CNBC's Jim Cramer explains why it's worth picking individual stocks in a world of investors that place more value in index funds.
The "Mad Money" host chats with Hasbro CEO Brian Goldner coming off the company's challenging third-quarter earnings report and Logitech CEO Bracken Darrell to get a read on the video conferencing arena.
He also gets insight into the funding gap for businesses founded by women and breaks down why he thinks Beyond Meat's shares have more downside in the future.
CNBC's on Tuesday doubled down on his doctrine that investors should go beyond just owning index funds and also buy individual stocks.
The "Mad Money" host, who preaches that viewers devote at least their first $10,000 to low-cost index or exchange-traded funds said, "If you want to hit it big, well, it's also good to try to pick some individual stocks alongside of those index funds" that can deliver big gains to shareholders.
"I bring this up because lightning's never going to strike that index fund of yours [the way] it struck Biogen," Cramer said.
Biogen shares popped more than 26% during the trading day after news broke that the drugmaker would that it canceled earlier this year. Cramer noted that several pharmaceutical companies have sought to develop a breakthrough medicine for the disease which affects 5 million people in the U.S.
Hasbro CEO Brian Goldner told CNBC that sales are off to a strong start in the fourth quarter.
The toymaker's third quarter proved to be tough, missing top- and bottom-line estimates in its quarterly report that sent shares down nearly 17% on the session. The chief expressed optimism and said shipments picked up "appreciably" in September following two straight months of decline.
"We have a number of new products coming into the holidays," he said in an interview with Cramer. "We said we believe we can grow in the fourth quarter and, as we go forward, we will get through this issue related to the tariffs."
Shares of Beyond Meat are down nearly 55% since its $234.90 record close in late July. The stock fell more than 3% in Tuesday's session and Cramer thinks the bleeding isn't over. The faux-meat company's valuation is too high for its fundamentals, especially with a lock-up period expiring soon, he argued.
"I think Beyond Meat can go lower from here. Did you know that next week, 48 million shares get unlocked? Do you know that's 80% of the share count?" the host said. "Will this money-losing company still be worth $6.4 billion after the lockup expires? If the $3 stock that is GoPro – $3 — is any guide … the answer is no."
A lock-up period is a time frame where certain investors are barred from trading shares of an investment.
Logitech International, the maker of computer peripherals such as keyboards, mice and expensive high-end gaming equipment, saw video collaboration unit sales increase 60% in its latest recent quarter. CEO Bracken Darrell told Cramer that the company is banking on that trend to continue.
"This has gone from zero, 7 years ago, to it's 10% of our total company," he said in a one-on-one interview with Cramer. "So it's going to be a big business for us. We think, one day, this will be a billion-dollar business."
Cramer brought on Victress Capital partners Lori Cashman and Suzanne Norris to break down the funding gap that exists for women-led business in recognition of National Business Women's Week. The private company is an early-stage venture capital firm that focuses on consumer-oriented businesses that are helmed by women.
Women launch 40% of U.S. businesses, yet receive just 3% of venture capital funding, Cashman said.
"The truth is that female founders do have a hard time accessing capital because there's a massive funding gap," she explained. "When we encounter a founder who sees a huge market opportunity and she has a vision and a compelling business plan to execute around that business along with some early traction, we feel that that founder has a right to access that capital alongside anyone else."
"When we look at statistics," she added, "we see that gender-diverse teams outperform their all-male counterparts on both top-line and bottom-line metrics."
In Cramer's lightning round, the "Mad Money" host zips through his thoughts about callers' favorite stock picks of the day.
: "Why do we need a Chinese Netflix? What we do like is Disney with that tremendous tie-up" with Verizon.
TE Connectivity: "I think you stay a long-time holder. I think that's an absolute terrific, never-talked-about company."