Warren Buffett, the CEO of Berkshire and a widely renowned investor, admitted on Saturday that he "made the wrong decisions on Google and Amazon," having considered both stocks with his longtime partner, Charlie Munger.
"I had a very, very, very high opinion of Jeff's [Jeff Bezos, CEO of Amazon] ability when I first him, and I underestimated him," Buffett said at the Omaha, Nebraska investor gathering.
"I've watched Amazon from the start," he continued. "I think what Jeff Bezos has done is something close to a miracle, ... the problem is when I think something will be a miracle, I tend not to bet on it."
But Cramer argued that Buffett and Munger's hesitation on investing in Amazon and Google parent Alphabet could've stemmed from something more generational.
"While these services — Amazon and Alphabet's Google — worked well on the computers, it really was the rise of the smartphone that sent their sales into the stratosphere," the "Mad Money" host explained. "But if you didn't have a smartphone, you were never going to understand this storyline."
The "Mad Money" host still pegged Buffett and Munger, who is vice chairman of Berkshire, as "two of the best investors of all time." But he maintained that without a smartphone, the rise of the cloud could've eluded anyone.
"When you plug into these services, you're plugging into a data center where the cloud resides," he said. "There's simply no way you can comprehend the worth of these companies if you're not actually plugged in."
"To a guy like Buffett, who's very well-versed in retail but not that well-versed in tech, Amazon probably looked like just another retailer," Cramer added.
This could've also explained why Berkshire exited its position in the stock of IBM, a long-standing technology giant that now gets over 50 percent of its sales from products and services tied to the cloud, the "Mad Money" host said.
"Here's the bottom line: because neither Buffett nor Munger used a smartphone, they ended up failing to spot some amazing opportunities," Cramer said. "Ordinarily, I would never, ever bring this stuff up, but they went there themselves so I thought it was fair game. I would've been happy just to praise their brilliance, but if you're going to admit you made a mistake, I think it's fair for someone — might as well be me — to explain why I think it may have happened."
Disclosure: Cramer's charitable trust owns shares of Alphabet, Amazon and Apple.