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Cramer: Best-of-breed stock picks circle back

When it comes to best-in-breed stocks, the good ones always come back. They can't help it; success is what they do.

They might sneak off quietly or even frustrate you for a while, but eventually they will always circle back. Jim Cramer knows that is the time for investors to cash in.

"Best of breeders don't sell off much, and they don't stay down long," said Cramer.

That is why when investors get a chance to buy into a best of breed because of the Federal Reserve or Chinese slowdown, you scoop it up with both hands.

However Cramer reminds his fans that the secret to these stocks it to exhibit a huge amount of patience, and don't lose conviction. They will circle back eventually.




A Chipotle Mexican Grill restaurant is shown in New York.
Scott Eells | Bloomberg | Getty Images
A Chipotle Mexican Grill restaurant is shown in New York.

For instance, Bristol-Myers Squibb has been a long time favorite of Cramer. This stock jumped tremendously on Thursday when results were released that 41 percent of patients taking the experimental lung cancer drug Opdivo were still alive one year after.

Though the company and the stock are doing wonderful things, Cramer said there is no need to sell Bristol-Myers. In fact, he wants you to wait for the stock to come down further and buy more.

Disney is another best-in-breed pick for the "Mad Money" host. The stock recently came down 10 percent because people were worried about how fears of Ebola would impact theme parks.

If anything, this is an opportunity, Cramer says. He saw it as investors getting a chance to buy a best-in-breed stock at a major discount.

A few other best-in-breed favorites for the "Mad Money" host are Chipotle, Honeywell and 3M.

"They don't make excuses. They don't have to. Because they deliver through thick and thin, because that's just their DNA."

So watch the best in breeders like a hawk, and look for that small window of opportunity to buy the stock. Cramer knows that these stocks have success ingrained into their DNA, and will pay off in the long run.



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