But even a seasoned pro like Cramer can make this mistake. One of his charitable trust's biggest blunders was losing its trust in Bed Bath & Beyond (BBBY). Cramer bought the stock in the fall of 2012. He loves going to the store and, more important, he loves the company's regional and national expansion.
Historically, the stock tended to be too expensive for his tastes. When it pulled back to $59 per share from $75 per share in the summer of 2012, it looked cheap enough to buy -- but the stock began rebounding too fast. Cramer, having done his homework, decided to wait for the next selloff to pounce.
The next quarter, Bed Bath & Beyond reported unimpressive numbers. The stock got pounded and Cramer's trust started a position. After the next pullback, the trust bought more.
Every subsequent dip, the trust bought more until it became one of AAP's largest positions. By November, Bed Bath & Beyond was weighing the portfolio's total performance down. Cramer began losing his resolve. He couldn't take the little decline every day. After BBBY finally climbed up to about halfway where the trust had bought it, he decided to take the hit and sell out.
Cramer was elated, a huge weight lifted from his shoulders. Then the company started soaring, and Cramer was too traumatized to buy back in. If he'd stuck with the stock, it would've been one of the biggest gains in the trust's history.
The lesson? If you've done the homework and have conviction about a stock, don't give up on it just because it's going lower and you can't take the pain, Cramer said.
In the Lightning Round, Cramer was bullish on McKesson
(MCK), Plains All American Pipeline
(CMI) and New York Times
Cramer was bearish on Alpha Natural Resources (ANR) and iRobot (IRBT).
Executive Decision: John McConnell
This is the year that the U.S. economy's going to pick up some speed, Cramer said, so you're going to want to pick up some cyclical smokestack stocks for your portfolio.
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