Jim Cramer, the host of Mad Money, recently shared valuable investing lessons drawn from his 40 years of experience in the field. He noted that he often emphasizes the importance of discipline over conviction, repeating this message regularly on his show.

“I am constantly on this show telling you that discipline always trumps conviction. I tell it to you over and over and over again. In other words, no matter how much you may love a stock, no matter how enthralled you are with the underlying story, if the rules say sell, you sell it.”

READ ALSO: 11 Stocks on Jim Cramer’s Radar and Jim Cramer Said These 13 Stocks Can Hold Their Value Amid Tariffs

Cramer also highlighted one of his fundamental investing rules: “Bulls make money. Bears make money. Pigs, well, they get slaughtered.” He explained that this phrase serves as a reminder, especially when stocks rise sharply, and investors become overly confident in their gains. Cramer observed that, too often, people get intoxicated by their profits and start believing they are invincible. However, it is precisely at that point of overconfidence that caution is most needed, as acting like a pig can lead to significant losses. He then said:

“Just to be clear, bulls don’t have a monopoly on piggishness. The same idea applies to investors who press their bets too shortly, too aggressively on the short side.”

He pointed out that the same principle applies to those who aggressively short stocks. He explained that while there have been significant market declines, such as the dot-com crash of 2000 and the financial crisis of 2008-2009, most stocks tend to recover fairly quickly. Even during the Fed-induced market downturn in late 2021, those who remained too committed to short positions for too long ended up facing painful losses. By the fall of 2022, markets had rebounded, and those who had not adapted to the changes were left with nothing.

“Why is this rule so important? Simple. One of my chief goals is to help you stay in the game. You know that’s the hardest part of investing. It’s holding on through the difficult periods, taking short-term pains so you can have long-term gains, which is what’s happened in the stock market for, for a century.”

Our Methodology

For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 24. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Jim Cramer Discussed These 7 Stocks

7. Pagaya Technologies Ltd. (NASDAQ:PGY)

Number of Hedge Fund Holders: 24

A caller asked if they buy, sell, or trade Pagaya Technologies Ltd. (NASDAQ:PGY), and here’s what Cramer said in response:

“You know, it’s up so much. It, fintech, there’s only a couple fintechs that have really stayed. I want you to take some profits. Let’s just do it. Let’s just do that. I’m gonna ask you to ring the register.”

Pagaya Technologies (NASDAQ:PGY) is a technology company that uses data science and proprietary AI technology to develop software solutions that help financial institutions and investors originate loans and other assets.

The company recently reported strong financial results for FY’24, with network volume rising 17% to $9.7 billion and $6 billion raised through 17 asset-backed securitizations. Pagaya Technologies (NASDAQ:PGY) also maintained its position as the top personal loan ABS issuer in the U.S. by issuance size. Total revenue and other income increased by 27% to $1.03 billion, while adjusted EBITDA reached a record $210 million, up from $82 million in FY’23.

6. New Fortress Energy Inc. (NASDAQ:NFE)

Number of Hedge Fund Holders: 34

Cramer was asked about New Fortress Energy Inc. (NASDAQ:NFE) and his response was:

“Alright… Well, I don’t know if we’re gonna bring it back. I kind of like it. I would like to do that. But I, New Fortress Energy is this company that we profiled as being not a great company and we are going to continue to say it was not a great company. It’s in the archives. Can’t do anything about it. It’s a bad one.”

New Fortress Energy (NASDAQ:NFE) is an integrated energy infrastructure company that provides services across natural gas procurement, liquefaction, shipping, logistics, and power generation, while also leasing floating storage and regasification units and LNG carriers to customers. Interestingly enough, in October 2024, Cramer stated:

“… This Wes Edens, he is so good. It’s down like three quarters, like down like 75%. I think that you have to stick with it. I’ve been wrong. I’ve been wrong in New Fortress because I believe in Wes so closely. I’d love Wes to come back on the show.”

Over the last 12 months, New Fortress Energy (NASDAQ:NFE) stock declined more than 70%.