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Picking stocks for the generations

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

Investors come in all shapes and sizes and so do their investment needs.

Therefore, a stock that Cramer likes a lot, may be right for one person but not the next.

Although the "Mad Money" host is drawing broad conclusions that should apply to most viewers, his conclusions may not be right for every individual.

And of all the factors that may influence whether a stock pick is right for you, Cramer thinks nothing matters more than your age.

Sam Edwards | OJO Images | Getty Images

"If you're young, I think you should embrace a larger degree of risk," Cramer said.

That is, indulge yourself in "more speculative, single-digit stocks where the potential upside is huge."

Of course Cramer realizes if a stock is speculative, downside risk may be substantial too, but he feels if you take a calculated risk, and invest money you can afford to lose, and do proper research then odds will be in your favor.

Workday, Cornerstone and Yelp are three of many stocks that meet this criteria.

"These are all companies with phenomenal earnings growth but no earnings as of yet. The key thing is to accept that these companies all face such amazing opportunities they aren't valued by conventional measures," Cramer said.

In all these cases, the "Mad Money" host is a buyer.

But the "Mad Money" host isn't you. That is, if you're a more mature investor, Workday, Cornerstone and Yelp may not be buys, after all. That's not to say Cramer doesn't think spec stocks belong in an older person's portfolio, it's simply that an older person may want to limit risk.

"That's where a stock like Pinnacle Foods comes in," Cramer said. You will never ever shoot the lights out with the maker of Duncan Hines cake mixes and Birds Eye vegetables but you should get some nice steady growth."

Therefore, Cramer is a buyer of Pinnacle, too.

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If it seems contradictory that Cramer could feel bullish about a young cloud play and an established consumer goods stock at the same time, he said to think of it this way. "Stocks, in a weird way, can be like shoes. There's no one size that fits all. You have to know your size."

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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WDAY
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YELP
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