Though Jim Cramer’s reputation for always recommending stocks set for an imminent price collapse is rooted in reality, his favored picks have performed admirably for the most part.
In fact, the gap between the netizens’ perception of the former hedge fund manager and Mad Money host and his actual performance as an analyst was such that Thuttle Capital’s ‘inverse Cramer’ exchange-traded fund (ETF) – the one made to go directly against the TV personality’s advice – was forced to shutter in early 2024.
Given the setup, investors might think that following Jim Cramer’s most common recommendations would lead to strong stock market results, and they would be correct.
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How Jim Cramer’s two ‘highest quality’ stocks fared in 2024
As Finbold reported on July 26, the Mad Money host opined that near the midpoint of the year, Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL) were the two ‘highest quality’ investments one could make.
Looking first at Nvidia, the semiconductor giant was, at the time, in the midst of a protracted phase of sideways trading that came after the much-discussed 10-for-1 stock split. On July 26, NVDA shares were trading at approximately $112.
In contrast, at press time on December 31, the chipmaker’s stock is changing hands at a substantially higher $138.57.
The rise since the middle of 2024 means that investors who quickly decided to follow Cramer’s advice by buying $1,000 worth of Nvidia shares would, on the final day of the year, have $1,237 – the investment would have appreciated 23.7%.
How the Apple stock pick both proves and disproves the ‘inverse Cramer’ meme
The situation for Apple is both similar to NVDA and different. The big tech company was struggling in the stock market at the start of 2024, and, at the time Jim Cramer described it as a ‘highest quality’ investment, it appeared to have just given up on its early summer rally.
Indeed, AAPL shares’ performance in the immediate aftermath of the former hedge fund manager’s statement appeared to confirm the online joke as their price collapsed from about $218 on July 26 to $207 on August 5.
Nonetheless, Apple stock recovered significantly by press time on December 31 to its press time price of $252.32, meaning that a $1,000 investment made near the midpoint of the year would have appreciated 15.73% to $1,157.43 on its final day.
Overall, had an investor purchased $1,000 each of Jim Cramer’s most favored stocks in late July, they’d have profited $394.43, and if they split the amount between the two, they’d be $172 richer just ahead of New Year’s Day.
Featured image via Shutterstock
