Jim Cramer’s 5 Best of Breed Stocks

2.  Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 278

Jim Cramer believes Amazon is a best of breed stock in the retail industry because of Amazon.com, Inc. (NASDAQ:AMZN)’s Prime service and cheap prices. Cramer said that Amazon.com, Inc. (NASDAQ:AMZN)’s quick delivery service is changing consumers’ habits in the US as instead of going to a Walmart or CVS store they can get the product they want delivered quickly at their doorstep using Amazon Prime, often at a cheaper price.

“I wish I could tell you to buy the beaten-down retailers, but the one thing I know is that buying best of breed is the way to go, and at this stage in the retail world, there are only three best-of-breed general merchants, and they are Walmart, Costco and Amazon,” Cramer said.

White Falcon Capital Management made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2023 investor letter:

“There are comparable narratives involving NU Holdings, Amazon.com, Inc. (NASDAQ:AMZN), and Teck Resources, to name a few holdings from the White Falcon portfolio. Amazon constructed its logistics network and cloud computing infrastructure using yesterday’s currency, but it is poised to capitalize on this network with the inflated dollars of tomorrow. In essence, we believe we hold wonderful businesses with growing revenue streams and potential for operating leverage – all at reasonable valuations.”