×

Cramer Remix: The key to successful investing

Seven years ago, the market hit rock bottom, and late CNBC journalist Mark Haines called it in a moment now known as the Haines bottom. To mark the anniversary, Jim Cramer took a look at many of the stocks winning since 2009, noting that many of the top performers were accessible to investors at the time.

"You could have spotted some of the top 15 gainers since the Haines bottom, and those who say otherwise just don't want you to feel empowered about making your own investments. I guess they think you're stupid; I don't," the "Mad Money" host said.

Before reviewing the best performers, Cramer reiterated his mantra that one should not even think about investing in an individual stock until the first $10,000 is invested into an index fund, as he prefers their diversification and low costs.

Additionally stock picking can be a high-risk proposition, thus only discretionary, non-retirement funds should be used to invest, also known as "Mad Money."

Just looking at one's daily routine could have been a great clue for Starbucks. Sure, the stock had its ups and downs, but Cramer has found that the dips were always buying opportunities.

"Recognizing that your own personal ritual is often shared by others can be one of the keys to successful investing, so the stock's 1,292 percent gain may have been the easiest to come by," Cramer said.

Read MoreCramer: Best performers from the Haines bottom

A worker uses a hammer and a letter punch to engrave gold bars at the Kibali gold mine, operated by Randgold Resources Ltd., in Kibali, Democratic Republic of Congo.
Simon Dawson | Bloomberg | Getty Images
A worker uses a hammer and a letter punch to engrave gold bars at the Kibali gold mine, operated by Randgold Resources Ltd., in Kibali, Democratic Republic of Congo.

Amid media speculation of major outflows from China stemming from investors sending money abroad, Jim Cramer says the money is going into gold.

One Wall Street Journal headline in particular, "China, Fighting Money Exodus, Squeezes Business," caught Cramer's eye. It described how the Chinese are trying to move money abroad, and the government is getting nervous and starting to crack down on capital outflows.

"To my eyes, the big takeaway from this piece is 'buy gold.' Why? Because I think a lot of the money that is fleeing China is going into gold," the "Mad Money" host said.

It made sense to Cramer that a Chinese investor would be worried about its devalued currency and slowing economy, thus they would want to hide cash in a hard asset like gold that can retain its value in times of economic chaos.

This would also explain the rally in the precious metal in the past three months.

"I am a big believer in the idea that you should always have some gold exposure simply as a kind of insurance for the rest of your portfolio against inflation or global economic weakness," Cramer said.

Read MoreCramer: Where Chinese investors are hiding cash

Another group that has suddenly caught fire again are the 3D printing stocks, with 3D Systems up 36 percent for the year.

After such an epic move, Cramer took a closer look at whether it is worth it to entertain the 3D printing stocks in a portfolio. 3D Systems has been a publicly traded company in one form or another since 1988, but because 3D printing technology was not cost effective, the stock didn't do much for the first 20 years.

The stock finally started to roar higher in 2011, and a lot of the strength stemmed from multiple acquisitions that 3D Systems did. However, Cramer still thinks the entire 3D printing sector is a wild card.

As for the stock, Cramer still thinks 3D Systems is the most risky of the group. "If you own any, this recent rally is giving you a great opportunity to ring the register and move on. Remember, just because a company is exciting doesn't mean it's investible," he said.

Jeffrey Gundlach
Heidi Gutman | CNBC
Jeffrey Gundlach

Cramer was intrigued by DoubleLine Capital's founder Jeffrey Gundlach's commentary that the recent rally in stocks was simply a small rally within a very large bear market.

"I just don't want you to lose sight that a guy like Gundlach isn't really addressing you, the individual investor, when he says the stock market has 2 percent upside and 20 percent downside. He was simply trying to make the point that the market might be more dangerous than you think," the "Mad Money" host said.

If that is the case, Cramer expects that investors will begin to buy stocks such as Clorox, Kimberly-Clark and Coca-Cola, and fewer will buy stretched oil plays like Transocean. And that made sense to him.

According to Bloomberg, Gundlach's DoubleLine Total Return Bond Fund has beaten 99 percent of all of its peers.

"But like most bond fund managers, he does tend to paint stocks with too broad a brush," Cramer said.

Read More Cramer: Jeffrey Gundlach wasn't talking to you

One of the sectors on Cramer's radar lately has been technology, and with Tech Data helping large companies like Apple, Cisco, Microsoft and Hewlett-Packard, he considered it a great read on the cohort.

Tech Data is one of the biggest wholesale distributors of information technology in the world. Its CEO Bob Dutkowsky has said that it prides itself on being the Switzerland of the IT market that represents all of the warring factions in the industry.

Thus, it was good news when Tech Data reported a strong quarter last Thursday.

"Tech Data has the ability to find hot product segments around the world, in the geography that we cover. So new products, new customers and we can de-emphasize products that aren't performing so well. We do that on the fly, and it's one of the real strengths of the company; our ability to pivot to those opportunities," Dutkowsky said.

In the Lightning Round, Cramer gave his take on a few caller favorite stocks:

Blackstone Group: "I think it's fine. It's not going to run away because there is no IPO market, but I'll bless it."

Allegheny Technologies: "No, the only steel company I am recommending right now is Nucor. I do like Alcoa, by the way, it just got hit."

Read MoreLightning Round: My only steel play I'll recommend