Rule No. 20: Giving Up on Value Is a Sin - TheStreet

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Real Money: Sane Investing in an Insane World

, is available in selected bookstores now. As a special bonus to

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readers, we will be running Cramer's "Twenty-Five Rules of Investing." For more about the new book and to order it, click here. Today, we present Cramer's twentieth rule of investing. Read more about his rules:

    Pigs Get Slaughtered It's OK to Pay the Taxes Don't Buy All at Once Buy Damaged Stocks Diversify to Control Risk Do Your Homework Don't Panic Buy Best-of-Breed Defend Some Stocks Don't Bet on Bad Stocks Don't Own Too Many Names Cash Is for Winners No Woulda, Shoulda, Couldas Expect Corrections Watch Bonds Don't Subsidize Losers Check Hope at the Door Be Flexible Quit When Execs Do

Patience is a virtue -- giving up on value is a sin.

I see so many people throwing in the towel on companies that have real assets and real worth just because they aren't working now, and it angers me. The other day I interviewed the CEO of

Superior Industries

(SUP) - Get Report

, a wheelmaker for auto companies. Its stock is at a 52-week low. It has a big short position. It's lumped in with companies like

General Motors

(GM) - Get Report

and

Delphi

(DPH)

.

And I ask myself, "Why sell that one? It's already down so much, it has a clean balance sheet, it can make acquisitions, buy back shares, do so many things." But people don't want to wait until the cycle turns to get the profit that most certainly will come to those who wait for Superior. That's because it is

cheap

and

good

. It's cheap because it sells at book value; it's good because it has plenty of business.

Or take the situation I see developing in banks like

J.P. Morgan

(JPM) - Get Report

and

PNC

(PNC) - Get Report

. If the

Fed

doesn't tighten forever -- which it won't -- at a certain point, the value in these banks will be realized. Great brands, great branches.

But no one cares.

At any given moment, I like to have a portfolio of what's working now and what will work in the future. I think that after seven tightenings, you have to start thinking that the Fed will have an impact and when it does, the Fed will be through. When the Fed is through, you are going to want to own the financials. I think they are a lot easier to own now than

Phelps Dodge

(PD) - Get Report

or

U.S. Steel

(X) - Get Report

are.

It takes patience. Most don't have it. If you don't, frankly, I think you should let someone who has patience run your money. You don't deserve to.

And by the way, stocks like

EMC

(EMC)

and

Cisco

(CSCO) - Get Report

and

Sun Micro

(SUNW) - Get Report

don't qualify. They are expensive, not cheap. They don't represent value ... at these prices.

At the time of publication, Cramer was long J.P. Morgan and PNC Financial.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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