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Jim Cramer on why human stock picking is not dead

The process of an investor deciding whether a particular stock will make a good investment is not a thing of the past, CNBC's Jim Cramer said Wednesday.

"People have more horse sense than we think," Cramer said on "Squawk on the Street."

His comment came after BlackRock, the world's biggest money manager, announced it would rely more on computers to pick stocks.

BlackRock CEO Larry Fink has expressed disappointment in the performance of the company's actively managed stock funds, and he has increasingly shifted to focusing on the company's data-driven "scientific" equity teams.

Cramer doesn't necessarily agree. He said investors should own some individual stocks and be "much more empowered."

"I say, 'Look around, do a little homework,'" he said. "If you like it, if you have the temperament, then you should own some individual stocks."

"People at home can control when they commit to capital ... so they'll be in the index fund and then commit capital to be in individual stocks," Cramer said.

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