Investors are always enamored by growth, and sometimes they are willing to pay anything for it. However, in Jim Cramer's opinion—beauty is only growth deep, and that's how the averages plunged on Tuesday.
"Anything more substantive than that, anything that represents, say, value, quickly takes on the appearance of being worthless," the "Mad Money" host said.
After the bell, Apple reported, and Cramer still thinks the stock is incredibly cheap, trading at just 13 times earnings. But that is because investors are always worried that iPhone sales will be slower than expected, and on Tuesday they actually were slower.
The wave of investor shock took down any stock related to Apple, such as Avago and Skyworks. How low can it go?
"Tug of war. I say own it, don't trade it; the stock's too cheap to sell, but be ready for some downgrades based on a 3 million iPhone shortfall," Cramer said.
However, snap judgments always lead to bad decisions in Cramer's opinion, and he saw them all over the place on Tuesday. Chipotle saw its stock plummet 8 percent after the close because of a story headline and then jump back up after the company explained that things had actually gotten better during the quarter.
"Attention, morons who sold this stock down 40 [basis points]: please stop trading on the Chipotle headline numbers already," Cramer said.