Jim Cramer Discussed These 11 Stocks Recently

6. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 81

Cramer mentioned Johnson & Johnson (NYSE:JNJ) and emphasized analyzing why packaged goods stocks are gaining or declining.

“If you buy these stocks because you believe in the business but then they go higher as part of a sector rotation that has nothing to do with the business, you still gotta win. The bank isn’t gonna tell you that they can’t take that money because they don’t accept profits from rotations. But you don’t wanna get caught with your pants down because the market suckered you into believing that Procter and Gamble was going up based on the fundamentals, when really it was benefiting from rotation into the whole consumer packaged good stock sector, you know the Colgate, JNJ.

This is what I meant earlier about filtering out the signal from the noise and it is hard to do. Why? Because there’s something called confirmation bias. When you have a thesis and new evidence seems to prove your thesis correct, the natural thing is to believe you are right all along. You should approach that feeling with skepticism.”

Johnson & Johnson (NYSE:JNJ) ) is a healthcare company involved in the research, development, production, and promotion of a wide variety of healthcare products. At the beginning of the year, whilst discussing the company, Cramer said:

“The market has turned against these kinds of stocks viciously. Too slow growing. I think you can put either way though and make good money just by reinvesting their juicy dividends.

Doesn’t help that all pharma’s are under the microscope as President Biden rushed out a series of drugs that Medicare will try to get better prices for. This is the one part of the Inflation Reduction Act that actually reduces inflation at the expense of the drug companies.”