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The 3 Best Performing Stocks of the Last Decade

Wednesday, 7 Sep 2011 | 7:26 PM ET
Top Performing Stocks Countdown
Mad Money host, Jim Cramer says investors should own stocks that are levered to long-term secular growth trends and highlights three top performers.

Cramer thinks investors should fight to pick winning stocks, so on Wednesday's "Mad Money," he highlighted the top performers of the last decade.

"It’s only by learning from the winners of the past that we can understand where we’ll find the winners of the future," Cramer said. "If you know what has worked, you can build a shopping list of what will work and then buy those stocks into weakness."

The best-performing stock of the last decade is NetEase , a Chinese online gaming company. NetEase has posted a 30,456 percent gain over the last ten years, Cramer said. Cramerians would have missed this move, though, because Baidu is the only Chinese stock Cramer has been behind. That said, he noted NetEase does have a powerful combination in the Internet and gaming space.

"We know that Electronic Arts also has both now and Zynga, the social gaming company, will be coming public," Cramer noted. "but I wouldn’t be a buyer of any of these right here, although Electronic Arts might be worth buying on a major pullback."

There are, however, two stocks that Cramer thinks are very similar to NetEase. They happen to be among the ten best performing stocks of the last decade, too. Chinese Internet plays Sina and Sohu.com's stock got crushed ten years ago with the dot-com bubble, but unlike most American Internet names, they came roaring back. Still, Cramer wouldn't buy either name right now.

Hansen , a beverage company, is also among the top-performing stocks of the last decade. It's up 17,143 percent in the last ten years. The maker of Monster Energy Drink, Hansen was one of the pioneers of the fast-growing energy drink market. Cramer admits he missed the move, because at the time, he didn't understand the concept or like the taste. Many thought energy drinks were simply a fad, but that's proved to be untrue, as energy drinks are now a permanent, fast-growing part of the $27 billion alternative beverage market.

Today, Hansen continues to innovate. It's been coming out with energy shots, for example. Its latest quarter was strong and the company continues to expand overseas, which is why international sales have been growing at a 54 percent clip. Cramer thinks it's a good buy on a broader market pullback. The stock is currently trading at 23 times next year's earnings, so wait for it to come down before pulling the trigger.

Finally, Deckers has soared 5,744 percent over the last ten years. Cramer has been recommending Deckers for years. He first got behind the stock after former talk show host Oprah Winfrey highlighted its main brand, UGG boots, on her 2005 Christmas special.

"With UGGs, Deckers has built a brand that’s incredibly hot, always in style and most importantly, one that’s not in direct competition with any of the gigantic footwear players," Cramer said. "They built their own niche for expensive, stylish boots and people can’t get enough of them. UGGs are another example of a fad that ultimately proved not to be fad."

The shoe maker recently posted a strong quarter. With the market having tanked recently, Cramer thinks now is a good time to buy this fast-growing stock.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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BIDU
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DECK
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NTES
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SINA
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SOHU
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