With football season upon, Cramer on Wednesday thought it was time to pick his fantasy team. Not for the NFL, though—for stocks. Here’s his diversified portfolio of the top players right now.
As the team’s most valued players, running backs do the heavy lifting, playing all season and scoring the touchdowns needed to win games. In this category, Cramer recommended ConocoPhillips and Nucor . Conoco, “one of the best integrated oil companies in the world,” Cramer said, offers a 4% dividend yield and great management. While the stock has been held hostage to a stagnant oil price, Cramer doesn’t expect that to last given “rapacious Chinese demand.” Nucor, meanwhile, is a play on the US’s need for infrastructure, and Cramer’s a big fan of CEO Dan DiMicco.
For a steady hand, a la Brett Favre, Cramer turned to Berkshire Hathaway’s Warren Buffett. Investors get great railroad and insurance companies in Burlington Northern and Geico, in addition to “a lot of gadget plays,” Cramer said, like pipelines, steel companies and preferred investments “that throw off vast sums of cash.” Plus, is there anyone more dependable than Warren Buffett?
If you’re looking for fast growers, Apple should be at the top of your list. Cramer remains confident that the stock will reach $300. Still, it’s an obvious pick, so you’ll need some backups. Try Teva Pharmaceutical , a 14% grower trading at 11 times earnings, or Medco Health Solutions , growing at a 17% clip with a 13 price-to-earnings multiple. Teva has taken a hit because the Street fears a coming patent expiration, something Cramer said wouldn’t happen as quickly as investors expect, and that has made the stock “ridiculously undervalued.”
Just like in fantasy football, where you pick an entire team’s defense rather than individual players, Cramer recommended just one exchange-traded fund for your portfolio: the SPDR Gold Shares ETF . Gold protects against both inflation and deflation, and September has been one of its top-performing months for nearly two decades. Stay tuned in October, though. Cramer said he might be switching this pick to silver, specifically the iShares Silver Trust.
We want consistency in a place kicker, Cramer said, “and nothing’s more consistent than the General: General Mills.” CEO Ken Powell reiterated his guidance today, even while some of General Mills' competitors struggle. Also, there’s the 3% dividend yield, which is a steady source of income to tide you over while the rest of the portfolio plays its part.
When this story published, Cramer’s charitable trust owned Apple, ConocoPhillips, General Mills, Medco Health Solutions, Nucor and Teva Pharmaceutical.
Call Cramer: 1-800-743-CNBC
Questions for Cramer? firstname.lastname@example.org
Questions, comments, suggestions for the Mad Money website? email@example.com