Cramer tells market skeptics to focus on solid companies

CNBC’s Jim Cramer on Tuesday advised investors to focus on finding companies with solid products and long-term potential when trading in the stock market.

According to Cramer, day-to-day stock movements can be confusing and sometimes hold little weight. When you invest in an individual company that can turn a profit in variable economic circumstances, you’re more likely to stay on top, he said.

“Put simply, most people don’t trust the market anymore. They don’t trust CEOs. They don’t trust individual companies. There is endless skepticism and little sincere belief,” Cramer said. “A lot of it comes down to the fact that the day-to-day action rarely makes much sense — so much trading, so much trying to game things, stocks going up or down for reasons that have nothing to do with the underlying companies.”

Cramer pointed to the positive example of semiconductor maker Nvidia, saying he’s seen its potential for years. He even named his late dog after the company. Nvidia stock has had great success due largely due to the fact that its chips are essential for many generative artificial intelligence programs. They have the potential to revolutionize the manufacturing industry, Cramer said.

Cramer also highlighted drugmaker Eli Lilly, which surged 15% Tuesday after reporting a successful quarter and a promising outlook for its diabetes treatment drug, Mounjaro.

Cramer believes the medication could also be revolutionary. It is currently only approved by regulators to treat diabetes but could soon be cleared to treat obesity.

“You can potentially make big money by keeping your eyes and ears open, as long as you suspend your corrosive, sardonic, skeptical, overly critical self and accept the reality that sometimes companies invent amazing things that generate hundreds of billions or even trillions of dollars of wealth,” Cramer said. “You can grab some of that wealth, you can claim your fair share, but only if you are willing to believe.”

We stuck with Eli Lilly because we did the homework, says Jim Cramer

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Eli Lilly and Nvidia.

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