Cramer's 'Mad Money' Recap: Types of Stocks Worth Owning

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

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Editor's note: The following is a recap of various "Mad Money" segments that first were broadcast in June. They were included in a rebroadcast Aug. 14.

Three Types of Stocks (June 23)

In a special "best of Mad Money" show, Jim Cramer told viewers there are only three kinds of stocks worth owning. They are high-growth, consistent-growth and value, he said.

Too many people don't have a method when investing in stocks, but when people buy a stock, Cramer believes they should know precisely what they want out of it.

Cramer advised picking one of the groups or investing a little in each of the three. However, pick only best of breed, not the second best, he emphasized.

For people who like high-growth stocks, he recommended Panera Bread (PNRA Quote).

The company has consistent high growth, and Cramer likes it more than Starbucks (SBUX Quote).

Even when the country was going through a protein-diet phase that shunned carbohydrates, Panera reacted by coming out with great salads, he said.

For consistent growth, Cramer recommended General Mills (GIS Quote).

It got an upgrade from Merrill Lynch because of consistent growth potential. Cramer believes that share buybacks and dividend increases are in the cards for General Mills.

A great value stock is construction-services company Walter Industries (WLT Quote), Cramer said.