Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
This program last aired on Aug. 27, 2014.
NEW YORK (TheStreet) -- Always remember, don't let your skepticism get the best of you, Jim Cramer told his Mad Money viewers in a special episode dedicated to getting rich carefully by avoiding some of Cramer's biggest mistakes.
Being too much of a naysayer can hurt you, Cramer continued, especially with companies that have fabulous CEOs. That was certainly the case with Walgreen (WAG) back in 2012, Cramer recalled. He said Walgreen, once a Cramer fave, seemed to lose its way, causing its share price to plummet from $40 to the low $30s by June of that year. The company had picked a fight with pharmacy benefit manager Express Scripts (ESRX) , he explained, and customers were fleeing to rival chains in droves.
Must Read: 10 Stocks Carl Icahn Loves in 2014
Then Walgreen got even worse, buying the European drugstore chain Alliance Boots, sending shares down another quick 6%.
Cramer said he thought for sure Walgreen's CEO, Greg Wasson, had bitten off more than he could chew and recommended selling the stock. The only problem was that Cramer told viewers to sell at the exact bottom for Walgreen's shares. The stock has been heading higher ever since.
Cramer said he knew Wasson was a great CEO and should've given him the benefit of the doubt. He let skepticism get the best of him, an error that individuals make all the time. Not every bad thing is the end of the world, Cramer concluded. Currently, Walgreen is a holding in Cramer's charitable trust, Action Alerts PLUS.
Trust Your Homework
Cramer's next lesson for investors: Never sell a stock just because it's going down. If you've done the homework and nothing's changed, trust your homework and have conviction.
Must Read: 7 Stocks Warren Buffett Is Selling in 2014