That was the case when Cramer told investors to sell Walgreen (WAG) last year, after the company got into a tiff with Express Scripts (ESRX) and started making a slew of acquisitions. After falling from $40 to the high $20s, Cramer advised selling Walgreen, a price that later proved to be the bottom; the stock nearly doubled from those levels.

The former Shaw Group was another Cramer pan after the nuclear disaster in Japan. Cramer figured that Shaw, which built nuclear plants, would surely falter. While shares did sink 10% from his sell recommendation, the company was acquired by Chicago Bridge & Iron (CBI) for a 72% premium.

What's the lesson from these examples? That well-run companies with terrific CEOs deserve the benefit of the doubt and skepticism doesn't pay, Cramer concluded.

Am I Diversified?

In the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.

The first portfolio included Celgene (CELG), 3M (MMM), (CRM), JPMorgan Chase (JPM) and Valero (VLO).

Cramer said this portfolio was picture perfect.

The second portfolio's top holdings included Hewlett-Packard (HPQ), American Capital Agency (AGNC), Johnson & Johnson (JNJ), Bank of America (BAC) and Facebook (FB).

Cramer said this portfolio can't have American Capital and Bank of America and advised selling American Capital in favor of an industrial like Honeywell.

The third portfolio had Verizon (VZ), AT&T (T), Exxon-Mobil (XOM), PDL BioPharma (PDL) and Altria (MO) as its top five stocks.

Cramer said this portfolio can't have both AT&T and Verizon and needs a stock like Clorox (CLX).

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

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

-- 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 BAC, HON, JNJ, JPM, KEY and USB.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 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, 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, 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 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, 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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