CNBC's Jim Cramer sees far too many investors ignoring a simple formula that has kept him level-headed during his years on Wall Street.
"Newsflash: stocks, by and large, do get cheaper when they go lower. Call me captain obvious for pointing it out, but I think this commonsense wisdom often gets ignored when we're analyzing stocks on a day-to-day basis," the "Mad Money" host said.
Cramer was reminded of the phrase on Tuesday, when Apple launched an array of new products, including a special-edition iPhone X for the 10th anniversary of the first iPhone release.
He was amazed that he kept hearing people asking each other if they would upgrade and being receptive to the new model instead of balking at the $999 price tag.
"I haven't heard anyone say, 'Nah, I just bought the [iPhone] 7.' I'm either hearing, 'Yes, I'll upgrade,' or 'I hope someone will buy it for me,'" Cramer said. "That's incredible. That's what I call consumer product amore. It's the most beloved device I can remember."
But it wasn't that long ago when Apple shares took a nosedive from $131 in May 2015 to $92 in May 2016, and CEO Tim Cook came on "Mad Money" to clear the air about the stock market's premature assumptions about what turned out to be a successful product transition.
"In short, this was a stock that got cheaper as it went down, and if you bought it in the $90s after Cook spoke to us, well, you made a ton of money," Cramer said.