Was Jim Cramer Right About These 12 Stocks?

6. Procter & Gamble Co (NYSE:PG)

Number of Hedge Fund Investors: 76

Cramer saw Procter & Gamble (NYSE:PG) as a strong company suffering from overexposure to China.

“If Procter hadn’t gone so all in on China, I think it would have made the quarter and its stock would have avoided today’s nearly 5% sell-off.”

At the time, Cramer warned that stocks heavily reliant on China were getting crushed.

“Next, if you own stock in a company that’s expanded heavily into China, it’s being killed right now […] That’s become a serious problem for the market, and I don’t see it getting better anytime soon.”

While he still believed in Procter & Gamble’s long-term strength, he wasn’t in a rush to buy back then.

“This is a fantastic company, and I think the stock will come back. We sold some Procter at $166 for the Charitable Trust, and we’d like to buy it back, but it could be restricted for some time.”

Although the stock rose shortly after the episode aired, it has now returned back to almost the same starting point, with a flat 0.7% return since then.

Cramer has also addressed PG in a more recent show, saying:

“For example, there are a bunch of excellent well-run consumer packaged goods. They call them CPG companies. Maybe you want to buy Procter & Gamble, a long-time favourite. There are lots of logical reasons to like them, but like I told you earlier, logic is rarely what drives the stock market on a day-to-day basis. […] Procter, like all consumer-packaged goods plays, is a recession stock because its earnings tend to hold up during a slowing economy, its stock roars when we get lousy economic data.”