Cramer’s a believer that you learn more from mistakes than successes. Sure, he could sit back and gloat about his good calls, like General Cable and Hansen Medical, which have both seen great profits. He could brag about Mastercard , Chipotle and Buffalo Wild Wings, which are up 20%, 21% and 12%, respectively, in less than a week. There’s also Avon and Qwest, and then Charter, which is up 19% since he gave it the nod back on April 10. And Cummins has leapt 24 points since Cramer made his call on it. But that wouldn’t help Home Gamers very much.
So he wanted to focus on the losses, those humiliating mistakes that end up making you a better investor. First up is Vulcan Materials. Cramer liked this stock at $67 and rode it all the way to $128, where he said he’d buy more. Big mistake: Homebuilding is falling apart, and the company missed its quarter, despite Cramer’s prediction that it would hit the numbers. The lesson learned here is to take profits when you’re up that much and the fundamentals aren’t as good as when you first liked the stock.