He had an obvious win on his hans and he punted and didnt take advantage of it. Nasdaq gained. 03 . Accountability at last . The money manager in question was warren buffett, and maybe the take away is that only the worlds greatest investor can afford to make a mistake. Everyone else must be too secure to do the same thing, because theyre all making them. It rapt at everything buffet said over the weekend. When he told us what hes looking at, what hes thinking, way he he is a done right and whats done wrong. He and his team, including the incredibly youthful 994yearol charlie mugger particularly the companies he plat flat out acquires wholesale. Before he go over buffets selfadmitted gaffs. This is a man who believes in america, who believes the future is brighter than the past, and he likes business es he can buy for less than best of breed companies. He can afford to take his time and get it right. Because the penalties for getting it wrong are very high. He values hard work and smart work. He knows how to identify those who do both. Most of all buffets joyful about the process, hes genuinely curious, but skeptical. Witness his upgrading of john stump, the former ceo of wells fargo, to not acting quickly enough about the misdeeds. Google, that truly had me on the edge of my seat. Geico and brook shire hathaway realized early on that it wanted to city on google. Remember, geico can run all the ads it wants with the geico or the gecco. But it doesnt target the most important audience, people looking for insurance right then and there. They can obviously influence you at a certain point. But most tv viewers on any given day arent in the market for a new Auto Insurance policy. Thats why buffet was so enamored of google. Because pretty much everyone doing a search for Auto Insurance is looking to buy some, which is why geico gets such a fabulous return on these online ads. Heres where buffets confidence really helps us out. He recognized that googles cost for taking that ad was almost nil. Yet buffet didnt pull the trigger. Im not sure he realized when he realized what a guy google stock was. But lets contrast that to ibm which he bought six years ago. Its now about 7 bucks below when he started buying. But more important, back then, google which subsequently became alphabet was trading at about 300. Now its 958. Of course buffet probably learned of google before that. But it wasnt clear who would dominate the space. You could have bought google even lower than the price i mentioned, because even six years ago. First we have to recognize a hum humbling thing. By the way, its interesting that he bought ibm stock, without much firsthand knowledge of the companys situation. Back when asked about watson, the Artificial Intelligence platform, its emblematic of the new ibm. Pointing out that its fast growth is coming off of a very small base. When you put buffets ibm pick alongside his failure to pull the trigger on google, you have to conclude that nobody in this business gets it right all the time. If even the oracle can make this kind of mistake, you can understand why im so adamant that you keep your retirement money in a low Cost Index Fund that mirrors the s p 500. Buffet said in his annual report that he preferred the vanguard low cost fund, i agree with it. Write that down, its s p 500, and he said vanguard fund. How about take away number two . Once you have your bedrock index fund investment, when you keep adding to that every year, and you have spare cash, why not put it towards some stocks you can find yourself. Its how buffet found apple, he saw teenagers loving their iphones. But as a unique Consumer Goods Company that sells for much less than any of the others, including those he knows so well. Remember, this is a man who really understands the stocks of cocacola, kraft hines a, and nobody seems to blanch at its ridiculously high price point. These are precisely the attributes that tim cook stressed in my interview with him last week. Its obvious that even apple appeared as a very cheap stock. Apple rallied 40 bucks to a high of 153 today. What else can we learn . If we keep our eyes open, we can always find Good Companies and if youre prepared, you can buy the right stocks at the right time. My daughters always on facebook, and my wife checks her facebook a couple times before he goes to bed. How about google, just like google, facebook has the low cost of goods sold, and i can argue that google itself, now that its spanning beyond just search into video, and its more than just merely a search play. Among many gettable stocks we see in our day to day lives, lets not forget about amazon. Im not saying you should build a portfolio of your favorite products. Al make you like coke. But coke is not as good as pepsico. Heres the bottom line, if you want to augment your index fund with a few stock picks of your own, i think thats a really responsible and frankly a thrilling way to try your hand at grows wealth, out of the orderary, even if the ordinary does pretty well itself. Caller thank you for all you do for us young investors. Want to get your thoughts on the future prospects for the Home Building industry, specifically Toll Brothers, im wondering if Rising Interest Rates will help toll. I still toll is still under valued by the way, peer house down in brooklyn is almost sold out. Thats an example that theyre urban. You know in princeton, what kind of Quality Homes they build, the Company Bought back a lot of stock, the Toll Brothers are magnifice magnificent. Well done, i would be a buyer of that, scott in new jersey. Caller what about shake shack. On a store by store basis its expensive. I think at 1. 3 billion its a reasonable valuation versus what it used to be. Thats the way to look at it. Mcdonalds is a better buy. How about bob in ohio. Bob . Caller jim, booyah from n canton, ohio. Jim, my question is on treehouse stock. Ths, on may 4, the stock fell 4 after reporting First Quarter sales and earnings below 20 . Although their next quarter is projected to be the lowest quarter of the year, they still project their share price to be over 3. I was thrown off by that quarter, i got to tell you bob. I went through the conference call. I think they kind of got blind sided. No, i cant tell you to buy that stock right now, that was not a good quarter and not a good call. And thats disappointing to me u after that First Quarter. I wish i could, i love those guys, but i cant. Stock business is not easy business, theres a lot of take away from the oracle. Including something you the home gamer can do, but only if youve got that indexed fund. The house doesnt always win, so it could be your turn, its a high stakes casino battle. Im looking at which stocks to hold and which ones to fold. We know the rents too dang high, but are stocks following suit in im revealing. And one lone leader in the s p 500. Find out if im recommending mule brands. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Rays always been different. Last year, he said he was going to dig a hole to china. At t is working with farmers to improve irrigation techniques. Remote moisture sensors use a Reliable Network to tell them when and where to water. So that farmers like ray can compete in big ways. China. Oh. He got there. Thats the power of and. When youre dealing with the peoples republic of china, every now and then youre going to get a nasty communist government induced selloff. Thats what happened to the mccal based casinos. All got hit as the Chinese Government announced plans for new security features to monitor cash withdrawals from atm machines. Mostly because theyre trying to crack down on Illegal Foreign Exchange scams that have been thriving in chinas gambling haven. This results in less people losing money at the slot machines. I got to believe this selloff is just another buying opportunity for the best run mccal based casino stocks. As i mentioned before, mccal is facing a very real turn around. Macal was growing. The problem was, much of this growth was already reflected in the stocks, which meant we needed to get more selective with the ones we own. The most a known ones are winn. Theres huge insider buying. I also told you to buy mgm if you wanted a Casino Company with more u. S. Exposure. And it looks like i was right, frankly, as soon as i recommended these stocks, mgm is up 10 . Still when it comes to the battle for macaln, these high rollers have been the best bet for the region. However it turns out the best bet for the whole casino space was mgm. So how are these Casino Companies doing right now . If you look at the data, the c macan turn around, that said the last three months have been down with total revenue being up 17 in february. 18. 1 in march, and 16. 3 in april. Lets first understand what happened to the company that was doing pretty well since last december. When it got hit with the last macau scare. The numbers came in much better than expected. Suddenly people were not worried about that dividends. Then we got the news from china. Its been roaring back, like lvs, who gave bullish commentary about the future and the stock sorry soared 7 in a single session. Then a couple of weeks ago, winn truly delivered a complete blowout quarter, earning 1. 24 per share. The stock popped 6 on the news, but again, pulling back today because of his atm restrictions. Mgm pulled back a lot less, because this story is more about the u. S. What the heck are we supposed to make about this story about the chinese cracking down on macaus cash machine. We heard that an extreme amount of money was being extracted from macaus atm. Hes poised to make whats being described as a major announce. We dont know what that announcement will be. So should we be concerned about all this . Is there enough to derail the incredible turn around thats been taking place with these macau based casinos . I dont want to overreact in either direction, but im actually not particularly concerned. If anything, i think this week could be a buying opportunity because we have seen this kind of story play out before. Back in december, the casino stocks plummeted after the south china post reported that the Chinese Government was set to slash the atm withdrawal limit in macau. Less access to cash means less revenues for the casinos. Over with in days, the actual rule emerged, and it turned out to be less restriction than we thought. The overall limit on daily withdrawals was untouched. You could still withdraw the same amount of money you just had to take more trips to the atm. If you bought wynn stock in that december scare, we would now be up 32 . Our recents experience with the Chinese Government cracking down on cash machines in macau, this could be another buying opportunity. It took a while for the casino stocks to recover from the december selloff. So youre not in a rush, but you should be focused on it. I think the win is on the macau play. The former selling for 21 times, the latter, 20 times. If you dont want to be totally at chinas mercy, you can buy mgm, thats at least 19 times earnings. You want to buy the stock whenever investors get nervous about the chinese restricting the cash machine. Youve got my blessing to do some buying, especially after its most recent quarter, after its remarkable up side surprise. Much more mad money, from home and garden to its nearly products, newell brand products. An under the Radar Company that could profit off of the strong environment. Stick with cramer. Think again. This is the new new york. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov im dr. Kelsey mcneely and some day you might be calling me an energy farmer. Energy lives here. Wheres jack . Hes on holiday. What do you need . I need the temperature for pipe five. Ask the new guy. The new guy . Jack trained him. Jacks guidance would be to maintain the temperature at negative 160 degrees celsius. That doesnt sound like jack. Actually, jack would say, hey mate, just cool it to minus 160 and were set. Good on ya. Oh yeah. Thats jack. Are stocks too high . That question certainly resonated through the Berkshire Hathaway meeting today. Warren gave you one way to look at stocks, the traditional measure versus bonds, he found bonds pal try. Even though the market may value a companys stock at what seems like a high price, that stock may still be cheap to a company that wants the whole business. Today we got not one but two examples that confirm the negotiation that stocks could be cheaper than we think. Sin claires billion dollar purchase and these deals were rumors, 6. 4 , and 8 respectively. But tribune stock had run from 29 to 49. More important, from the point of view of the overall market valuation, sinclaire stock jumped on the news, even though it pulled back and ended up slightly in the red. Why did they go up so much at least at first . Sinclaire took advantage of the recent decision to relax the concentration rules. This is a classic example of how Important Agency deregulation from the presidency on down. President trumps people simply dont fear increases in Tribune Media gives sinclaire tremendous reach and much greater scale. You can call it regulatory capture, or simply helping out its fellow travelers. But its great news for investors, tei think the better buy is nexstar, with a stock at 63 stock, and is down a little more than 1 year to date. I have have this stock could, why buy the potential acquirer . Thats interesting, because i think the potential targets could be overvalued because of all the chatter. How about coachs brilliant purchase of i think coach played this perfectly. At kates stock soared last month, but eventually just sold itself for 18. 50. Coach under the really brilliant Victor Louise has become a house of brands. Coach has a gigantic World Wide Network of stores, running these additional brands particularly in asia, has created a terrific diverversificatio diversification. You know what to me this is a wakeup call for both pvr corp. And vfc. In order to pay down debt, that gave them many additional calvin klein licenses. Now, its just possible that the flood gates will help. Keep in mind, pvh stock has been a good performer. But to sinclaire and coach, its just right for making acquisitions. So i have to ask whos next to fake the plunge . Jamey in new york. Caller i want to know if theres might be a strength behind comcast and as well as if its a buy, sell or hold. My travel trust has a position in comcast, why do i like it . They have tremendous subscriber growth. They made a deal with charter. But what matters is that this stock is very inexpensive on earnings could do really well under the president s tax plan, but has phenomenal growth, and has fee cash flow. Miguel in tennessee. Caller cramer. Been a fan of yours since 2008, so a big booyah from the volunteer state. Thank you, the vols rock, as we all know. Caller of course. Question, i have been reading article after article after article about these Sports Products these sportswear products going toward athl athleisure. Like under armour. It needs to go down, it needs to generate some serious growth to go higher. Im knneutral on it. Im not going to pound the table, im not going to tell you to sell it. Caller jim, booyah, thank you for taking my call. I wonder if you heard the news about the merger between att and timewarner. How do you think that will affect timewarners stock. Chaching, chaching, remember what happened with walgreens and rite ate . I said you had to sell, i have to always keep that on the front burner. Stocks could be cheaper than we think, thats what the stocks of sinclaire and coach showed us earlier today. More mad money, including my conversation with the ceo of Newell Brands, at a 12 move higher, is it time for you to get to know the stock as well . Great news, i did your home work for you. And it could make you some money. Plus an all new rapid fire edition of the lightning round. So stick with cramer. Follow the path of more than 50 different brands and they all lead to one stop, Newell Brands has a portfolio with scores of familiar names. But can this collection of icons make the stock greater than the sum of its parts . Every now and then a company that you absolutely adore will surprise you by doing even better than you imagine. Thats how i feel about Newell Brands, created by the newellrubbermaid. Mr. Coffee, oster. I have been a big fan of this deal ever since it was announced last year, which is why we own Newell Brands in my travel trust. But even i didnt expect the company to blow away numbers like it did this morning. Newell just reported a 5 increase, big boost in the di tend. And thats why i rocked it off at 5. 05. I wanted to talk to mike polk, ceo of Newell Brands. How did you do it, you outran retail, you did much better than the category, you simply just hit the ball out of the park. How did you do that . Im just proud of the team, in the midst of a tremendous amount of changes, the team did great work. The competitive legvel of growt while having all these synergies to margin. So we have got the whole mix working for us at the moment. Of course youve got Yankee Candle. Thats her mothers day present. Talk about slime, now slime is something that if you have kids, you