NEW YORK ( TheStreet) -- Investing in stocks is about making money, or at least it should be. That's what Jim Cramer told his "Mad Money" TV show viewers Wednesday, as he reminded them that investing in a company is investing in the enterprise and not just in its CEO. Cramer was responding to the news that billionaire investor Warren Buffett was diagnosed with prostate cancer, along with the precarious dip in the shares of his company, Berkshire Hathaway ( BRKB). He said that for many investors, Berkshire is Buffett and vice versa, but that should not be the case. Berkshire has been the steward of many assets, said Cramer, and that won't change if Buffett were to leave. In fact, Cramer said there's a case to be made that Buffett's hands-off management style may be doing some of Berkshire's assets a disservice and would be better served under different eyes. Cramer said separating a company from its CEO can be difficult. At Facebook, which is hoping to become publicly traded soon, CEO Mark Zuckerberg recently made a $1 billion acquisition of photo-sharing app Instagram without consulting Facebook's board of directors. Does that make Cramer less-likely to want to get in on Facebook's IPO? That depends on one thing, he said, whether it will make money. Cramer said the ultimate goal of investing is always to make money. So if the Facebook IPO is priced to make shareholders money, Cramer wants in, if not, then he doesn't. As for Berkshire Hathaway, Cramer said that the company still has great assets, assets that will perform well with or without Buffett at the helm. Then there's the case of Chesapeake Energy ( CHK) and its CEO Aubrey McClendon. Back in 2008, McClendon used margin to buy up shares of Chesapeake, an ill-timed investment that cost the company big time. Now it was announced that McClendon again borrowed money, this time for an unrelated acquisition. Cramer questioned whether this move was in the best interest of Chesapeake shareholders. If Chesapeake were making money, he said frankly, then he wouldn't care. But since Chesapeake has been struggling, he's deeply concerned. If a company is making money, then the antics of its CEO don't really matter, Cramer concluded, but if a company isn't making money, then its CEO matters a whole lot more.
Executive DecisionIn the "Executive Decision" segment, Cramer once again welcomed Don Wood, president and CEO of Federal Realty Investment Trust ( FRT), a real estate investment trust that's returned 100%, including reinvested dividends, since Cramer first got behind the company in May 2009. Wood explained that while there are always challenges for retailers, he's never been more optimistic about the future. He said one of the keys to success in the real estate business is being diversified and being in the right places. He said that customers don't always want a commodity when they shop, sometimes they want service and an experience, which is what local retailers offer. Wood also said that Federal Realty has excellent visibility for growth over the next few years. He said that the company has $1 billion of capital committed to acquisitions and two new projects in Boston and outside of Washington, DC. Wood said the DC market, in particular, has been very strong for Federal Realty, as is California, where technology is making a comeback in a big way. Finally when asked about the company's dividend, Wood noted that Federal Realty has been paying a dividend for 44 years and he doesn't see anything in the future that would put the dividend in jeopardy. In the second "Executive Decision" segment, Cramer spoke with Scott Wine, CEO of Polaris Industries ( PII), makers of snowmobiles and off-road vehicles. Shares of Polaris are up 25% since Cramer last featured the discretionary products maker in January. Wine credited innovation for Polaris' success, saying that his company is now hitting the market with a wide range of products at many different price points. He said the company now employs more than 1,500 people. But Polaris is a lot more than just snowmobiles and off-road vehicles; the company also has a growing military component. Wines explained that in areas like Iraq and Afghanistan, it's better to avoid the hazards on main roads, which makes Polaris' vehicles the perfect choice for getting troops where they need to go.
Am I Diversified?Cramer spoke with callers and answered tweets @JimCramer to see if their portfolios have what it takes for today's markets. The first tweeter's portfolio included Hewlett Packard ( HPQ), Red Hat ( RHT), Starbucks ( SBUX), SBA Communications ( SBAC) and Cisco Systems ( CSCO). Cramer said that Cisco, Red Hat and HP are all tech. He advised selling Cisco in favor of Abbott Labs ( ABT) and Hewlett Packard in favor of Ensco ( ESV). The second caller's top holdings included Abbott Labs ( ABT), Kraft Foods ( KFT), Conoco-Phillips ( COP), Windstream ( WIN) and Mattel ( MAT). Cramer said this portfolio was properly diversified. The third caller had Devon Energy ( DVN), EOG Resources ( EOG), Las Vegas Sands ( LVS), SunTrust Bank ( STI) and Statoil ( STO) as their top five stocks. Cramer identified three-of-a-kind in the oil patch and advised selling Devon and Statoil and picking up Verizon ( VZ) and Abbott Labs ( ABT). The fourth caller's top stocks were Conoco-Phillips ( COP), El Paso ( EP), Procter & Gamble ( PG), UnitedHealth Solutions ( UNH) and Waste Management ( WM). Cramer once again identified too much oil in this portfolio and again advised adding some Verizon ( VZ) to replace El Paso.
No Huddle OffenseIn his "No Huddle Offense" segment, Cramer told viewers to cut IBM ( IBM) (a stock which he owns for his charitable trust
Lightning RoundIn the Lightning Round, Cramer was bullish on
American Water Works ( AWK),
Orbitz Worldwide ( OWW),
Ocwen Financial ( OCN),
Las Vegas Sands ( LVS),
Wynn Resorts ( WYNN),
Kulicke & Soffa Industries ( KLIC),
MeadWestvaco ( MWV),
Nordic American Tanker ( NAT),
Solar Capital ( SLRC)
and Annaly Capital ( NLY). Cramer was bearish on Frontline ( FRO)
and MIPS Technologies ( MIPS). --Written by Scott Rutt in Washington, D.C. To contact the writer of this article, click here: Scott Rutt. Follow TheStreet on Twitter and become a fan on Facebook. To submit a news tip, send an email to: email@example.com. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. Click