josh Brown
Michael had this.
- [61:08]
Jim Cramer
I'm having more fun than I've had on this damn book tour.
- [61:10]
Josh Brown
We're absolutely having a blast. Michael had this really adorable idea where it would be very fitting, very on brand, to end with a little mini lightning round. What I don't want to do is like, just throw the mic out there and have people tell them. Tell you how much they love you. And. Because that could eat up too much time. So I thought we would throw some tickers slash themes, slash whatever at you. And you could keep these as brief for as long as you want. It's totally up to you.
- [61:36]
Michael Batnik
So there are. There's this missing. Shut up.
- [61:40]
Josh Brown
It's my turn now.
- [61:41]
Michael Batnik
I have the mic that every stock is going up. It's a bubble. It's just not true. There are a lot. There is 170 stocks in the S&P that are down 20%. There is a lot of opportunity. So a couple of weeks ago, Josh and I did Value or Value Trap. So let's start here. Lululemon.
- [61:59]
Jim Cramer
Okay. I love Calvin McDonald, but he has to adopt to. He has to understand that when I go to Costco and they got exact same thing for 17 bucks, he's got to reprogram.
- [62:08]
Josh Brown
Is that the problem there?
- [62:09]
Jim Cramer
Yes.
- [62:09]
Josh Brown
Okay.
- [62:10]
Jim Cramer
Yeah.
- [62:10]
Josh Brown
Not alo, not aloe, but the low end.
- [62:13]
Jim Cramer
And look rich. Richard Glant. He's a good friend of mine. He was the CFO of Costco 38 years ago. And he told me that Lululemon, when they sued them because of the. Their stuff was exactly the same. That was the end of Lululemon. Stock was about 350. So I think it's. I think management hasn't been able to reinvent how do they keep him? I mean, think about that. How did they keep him, Josh?
- [62:37]
Michael Batnik
What else?
- [62:37]
Josh Brown
I would love to get your take. Amazon is flat on the year.
- [62:41]
Jim Cramer
Isn't that something?
- [62:42]
Josh Brown
What the hell is going on there?
- [62:43]
Jim Cramer
Amazon Web Services, and they better do a better. They got to show you 22% growth this week.
- [62:48]
Josh Brown
What's keeping that stock from participating with the rest of the last five years?
- [62:52]
Michael Batnik
What a magnificent underperformer, right?
- [62:54]
Jim Cramer
It is amazing. And I don't want to blame Jassy. I think that what's happened is that Amazon Web Services was doing really great. And then Google Cloud, Thomas Curry came in and obviously Azure and Nadella, he's a very tough guy. But I think the main thing is I take the cue from my son who does software, okay? He does venture capital software, and he says, look, I would never write on Amazon Web Services because it's retail product. You write on OpenAI, you write on Azure, you write on OpenAI, you write.
- [63:27]
Josh Brown
On, like, developing software.
- [63:29]
Jim Cramer
And when you hear, like, the cutting edge, people don't want to write on it, what that really means is that that's the beginning of the end. It means that it's just a product that's meant for retailers. And then they have the outage this weekend. The stock should not have gone up. It was. The algebra was terrible. But I do believe that they are in a scrum against Walmart and Costco on retail. This Amazon Web Services is losing customers.
- [63:55]
Michael Batnik
Behind on AI.
- [63:56]
Jim Cramer
Yep, they're behind on AI. And when I had this discussion with Andy Jassy, I said, look, Andy, you're doing. You don't want to pay Jensen's price, and I get that. And you're doing your trainium and you got your really interesting chips. But. But the fact is, is that no one wants to write on you because they can go to OpenAI and they can write on Nvidia.
- [64:16]
Michael Batnik
Does Bezos pull a Bob Iger?
- [64:18]
Jim Cramer
I'm sorry?
- [64:19]
Michael Batnik
Does Bezos pull a Bob Iger.
- [64:22]
Josh Brown
Or a Howard Schultz or anyone else who's.
- [64:24]
Jim Cramer
Had to come back, he respects Jassy. And that guy Doug, who does retail is really fabulous. I just think that if you're going to. That he's decided to be cheap. He's cheap. He. He won't pay Jensen. And the fact is, is that Musk, if you go over Musk's conference call, there's this moment in the call where he goes, and you know what? Nvidia is the best. And I have to use Nvidia now. Think about that. There isn't anything that he's ever said that he isn't the best. He's always the best. And he goes, you know what? Nvidia is the best. And I was like, yes, I knew that. And Jassy should read that and he should recognize that this whole trust trainium. No one wants to use this stuff.
- [65:05]
Josh Brown
They're not in that carousel of companies that are announcing OpenAI partnerships. They're like, not in. It's like, it seems like there's a cool club that Oracle is in and Sam Altman is in and Amazon is like, not in any of these.
- [65:20]
Jim Cramer
I thought that Anthropic. They have more money in Anthropic than. Yet Anthropic went to Google.
- [65:24]
Michael Batnik
All right. A few other ones we spoke about.
- [65:26]
Jim Cramer
But I'm on this one, by the way. I'm like spending.
- [65:28]
Josh Brown
I got one.
- [65:29]
Jim Cramer
I'm spending a lot of time with Amazon to see if he. You can't be great because I love Amazon, the company. I'm not giving up on Amazon.
- [65:36]
Josh Brown
Palantir, are you as impressed with Alex Karp as he is with himself? All right, so I find him to be really interesting. I'm not long the stock.
- [65:45]
Jim Cramer
I'm curious to come back. Axio says and stuff about it. I. I don't like him. Isn't he a Phil.
- [65:53]
Josh Brown
He's a Philly guy, too.
- [65:54]
Jim Cramer
Yeah. Oh, I told him that. I said, listen, like, you're like a more repulse Philly guy than I am. I gave him a note once. I said, I'm not your enemy. And he goes, yeah. I said, no, that's a peace offering. Yeah, it was like, horrible. He's like a horrible guy. But I think he's real. I think that. And I say that because, like, all the companies that have hired him, the big ones, I've called them and I said, how is it? And they all got to a person say, listen, it's pretty good.
- [66:20]
Josh Brown
I mean, he's on fire. That business is on fire. It's on fire. But it's a too expensive even given how on fire they are, it seems crazy to me.
- [66:28]
Jim Cramer
It Is rule of 80. I think I'm going to end up. It's going to go to killing rule of 80. They're killing it. And look, Boeing just went with them. And Ortberg is a very serious guy. When I say the serious guys, it's like the scene in succession, right? Yeah. Right. Brian Cox are not serious people. Well, it's like a great line because I'm talking about. About people who are serious. Like, Ortberg would not be going to him. I know a kid who went there from From Wharton. And I know his mom. And his mom was saying, you know, they work 24 7. They're all Karp. To them is a hero. Because he's really not imperious at all to them. And that's what makes me like him. Now, I sent that guy Shyam, the number two guy. He had a really good piece about the military last week. I sent him an email on and I knew he wasn't gonna return, but I just said, look, I know you guys despise me, whatever. But then I meet this woman, Wendy, who's in charge of defense. She's head of the defense. She's a Department of Defense at Palantir, which is like a real legitimate Palantir. And she says. She came up to me and Heather was there. She goes, hey, Alex likes you. I said, what? What? Just Alex likes you.
- [67:45]
Josh Brown
Okay.
- [67:46]
Jim Cramer
I said, yeah, yeah, sure. He thinks you're a good guy. If he thinks I'm. And I said, if he thinks a good guy, what does he think about the guys that he really dislikes?
- [67:56]
Michael Batnik
Jimmy. A few other iconic American brands. Take anyone you want. Chipotle, Nike, Starbucks, Chipotle.
- [68:04]
Jim Cramer
That guy. I mean, I love Scott. He's not pulling it off. I mean, I check all these different Chipotle's. My last one went on Sunday night. Dirty. Ridiculous. Used to be nice. I think Elliot Hill is going to turn Nike. It's going to be two quarters because there's too much inventory. I spent a lot. I went to a Dallas Eagles game with him. I really want to find out if the guy's real. I think the guy is very, very real. But New Balance is the one he's worried about because they're better performance. He's not worried about Hoka. Obviously everybody else isn't either after today's number, but I think he's going to be able to pull it off. I really do. That's a nice.
- [68:33]
Josh Brown
Hoka is Deckers.
- [68:34]
Jim Cramer
That's Deckers. Yeah. I don't. And that was a bad. The numbers were. Were mid single.
- [68:38]
Michael Batnik
Chipotle.
- [68:39]
Jim Cramer
No Chipotle. No Airbnb. Jeff changed management. Airbnb.
- [68:43]
Josh Brown
Airbnb, Airbnb, Airbnb.
- [68:45]
Michael Batnik
That's.
- [68:46]
Jim Cramer
No, no. Chesky's an interesting figure because I like him, but he has to bring in someone else to have a bigger vision than he does because he's like, you got like, Dara has a big vision and he has to bring a guy like Tony Shu from Door Dash. Really big vision. His vision isn't big enough. Now when I've mentioned that to him. He's like, I don't have the vision either. So when you say something like that to a guy who's insecure, they say, well, what's your vision? But you say it to a secure guy. Screw. I says, yeah, I got to get somebody else in. I think Brian Nichols going to turn Starbucks big because he was about execution. He was about execution.
- [69:25]
Josh Brown
That stock has been $85 for six years.
- [69:27]
Jim Cramer
I think it's going to be.
- [69:28]
Josh Brown
This is the year I want to buy it.
- [69:30]
Jim Cramer
No, it's going to be. Look, this quarter's still going to be tough. And I know that people are going to get discouraged, go back down to 79. But you know what the problem is?
- [69:38]
Michael Batnik
China.
- [69:38]
Josh Brown
You know what the problem is?
- [69:39]
Jim Cramer
China's got worth 10 billion north of 10 bill. Now, before it was south 10, bill. I know it's splitting hairs, but it's.
- [69:45]
Josh Brown
Something I want to pull the. I want to pull the trigger on these names. Every name Michael just mentioned. Chipotle, Nike.
- [69:51]
Jim Cramer
Don't say because they got to realize they don't think anything, but they're all.
- [69:56]
Josh Brown
35 to 40 times earnings. None of that. We're in a market where even the worst performers, the stocks don't get cheap enough.
- [70:03]
Jim Cramer
No, they have to have an earnings breakout. And I do think that you have to believe in Brian, who I do. And it's tough to just believe in a guy and also have to deal with the fact that everybody else must or else you wouldn't have that high pe. But Elliot is Don Ho wrecked. That did really, really did a major damage to that company. And two CEOs did major damage to Starbucks. That's a long. You're talking about five, six years of just terrible damage. Most brands cannot handle five, six years of damage. They just can't. And so those two. You're betting that the brand's strong enough to have dealt with how horrendous the CEOs were. When I say horrendous, like everyone in this room would have been better than any of you.
- [70:41]
Michael Batnik
Killed the last CEO of Starbucks.
- [70:42]
Jim Cramer
Yeah, that was bad.
- [70:44]
Michael Batnik
That was rough.
- [70:45]
Jim Cramer
I had a decision tree for that in for that piece. I had a decision tree. I had gotten the number. I pulled every stop out to get the numbers for Tim Hortons, which were not gettable, and get the numbers for Duncan, which were not gettable. But I did. I really worked hard knowing about that interview. So I had them. So I said, if he is humble, go with, you know, I understand it's fine. If he's not humble. Just give him everything he's got.
- [71:09]
Michael Batnik
I think you got him fired. I really do.
- [71:12]
Jim Cramer
No, I know.
- [71:12]
Josh Brown
All right, last one, last one. What is. What. And this is not a recommendation to the audience. What is your favorite stock right now?
- [71:20]
Michael Batnik
10 bag.
- [71:21]
Jim Cramer
No, no, I have two. I have two stocks that I love.
- [71:24]
Josh Brown
Right, guys? Will we take two?
- [71:26]
Jim Cramer
I have two stocks. Take two.
- [71:28]
Josh Brown
All right, we'll take two.
- [71:29]
Jim Cramer
All right, first of all, we're not like your publisher.
- [71:31]
Josh Brown
We'll take two.
- [71:32]
Jim Cramer
First of all, I. I actually love the stock of Boeing.
- [71:37]
Josh Brown
Really?
- [71:37]
Jim Cramer
Yeah, I do.
- [71:38]
Josh Brown
Because.
- [71:38]
Jim Cramer
Because they've solved the. They've solved the construction problems.
- [71:42]
Josh Brown
Okay.
- [71:43]
Jim Cramer
And the demand is incredible.
- [71:44]
Josh Brown
They got. They have their act together.
- [71:45]
Jim Cramer
They got their act together and Kelly's real serious. And they actually won. The fact that they won that fighter plane told you that. The government's not going to give them a hard time.
- [71:53]
Josh Brown
Where does that stock trade today?
- [71:54]
Jim Cramer
It's a two at 219, I think, down from six.
- [71:57]
Michael Batnik
I think you can go to 600.
- [71:59]
Jim Cramer
Yeah, yeah, I think you can go to 300 pretty quickly. Okay. When they get the cash flow, and the cash flow is really.
- [72:04]
Josh Brown
They're in the good graces of the White House again.
- [72:06]
Jim Cramer
They're in. Great. Yeah. See, that really mattered.
- [72:09]
Josh Brown
Airplane demand around the world is as strong as it's ever been.
- [72:12]
Jim Cramer
Right. If Airbus had. If Airbus could meet the demand, then it would be. It wouldn't be so good. But this is. They also have the wide body and they don't have. The non union wide body is doing very well. But the other one is one that people are not thinking about and they got to think about, which is Capital One. Really? Yeah, Capital One.
- [72:29]
Josh Brown
I like the chart. Cof.
- [72:30]
Jim Cramer
Oh, my God. How about that chart? It is. They bought this company called Discover. And Discover has a network like MasterCard and Visa.
- [72:38]
Josh Brown
Discover is a credit card company for people who have no money.
- [72:41]
Jim Cramer
Exactly right. Exactly right. And if you look at their numbers from this last quarter, they had a huge decline in defaults because this guy, Richard Fairbank, I met Richard Fairbank, I was saying in 2007 that Capital One was going to go under. And I get this phone call. I don't know how he got by his phone number. I said, listen, oh my God, I'm here. I'm not getting my proctor. I got like a problem trying to figure it out. He goes, do you have 10 minutes? Like half hour later? Yeah. Are you coming in here? There's a guy up at Columbia Presbyterian. I said, no, I got him I'm talking to this guy from Capital One. He said, well, what does that mean? And I got off the phone, I said, this guy's the smartest guy I have ever seen, and he won't come on the show. He's a very humble guy. But this. Capital One is a rocket ship's a big shareholder. Which one?
- [73:22]
Michael Batnik
Berkshire is a big shareholder of Capital One.
- [73:24]
Jim Cramer
I didn't know that. He's in that.
- [73:25]
Josh Brown
Yeah.
- [73:26]
Jim Cramer
Is he?
- [73:26]
Michael Batnik
Yeah, yeah, yeah.
- [73:27]
Jim Cramer
Yes. Ever since that, he. I don't think he's picking him, you know, so I haven't been checking what he's in. But this. The conference call was just magnificent. It was a magnificent conference call, and.
- [73:38]
Michael Batnik
That'S better than the American consumer. So what a great way to end.
- [73:41]
Jim Cramer
Well, I mean, look, Capital One is the way they're going upscale and downscale, and I urge people not to buy it, but to do everything you can to learn this stuff, do your research, because this one is a monster.
- [73:54]
Josh Brown
Jim, I want to close by just reiterating how appreciative Michael and I are for decades of. Of your commentary and educating all of us. I know the audience feels the same way. You're an icon. You're a legend. This conversation lived up to it, and we love you. Thank you so much.
- [74:11]
Jim Cramer
Thank you.
- [74:12]
Josh Brown
Thank you.
- [74:12]
Jim Cramer
Thank you.
- [74:15]
Josh Brown
All right, guys, I want. I want to let everybody know we're going to be. We're gonna run off the stage so we can get in place. We're gonna do. We'll sign some books, we'll take some pictures, and we'll try to get to everybody. So let us make our egress. Nicole's gonna walk us. Are you walking us off or what? Are we doing music? All right, we want to meet everybody. We'll be out there if you're interested. Thank you guys so much for being here. We appreciate it.
- [74:38]
Jim Cramer
Thank you. Sa.