Jim Cramer loves Twilio (TWLO) - Get Report even though it has an astounding 1,297 forward price-to-earnings ratio based on 2019 earnings estimates, and he also thinks Shopify (SHOP) - Get Report  is great despite that stock's 557 2019 forward P/E. How does Jim decide which high-P/E stocks to buy and which to avoid?

Jim used his latest monthly video-conference call Wednesday to unveil the process he uses to pick such "super-high-growth" stocks.

"You have to have the guts to say: "My homework is right, the market is wrong,'" Cramer said. "That's something that's so hard to do that you need an incredible amount of fortitude to pull it off."

Jim's video-conference call was only available to members of his Action Alerts PLUS club for investors, but you can sign up for a free 14-day trial membership and listen to a full replay.

Club membership includes exclusive access to Cramer's private video-conference calls each month, in which Jim gives his latest market outlook and answers e-mailed questions from club members. Membership also includes lots of other great benefits, including:

  • A complete rundown of all of stocks that Jim holds his charitable trust;
  • E-mail alerts that give you a chance to buy or sell any stock before Jim makes a trade for the trust;
  • Custom research throughout each trading day from Jim and his team of stock-market analysts. You get to see what Jim is watching every market day as he and his team make investment decisions.

Click here to join Action Alerts PLUS today!

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