Warren Buffett always talks about investing in America for the long-term, and owning the best of the best stocks to generate more wealth.
Jim Cramer used the notion of long-term investing to take a look at the stocks that rallied the most, from the time when the Dow Jones industrial Average was at 10,000, to its latest level at 20,000.
He boiled it down to five winners that were totally achievable, and in some cases downright obvious.
"They are here because management has been terrific, innovation extraordinary and their attention to customer's superb. Those are difficult traits to erase even if [President] Donald Trump fails to get much done," the "Mad Money" host said.
The biggest winner since the Dow was at 10,000 was UnitedHealth, which has more than quadrupled in the last decade. There wasn't much competition, and UnitedHealth pulled out of the Obamacare when it realized it wasn't making money.
That move made it the only healthcare company worth owning right now, Cramer said, because it's not stuck in Obamacare if it goes away.
Next was Home Depot, which has tripled in the last 10 years. It was able to pull off such strong numbers during the worst housing recession in history, which was nothing short of amazing to Cramer. It used the downturn to solidify its position in the market.
No. 3 was Apple, which has also more than tripled in the same period. This is what happens when a company has the best and most sought after product. When the stock was at $93, naysayers were convinced Apple's best days were behind it.
CEO Tim Cook came on "Mad Money" and told Cramer he disagreed and laid out a multi-year strategy. The stock is now at $121.
Visa was next on the list as the paper-to-plastic play in the payment space. While Cramer thinks there are years of growth ahead for the company, he is worried that its CEO Charlie Scharf just retired, making him less certain about Visa's future.
The last player was Disney, which aside from Apple is the most obvious stocks in the world to buy for Cramer. From its movies and theme parks, it has cornered the kid market. The stock has been down lately on worries about ESPN subscriptions.
All five of these stocks were integral to the Trump rally. Additionally, most will benefit from lower corporate taxes and repatriation of foreign assets, making them prime picks for Cramer as the market powers higher.
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.