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- CNBC’s Jim Cramer on Tuesday told investors they should focus on finding companies with solid products and long-term potential instead of concerning themselves too much with day-to-day fluctuations.
- Cramer gave two case studies of companies he sees as long-term success stories: semiconductor manufacturer Nvidia and drug maker Eli Lilly.
CNBC’s Jim Cramer on Tuesday advised investors to focus on finding companies with solid products and long-term potential when trading on the market.
According to Cramer, day-to-day stock movements can be confusing and sometimes hold little weight. When you invest in an individual company with commodities that can turn a profit in different economic settings, you’re more likely to see success, he said.
“Put simply, most people don’t trust the market anymore. They don’t trust CEOs. They don’t trust individual companies. There is endless skepticism and little sincere belief,” Cramer said. “A lot of it comes down to the fact that the day-to-day action rarely makes much sense — so much trading, so much trying to game things, stocks going up or down for reasons that have nothing to do with the underlying companies.”
Cramer pointed to semiconductor firm Nvidia, saying he’s seen its potential for years. He even named his late dog after the company. Nvidia stock has had great success due largely to its products, chips that are essential for many generative AI programs. Nvidia’s products have the potential to revolutionize the manufacturing industry, Cramer said.
Cramer also highlighted drug maker Eli Lilly, which was up nearly 15% by Tuesday’s close after reporting a successful quarter and a promising outlook for its diabetes treatment drug, Mounjaro. Cramer thinks the medication could also be revolutionary. It is currently only approved by regulators to treat diabetes, but could soon be cleared to treat obesity. Cramer noted that Lilly’s success has already caused the stock of other medical device companies to take a hit.
“You can potentially make big money by keeping your eyes and ears open, as long as you suspend your corrosive, sardonic, skeptical, overly critical self and accept the reality that sometimes companies invent amazing things that generate hundreds of billions or even trillions of dollars of wealth,” Cramer said. “You can grab some of that wealth, you can claim your fair share, but only if you are willing to believe.”
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Eli Lilly and Nvidia.
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