Cramer's 'Mad Money' Recap: Judging Judge Roberts' Portfolio

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In a switch from Jim Cramer's usual opening segment on "Mad Money," he talked politics Wednesday night. Sort of.

Cramer took a look at the investments of John Roberts, the Supreme Court nominee, whose financial statements were made available on Tuesday. Cramer played "Are You Diversified?" with the federal judge's portfolio.

Roberts, who has half of his money in stocks and half in mutual funds, owns too many mutual funds -- which number about 30 -- Cramer said. He should cut the number of funds he owns to about five or 10, Cramer said.

Roberts has 37 stocks in his portfolio, which essentially makes it look like a mutual fund.

Roberts also has close to 20% of his discretionary portfolio in XM Satellite Radio(XMSR Quote).

Cramer says that Roberts, even though he has about half of his portfolio split between funds and stocks is not diversified. Why?

Because he has 47.5% of his stock holdings in technology. That is way too much tech, Cramer said. Do not have more than 20% of your portfolio in any one sector, Cramer cautioned.

What's more, with as many stocks as Roberts has, it is difficult to do the necessary homework on each stock; Cramer recommends that investors spend an hour a week doing homework on each stock in the portfolio. Still, Cramer said, "I don't care who you are, you cannot have half of your portfolio in tech."

The thing that really surprised Cramer, though, was the fact that Roberts has very little oil exposure. Roberts, who owns a small amount of EnCana(ECA Quote), needs to pick up some more oil names, Cramer recommended.

Roberts has only 4% of his portfolio in health care. He has some Merck(MRK Quote), Pfizer(PFE Quote), and Johnson & Johnson(JNJ Quote). Cramer said Roberts should pick up some UnitedHealth Group(UNH Quote) as well. Roberts doesn't have any biotech, either. He should own some Genentech(DNA Quote), Cramer said.

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