Investors Need to Look at More Than the Stock Price, Says Jim Cramer

When it comes to companies such as Facebook, Papa Johns and Alphabet, it's time to look past the balance sheets and at the reputation of the company.
Author:
Publish date:

Companies are more than just stocks. 

"Look, there's stock and then there's humanity," Jim Cramer said live on the floor of the New York Stock Exchange. 

In light of John Schnatter, founder of Papa John's (PZZA) - Get Report stepping down from the board, Cramer took a look at other companies and why investors should be paying attention to other aspects, not just the balance sheet. 

Cramer explained that he's looking at the ways that different companies are handling various topics--from comments from top executives to harassment charges, and that investors should be paying attention to those headlines as well. 

"I'm gonna direct [my questions], the same way that I would direct sustainability, and I'm gonna ask about what they're doing to save the ocean, what they're doing to save the earth. What are they doing to stop pollution? What are they doing to empower younger people?" Cramer said. "What are they doing to empower the people who are poor? What are they doing to empower the people who go to not great schools? And, this is my focus besides ... Obviously, I'm still picking stocks. But, I think that what's happened, and it dovetails nicely with what I do. You can't get the smart people unless you're thinking about these. And if you can't get the smart people to seed the corn then you're gonna miss some number [three, four, five years out]."

Need some examples? Here are some of the companies that Cramer listed.

"Facebook (FB) - Get Report is going to have a very hard time getting the right people," Cramer said. 

But a company like Mastercard (MA) - Get Report , will get the right people because "they're doing the right thing."

Google parent, Alphabet (GOOGL) - Get Report , is  "struggling" to do the right thing. 

Salesforce (CRM) - Get Report "is doing the right thing" according to Cramer. 

Another company that Cramer gave his stamp of approval to? Morgan Stanley (MS) - Get Report

Related. Plenty of Salesforce Virtues, Here's 3 Trade Ideas

Watch Jim Cramer's Daily NYSE Show and Replays Below