Bud isn't diversified as far as Cramer is concerned. He has two materials companies - USG and FLS - a no-no in Cramer's guide to diversity. He advises Bud to get out of Flowserve and buy a financial. Bank of America or Goldman Sachs would do.
Hallelujah! Talk about a portfolio! Cramer calls this one the "epitome of diversification." Dave's got one of Cramer's favorite tech companies (Apple) alongside one of Cramer's overall favorite companies (Altria), right next to Caterpillar - a stock in Cramer's charitable trust. Rambus is the speculative stock here, which is fine, because 20% of a portfolio is allowed to be speculative according to Cramer's rules.
"Is [this] not, if we look up diversification on Wikipedia, exactly what we want? Well played! Well done!" Cramer says.
Jim's charitable trust owns Goldman Sachs, Caterpillar, Toyota, Altria and Johnson & Johnson.