Jim Cramer says investors should look for solid companies with a strong future, and not be intimidated by naysayers.
Investing isn’t about trading pieces of paper, it’s about owning a small piece of great companies that will prosper over the long term. That’s what Jim Cramer told his Mad Money viewers Tuesday after a rough start to the week on Wall Street.
The pundits are still out in force, proclaiming that the Federal Reserve needs to accelerate its actions to stop inflation, even if that means destroying the economy. But rising interest rates didn’t deter Microsoft (MSFT) – Get Microsoft Corporation Report from announcing Tuesday it will acquire gamemaker Activision Blizzard (ATVI) – Get Activision Blizzard, Inc. Report, nor did it stop Unilever (UL) – Get Unilever Plc Report from making a bid for the consumer division of GlaxoSmithKline (GSK) – Get GlaxoSmithKline Plc Report.
Shares of Goldman Sachs (GS) – Get Goldman Sachs Group, Inc. Report plunged almost 7% in the session, but the company just closed out a year with record revenues, earnings and earnings per share. Companies and individuals alike are still flocking to Goldman for their premium advice, and that’s not going to change with rising interest rates. What has changed, however, is you can buy Goldman shares for $70 less than you could just two months ago.
Cramer also proclaimed that 2022 could be the “year of Boeing” (BA) – Get Boeing Company Report now that travel is poised to return and the company’s troubles with its 787 and 737Max may finally be coming to an end.
There are plenty of stories like Boeing and Goldman and Microsoft, companies that are in far better shape now than they were two or five years ago. If you’re an investor for the long term, then that’s the only metric that should matter.
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