Jim Cramer didn't think it was totally insane that Google rallied 4 percent on Tuesday following its announcement that it will create a new holding company called Alphabet.
"In fact, I think the stock deserved to run a lot more," the "Mad Money" host said.
However, considering the beating that the averages took on Tuesday, Cramer was impressed that it was able to withstand the massive amounts of selling and enjoy the move.
Cramer has heard many investors compare the newly formed Alphabet to Warren Buffett's structure of Berkshire Hathaway. This is because Buffett has various disparate businesses under one roof, and he lets them do what they want in order to generate the best returns.
For instance, on Monday, Buffett spent $37 billion to purchase aircraft parts maker Precision Castparts. Yet, aircraft parts have little to do with some of Buffett's larger business units, such as reinsurance, pipelines or rails.
"But I think a far more apt analogue for Alphabet is the recent transformation of Amazon," Cramer said. (Tweet This)