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Cramer: 4 CEOs with the right moves

Tuesday, 17 Dec 2013 | 6:02 PM ET
4 winning CEOs on top of their game: Cramer
Tuesday, 17 Dec 2013 | 6:00 PM ET
Mad Money host Jim Cramer profiles 4 CEOs that are building value for shareholders; independent of the Fed.

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

In sports, players managed by the right coach can vastly outperform players managed by the wrong one.

Why Wall Street doesn't think the same exact principle applies to major companies baffles Jim Cramer.

"In sports, it's taken as a given that a Bill Belichek coached team is a better team than one coached by someone who is his acknowledged inferior," Cramer noted Yet for some reason pros on Wall Street "believe that all corporate coaches, aka all CEOs, are pretty much created equally."

The Mad Money host thinks nothing could be further from the truth and by following top management and monitoring 'the moves' made by key executives, Cramer thinks you can make some pretty bankable conclusions about a company.

Peepo | Vetta | Getty Images

"I would contend that Boeing CEO Jim McNerney, Honeywell CEO Dave Cote, 3M CEO Inge Thulin, and Whole Foods co-CEOs John Mackey and Walter Robb are the kinds of coaches that you can get behind," Cramer said.

"They are great captains who can lead their institutions through whatever happens on Wednesday with the Fed, or the next day or the next. Therefore these companies aren't constrained by the words of Ben Bernanke or Janet Yellen for that matter."

To support his thesis, Cramer noted the following developments.

"Boeing recently announced an astonishing 50 plus percent increase in its dividend, bringing the yield up to a respectable 2.14%, along with a $10 billion stock buyback, equal to over 10% of the float," Cramer said.

"3M announced a 35% dividend bump, taking the yield to 2.6%, and a huge boost in its buyback over the next three years."

"Honeywell confirmed some aggressive forecasts that people feared would be curtailed and said it's on track to meet its 2014 targets despite government cutbacks."

"And Whole Foods announced plans to build out new stores taking the total above their peak US forecast of 1,000," Cramer said.

Cramer sees each and every one of these developments as a touchdown or a homerun or a successful shot on goal in a bigger game to dominate a trend or theme.

Therefore, as you pick stocks, Cramer recommends monitoring the performance of the CEO and noting developments such as these. If you see something similar, Cramer thinks you can take it to mean these teams are winning teams.

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Looking at the companies mentioned above, Cramer says the proof is in the pudding.

"Boeing's up 80% this year, 3M's rallied 41%, Honeywell's gained 41%, and Whole Foods is tied with the S&P, up 25%," Cramer said.

"Why is this so important to me? Because I want you to own stocks. I want you to participate in the great capitalist wealth creation engine by picking CEOs you want to invest with who are doing a terrific job of surfing long-term themes," said Cramer.

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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