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NEW YORK (
TheStreet) -- Invest in "best of breed" stocks at an early age and your money will grow beyond your expectations, Jim Cramer told a live audience of his
"Mad Money" TV show Thursday.
Kicking off his annual "Family Affair" episode, Cramer revisited his kid-friendly portfolio of five stocks that parents should be buying for their kids.
Cramer noted that while his kid-friendly stocks have handily outperformed the markets, rising 140% versus just 83% for the
S&P 500, it's time to make a few changes to the household names that every kid would recognize.
Cramer said he's still bullish on
Walt Disney(DIS) because that company continues to outperform in everything from movies to theme parks to its
ESPN franchise. He said he's also sticking with
McDonald's(MCD) as that chain reinvents its menu to meet changing appetites around the globe.
Hasbro(HAS) is not making the cut, however. Cramer said a stock like
Whole Foods(WFM) not only offers more growth, but also makes kids aware of healthy eating right from the start.
Another stock not making the grade was
Nike(NKE), a company that Cramer said had too much China exposure. Instead, Cramer advised swapping into
Gap Stores(GPS), the retailer that has turned itself around to great results.
Apple(AAPL), a stock Cramer owns for his charitable trust,
Action Alerts PLUS
. He said that Apple used to beat the estimates quarter after quarter, but those days may now be over. He suggested turning to another household tech name,
Don't be scared away from individual stocks, Cramer concluded. These companies can be bought and held for the long term and teach the next generation of investors the importance of the stock market to their financial well-being.
An Rx for Rite Aid Investors
Cramer had some sobering words for investors in
Rite Aid(RAD - Get Report), our nation's number three drugstore chain. He said after the stock's monster 132% rally since the beginning of the year, it's now time to declare victory and put that money to work in a better chain,
CVS Caremark(CVS - Get Report).