Cramer's 'Mad Money' Recap: Piggybacking on Master Investors

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When power players such as Warren Buffett, Kirk Kerkorian and Carl Icahn invest their money in stocks, people pay attention, Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

Sometimes piggybacking off big money mangers is "better than coming up with your own ideas," he said. "Piggybacking can work."

Market players can make money by correctly figuring out which stocks are going to be in style next, because once a stock is in style, it will stay in style for a while until it's played out, Cramer explained.

People piggyback off these master investors not necessarily because they have better ideas but because the mimicked stocks are the ones that tend to do better during good days and are among the first to bounce back after bad days, he said.

A stock Icahn has owned for a while is Vector Group (VGR Quote), a small, high-yielding cigarette company.

Icahn, Cramer said, has a 20% stake in Vector. However, Cramer doesn't want people to buy it just because Icahn's in it. Instead, he wants investors to do their own homework and see if Vector works for them.

The best part of this story, Cramer said, is the stock's 8% yield. It's difficult to find a stock with good fundamentals and such a high dividend, he said. Vector's two businesses are cigarettes and real estate.