NEW YORK ( TheStreet) -- Blindly following celebrity investors based on what their quarterly filings say is a recipe for disaster, Jim Cramer told his "Mad Money" audience on Tuesday. Cramer explained that the quarterly filings detail the buying and selling patterns of the big-time fund managers and celebrity investors like Warren Buffett. But Cramer said that doesn't mean it's a good strategy to mindlessly follow what these reports say. First off, these reports show what investors have bought in the past. There's no way to know whether they still like those companies at today's prices. Furthermore, these larger investors surely aren't going to tell you before they sell their stocks, leaving you vulnerable. Plus, Cramer said that funds and those like Buffett buy and sell for all sorts of different reasons, most of which have no indication on whether a stock is good or bad. But Cramer said the primary reason not to follow the big boys, they're often dead wrong. Cramer said that activist investors have showed interest in companies like Clorox ( CLX) and Pepsico ( PEP), but those stocks have not been particularly great performers. Neither has Buffett's stake in Bank of America ( BAC), which by the way included preferred shares, not the common shares that normal people can buy. Cramer said its far better to watch for insider buying, executives buying shares of their own company. Executives are not allowed to flip their own shares, meaning that if they're buying, then they're in it for the long haul. "Don't rely on someone else's homework," Cramer concluded, only you should control the investments that you make.
Beneath the SurfaceContinuing his "Stock Supermarket" series, Cramer went shopping for telco companies, comparing the stocks of AT&T ( T), a stock which he owns for his charitable trust,
Beer WarsCramer went head to head with colleague Ed Ponsi over the charts of the beer stocks, mainly Molson Coors Brewing ( TAP - Get Report), a stock near its 52-week low, Boston Beer ( SAM - Get Report), a stock near its 52-week high, Anheuser-Busch Inbev ( BUD), a stock stuck right in the middle. According to Ponsi, the chart of Molson is problematic, with the stock stuck in a downward channel of lower highs and lower lows. Additionally, the stock is selling off on high volume, signaling that any rally is lying, and the stock is stuck under its 200-day moving average. Molson's relative strength indicator, RSI, indicates the stock has further to fall. The chart of Boston Beer, however, Ponsi said is promising. After gapping higher on strong earnings, Ponsi said the stock is near a multi-year high. However the RSI shows that it may have run too far, too fast and is due for a pullback. Ponsi suggested buying on any weakness, not here. Finally, there was Anheuser Busch, a stock in the sweet spot. Anheuser delivered a three-month high on Friday, but isn't hitting any resistance until $64 a share. The stock's RSI is also neutral, signaling that there isn't much in its way to get there. Turning to the fundamentals, Cramer said he agreed with Ponsi. He said the beer wars have taken their toll on Molson and Boston Beer is just too pricey after it's big move higher. That leaves Anheuser, which is focused on its better beer brands and has terrific Latin American exposure. Cramer said that Anseuser deserves to trade at a premium.