Cramer's 'Mad Money' Recap: Investing for the Future

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NEW YORK ( TheStreet) -- Stocks are all about the future, not the present, Jim Cramer reminded his "Mad Money" TV show viewers Thursday as he hosted the show live from the business school at Villanova University in Philadelphia.

Cramer said that while there are many things to worry about in today's market, young investors should be thinking about the markets of 2020.

Cramer's "buy and homework" portfolio for 2020 needs to focus on long-term macro trends such as curing diseases, something at which U.S. biotech stocks thrive. He suggested picking up Gilead Sciences ( GILD) or Celgene ( CELG) to fill the first slot in the portfolio.

Cramer said social media and cloud computing will likely be strong in 2020, which is why owning Google ( GOOG) or Facebook ( FB) should be next on the list.

There's also America's race towards energy independence, something that Cummins ( CMI) or Enbridge ( ENB) can do for investor portfolios along with Noble Energy ( NBL) or EOG Resources ( EOG).

America is also great at manufacturing, said Cramer, which is why the 2020 portfolio also should have Caterpillar ( CAT), Boeing ( BA) or Honeywell ( HON). He also advised investors have a little gold in their portfolios for diversification.

Finally, Cramer said his 2020 portfolio should include something international, such as the iShares MSCI Mexico ( EWW) ETF. For speculation, he suggested US Airways ( LCC) on the heels of its merger. Last but not least, something local such as mortgage insurer Radian ( RDN).

Cramer said younger investors shouldn't wait, because even a few dollars a month into a portfolio like this one will have bountiful yields in the future.

Xbox Marks the Spot

Even the best analysts sometimes get it wrong, Cramer told his audience as he dove into the most recent earnings of Microsoft ( MSFT), a stock that received no fewer than three downgrades right before it reported earnings on April 11, downgrades that proved to be the bottom for the stock now up 11% from those levels.

Cramer said Microsoft was left for dead by the analysts, who had tied the company solely to the decline in PC sales, forgetting about its many other businesses. Nearly all of the negatives had already been baked into the stock, Cramer continued, but none of the positives.

So when Microsoft finally reported, PC-related sales were indeed sluggish, but earnings held up thanks to a growing cloud and services business, along with entertainment and, of course, the Xbox.

There was only one analyst who bucked the trend and got it right, Cramer noted, but all of the others followed the trend in the wrong direction.

Shares may already be up 11% from the bottom, Cramer said, but they still trade at just 10 times earning with a 3% yield, which is far too cheap for a stock with so many irons in the fire. He said shares will continue to rise and one by one the many analysts are forced to change their tune.

Executive Decision: Sally Smith

In the "Executive Decision" segment, Cramer welcomed Sally Smith, CEO of Buffalo Wild Wings ( BWLD), a stock that's up 79% since Cramer first recommended it in February 2011.

Smith wasted no time in saying that even though Wild Wings just crossed over the 900-restaurant threshold, the company still believes there's room in the U.S. and Canada for over 1,800 locations, and that's not including international opportunities. She said many countries across the globe are clamoring for U.S. brands and she's very excited about the opportunities for growth.

When asked whether the price of chicken wings is more important to the company than the sports schedules, Smith said sports will always be the biggest driver for the company. She said Wild Wings has dealt with wing prices since its inception and handled the record low prices in 2011 and the subsequent highs in 2012, all without a hitch. But when there are great sports rivalries on the schedule, that's what brings in customers.

Smith was also upbeat about Buffalo Wild Wings becoming the official hangout for all NCAA sports as well as the company's radio advertising campaigns, both of which are helping drive new business for its restaurants.

Finally, asked whether McDonald's ( MCD) tests of bone-in chicken products is a threat, Smith said it's an endorsement of just how popular chicken wings have become. She noted that people visit McDonald's for different reasons than Wild Wings, which is why she's not worried.

Cramer said there's a reason why Buffalo Wild Wings is on the 52-week high list and investors should take notice.

Lightning Round

In the Lightning Round, Cramer was bullish on Boeing ( BA), Walt Disney ( DIS), Toll Brothers ( TOL), Ford Motor ( F) and Chipotle Mexican Grill ( CMG).

Cramer was bearish on Exxon Mobil ( XOM), Lions Gate Entertainment ( LGF), Beazer Homes USA Inc ( BZH), 3D Systems ( DDD), Nordic American Tanker ( NAT) and Smith Wesson ( SWHC).

Higher Education

In his "Higher Education" segment, Cramer listened to pitches from Villanova students and offered up his thoughts on their stocks.

Cramer said he liked the first student's pick of Schlumberger ( SLB), saying oil production in the Gulf of Mexico is on the mend. He also agreed with the second pick of eBay ( EBAY), especially the company's Paypal unit.

When pitched DR Horton ( DHI), Cramer said he thinks it's a great story and would buy on any weakness. He had short-term concerns about GNC ( GNC) but felt the stock in the longer term was a good idea.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

-- Written by Scott Rutt in Washington, D.C.

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS had a position in EWW and FB.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

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