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NEW YORK (TheStreet) -- It's time to stop fretting over the Federal Reserve, Jim Cramer said on "Mad Money" Tuesday. The CEOs of our great American companies aren't worried and you shouldn't be either.
We received great news from no less than four great companies today: Boeing (BA), Honeywell (HON), 3M (MMM) and Whole Foods Markets (WFM - Get Report), but this news was not enough to buoy the overall markets as they chose instead to focus only on the looming Fed announcement.
But make no mistake, the CEOs of Boeing, Honeywell, 3M and Whole Foods aren't glued to their seats waiting on the Fed. They're too busy making money for their shareholders.
Cramer said there's a cohort of investment wisdom that says the only smart way to make money is to invest in index funds. Why take the risk on individual stocks when you can invest in the overall market and take on less risk to make a little less money, they argue. But this method is lazy, said Cramer, and ignores that fact that some companies have excellent management with terrific long-term themes that will trounce the averages every time.
Boeing is benefiting from the need for more fuel-efficient planes while 3M is pursuing relentless innovation. Honeywell is also innovating with new products for autos, planes and refiners while Whole Foods is dominating the healthy and organic food movement. It's these long-term trends, coupled with flawless execution by management, that has allowed these companies to over-perform the averages this year, said Cramer. None of them were overly hard to spot.
Cramer said investors shouldn't get overwhelmed by the market worries and the Fed-speak and most certainly shouldn't sell their stocks for other asset classes. Do a little work, ignore the naysayers and use the market weakness to pick up some of these great stocks at a discount.
More Stocking Stuffers
For the second installment of his "Stocking Stuffers" series, Cramer added a tech stock and a bank to his "nice list" with Google (GOOG - Get Report) and Bank of America (BAC - Get Report), two stocks he owns for his charitable trust, Action Alerts PLUS.
Google is the safer, less expensive way to play the surge towards everything social, mobile and the cloud, said Cramer, and there's no denying that Google is the king of online and mobile advertising. And with that ad spending on the rise, it's no wonder Google's gross profits were up 18% in its most recent quarter.
Google also has over $53 billion, or $167 a share, in cash on its books for acquisitions and other exciting growth opportunities. Yet, for all its positives, shares trade for just 20 times earnings despite a 16% growth rate. Cramer compared that to Facebook (FB), which trades at 48 times earnings with only a 30% growth rate.