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Cramer breaks down billionaire investments, not all appeal

Wednesday, 17 Jul 2013 | 6:15 PM ET
Takeaway from today's Delivering Alpha
Wednesday, 17 Jul 2013 | 6:15 PM ET
Mad Money host Jim Cramer rounds up all the action from today's "Delivering Alpha" conference, including Trian's Nelson Peltz's push for PepsiCo to buy Mondelez.

(Click for video linked to a searchable transcript of this Mad Money segment)

Although Jim Cramer liked a lot of the investment ideas that he heard at CNBC's Delivering Alpha Conference on Wednesday, he didn't like them all.

At least not for individual investors.

"When you get that kind of firepower in one room, the best thing to do is sit back and digest what you heard and put it in context," Cramer said.

And digest the information, he did.

Following is a breakdown of the investment ideas presented by some top money managers and Jim Cramer's thoughts on whether individual investors should follow the advice.

Adam Jeffery | CNBC

Nelson Peltz, founder Trian Fund

"I have to tell you that when I look at investors whom you can emulate, investors whom we have studied, I know that if you just bought what Nelson Peltz said after he took his stakes you would have made a ton of money," Cramer said.

Therefore, Cramer believes individuals can following Peltz into PepsiCo.

"I was intrigued when he said that he thinks Pepsico, which is at $84 could trade to $178 if CEO Indra Nooyi simply buys Mondelez, the maker of cookies and crackers. And he added Pepsico could still go to $105 without the snack maker."

Cramer also thinks its ok to follow Peltz into DuPont.

"Talk about a stock that's close-to-home. We just heard from Dupont's CEO, Ellen Cullman, in Mad Money's Invest in America series. She told a terrific story about how the company's using science to help feed the world with better seeds, and better foods, while also making the best safety materials imaginable," Cramer said. (Dupont is one of the largest positions in Cramer's charitable trust.

Leon Cooperman, chairman & CEO Omega Advisors

Cooperman presented many stock ideas but the 3 Cramer found most intriguing were Express Scripts, Qualcomm and SandRidge.

"Express Scripts is the most accessible of these names for you at home. It is a topflight pharmacy benefit manager that is making a ton of money and could do even better under the Affordable Care Act," Cramer said.

"Qualcomm is the brains behind the move to 4G in cellphones, consider it a tolltaker of everyone that uses its intellectual property and that's pretty much everybody. The stock's gotten cheap because of negative publicity involving a slowdown in cellphones. It's not one of my favorites but Cooperman's a strong an analyst and his insights are worth noting."

As for Sandridge, Cramer called this stock 'a tough one.' "This one's a call option on oil. If oil goes higher, then Cooperman thinks it could double. But if oil goes down, the stock could be in trouble. "That's not for me. Too risky." Cramer said.

Mark Kingdon, top hedge fund manager and founder Kingdon Capital Management

Kingdon said buy the Japanese autos as a bet on the recovery in Japan. "I would prefer you to own an ETF of Japanese stocks, because I don't want you to be clustered just in autos," Cramer said.

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Jim Chanos, founder Kynikos Associates

Noted short seller Jim Chanos revealed that he is betting against Caterpillar because he thinks the end of the commodity supercycle should generate a dramatic decline in spending by miners.

"A huge part of CAT's business is miners but I don't care to short this company," Cramer said. "That's not for me."

Disclosure: On Wednesday July 17th Jim Cramer owned DuPont on behalf of his charitable trust.

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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