Cramer Reacts to Berkshire's Amazon, Valeant Comments

Jim Cramer says the most important takeaway from the Berkshire Hathaway annual meeting was Charlie Munger's Valeant comments, but .

Author:: Armie Margaret Lee
Publish date:: May 2, 2016 1:16 PM EDT

TheStreet's Jim Cramer said one of the most important takeaways from the Berkshire Hathaway (BRK.A) - Get Report annual meeting over the weekend was the comment made by Berkshire vice chairman Charlie Munger on Valeant Pharmaceuticals (VRX) .

On Saturday, Munger said that "Valeant, of course was a sewer," according to media reports.

"There is no real takeaway other than to sell the stock," Cramer said Monday. Valeant shares were trading at $32.23 midday Monday, down 3.4%.

Meanwhile, Cramer found Warren Buffett's comment Amazon.com (AMZN) - Get Report to be a head-scratcher due to his position in Wal-Mart (WMT) - Get Report .

"The most potent thing that I thought he said was that, 'Amazon, you don't want to compete against them' and yet he has a big position in Wal-Mart,'" Cramer said.

Amazon last week reported a 28% jump in sales to $29.1 billion in the first quarter, compared to a forecast of $27.99 billion. Earnings per share were $1.07, greatly exceeding Wall Street's expectations of 58 cents per share. Wal-Mart is slated to report Q1 results on May 19.

In terms of Valeant, Munger's comments ame after the pharmaceutical company made its delayed 10-K filing on Friday, April 29.

Valeant said Friday that the default under its senior note indentures arising from the failure to file its form 10-K in a timely manner was "cured" and the company "remains in full compliance with its credit agreement."

The report, however, also revealed additional information about a variety of investigations, including probes launched by the Southern District of New York, the State of North Carolina Department of Justice, Securities and Exchange Commission and a number of congressional panels including the U.S. House Committee on Oversight and Government Reform.

Also, on April 29, Valeant announced the nominees for election to its board at the annual meeting slated for June 14. Valeant on April 25 appointed former Perrigo Co. chairman and CEO Joseph Papa as its new chief executive and chairman.

On Monday, Valeant board member Bill Ackman, the founder and CEO of Pershing Square Capital Management, appeared on CNBC's Fast Money Halftime Report.