Cramer's 'Mad Money' Recap: Long Live King Louis

Click here for an archive of Cramer's "Mad Money" recaps.

---

"The middle class is disappearing. ...Why fight it when it can make us money?" Jim Cramer asked viewers of his "Mad Money" TV show Friday.

That's why he said it's time to own what he calls the General Electric of luxury, a stock that caters to the rich. And that would be LVMH, otherwise known as Louis Vuitton.

To buy it, he said to pick up the stock on the Paris stock exchange, because the American depository receipts trade on the pink sheets and LVMH is a stock to hold on to rather than a trade.

The luxury retail company just reported what Cramer believes was a good quarter, but more importantly he sees more good quarters ahead. And the fact that the stock is down means that it's an opportunity to buy.

Why does Cramer think of it as a high-end fashion conglomerate? Because the company is more than just handbags. It also owns cosmetics retailer Sephora, Champagne house Moet & Chandon, Swiss watch maker TAG Heuer and French fashion house Dior, among many other luxury brands.

Plus, the company has pop culture cache, with rappers and R&B stars promoting LVMH's products for free in their music. "They don't call Kanye West the Louis Vuitton Don for nothing," Cramer said.

LVMH can snap up small fashion labels out there that are hemorrhaging money, and it's a huge player in Japan, with it's Japanese business growing 12%, Cramer said.

Japan, not the U.S., is the most important luxury market in the world, he reminded viewers.

A caller asked if counterfeit Louis Vuitton products would hurt the brand. Cramer said that counterfeiting can be seen as a verification of the company's greatness.

And he said that there's room enough in the luxury market for other players like Coach(COH Quote) and Ralph Lauren(RL Quote). Plus, LVMH is a more diverse company.