Jim Cramer says that even though tech stocks are "so great," you shouldn't have more than 20% of your portfolio in them.

TheStreet's founder said during an exclusive conference call with members of his Action Alerts PLUS club for investors that he certainly understands how valuable tech stocks can be. After all, he's the guy who coined the term "FANG" to represent Facebook (FB) , Amazon (AMZN) , Netflix (NFLX) and Alphabet/Google (GOOG) , (GOOGL) .

But Cramer warned that investors who put more than 20% of their portfolios into tech are "too hostage to group that could go down big on one big miss. How did people feel [Wednesday] morning when Netflix was down $7?"

Want to join in on Jim's monthly conference calls? Click here for a free 14-day trial subscription to Action Alerts PLUS and hear all of the latest call, plus get e-mails before Jim makes any trade and enjoy lots of other exclusive material.

More of What's Trending on TheStreet:

Watch More with TheStreet:

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long FB and GOOGL.

More from Investing

Make This Dividend Aristocrat a Staple of Your Portfolio

Make This Dividend Aristocrat a Staple of Your Portfolio

It's Harvest Season for Tax Losses

It's Harvest Season for Tax Losses

Your Worst Enemy In a Bear Market Is Yourself

Your Worst Enemy In a Bear Market Is Yourself

Chart of the Day: The Cloud Kings Lost Their Crown in the Fourth Quarter

Chart of the Day: The Cloud Kings Lost Their Crown in the Fourth Quarter

It Was a Dismal Finish to a Dismal Week

It Was a Dismal Finish to a Dismal Week