Cramer's 'Mad Money' Recap: Crocs and Bull Story

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

---

Although grain prices are getting higher, "it's important to own cereals for the next two months because they are recession-proof," Jim Cramer told viewers of his "Mad Money" TV show Thursday.

Particularly, Cramer said he likes General Mills (GIS Quote).

There is nothing more important than knowing what you own because if people don't know what their stocks are levered to, they won't be able to understand why the stocks move the way they do, Cramer said.

In the case of cereals, it doesn't matter that grain prices are increasing because grain isn't the biggest cost for cereal makers, he said.

"When you pay $54 a share for General Mills, you're not paying for a company levered to these ingredients," Cramer said. Instead, you're levered to the cardboard the cereal boxes are made out of, the plastic the cereal is sealed in and the fuel used to transport the cereal, he said.

Cereal companies are "worth investing in," Cramer said. "Grain doesn't matter."

If a box of cereal costs $3, then only 33 cents of that goes to the cereal's ingredients, he said. Though ingredients may be getting more expensive, they only constitute roughly 11% of the cereal box's total cost.

In addition, the prices for plastic, cardboard and fuel are declining, Cramer said.