Jim Cramer Discussed These 11 Stocks Recently

5. Colgate-Palmolive Company (NYSE:CL)

Number of Hedge Fund Holders: 54

Discussing Colgate-Palmolive Company (NYSE:CL) and how packaged goods stocks can take a turn for the better or worse depending on the cycle, Cramer explained:

“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.”

Colgate-Palmolive (NYSE:CL) is a global producer and distributor of consumer products, recognized for its diverse portfolio of brands, including Colgate, Protex, Sanex, Meridol, Softlan, and Ajax.