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Cramer: The Anti-Buffetts Are Back

Monday, 6 May 2013 | 6:08 PM ET
The Oracle of Omaha
Monday, 6 May 2013 | 6:00 PM ET
Mad Money host Jim Cramer dissects Warren Buffett's investing strategies, and encourages investors to have their own trading strategy.

There's a battle going on right now between investors who now regard safe stocks as dangerous, and those who want to wait it out and hope those stocks come back.

For example, billionaire investor Warren Buffett has zero interest in timing the market, Jim Cramer said Monday. Instead, he wants to own a great portfolio of companies.

Warren Buffett
Lacy O'Toole | CNBC
Warren Buffett

Back when Buffett bought H.J. Heinz, the market's big participants were eager to mimic him.

However, buyers in the current market are sensing that the economy is getting better, and therefore they are more interested in dumping the "tried and true brand names" and jumping on cyclical stocks.

"The anti-Buffetts, they're back," the "Mad Money" host said. "They are buying anything that's industrial … They are frantically taking oils and rails ... They are even buying stocks like Cliffs Natural Resources ... the iron ore outfit with the worst prospects of any major company I follow."

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Cramer has been there—when he was a hedge fund manager, he tried to imitate Warren Buffett, but he soon found out that his investors wanted their money sooner rather than later.

Money managers who offer higher-yielding safety stocks think they can own hold onto them and be brave like Buffett, but investors don't think like that, Cramer said.

"The Buffetts will become the anti-Buffetts … They will balk rather than run the risk of falling behind the averages," Cramer said. "And they will participate in the Wall Street fashion show so they can prove to their investors that they are flexible and are not Warren Buffett and never will be."

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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