Mad Money w/ Jim Cramer 8/1/25

Market Calendar And Earnings Spotlight For The Week Ahead

Jim Kramer opens with a brisk rundown of corporate results and macro events that could move markets this week, from Berkshire Hathaway's shareholder report to earnings from Palantir, DuPont, Caterpillar, Disney, McDonald's, Eli Lilly and Apple. The commentary frames the week as a mix of growth-stock hangovers and steady, fundamental stories — companies that may surprise on results, those that could be reshaped by breakups, and a handful that will reveal whether secular trends are intact.

Which reports matter and why detailed company events can alter a portfolio

Quarterly results are more than headlines; they test management narratives and catalytic changes. Kramer highlights Palantir's AI-driven revenue momentum, DuPont's potential breakup value, and Caterpillar's steady rebuild under new leadership as examples that show how earnings reveal both short-term operational health and longer-term structural transformation. For consumer-facing names like Disney, McDonald's and Marriott, he points to recurring revenue drivers such as streaming, menu innovation and travel demand that can affect valuation in tangible ways.

Timeless Rules For Individual Investors

Kramer devotes the bulk of the show to what he calls investing commandments: concise, repeatable behaviors that protect capital and position portfolios for long-term success. These rules come from decades of trading and fund management and are presented as practical prescriptions, not theory.

Bulls Make Money; Bears Make Money; Pigs Get Slaughtered

That barnyard maxim is a memorable warning against unchecked greed. Kramer explains that the most dangerous time to hold everything is when winners have already run — the temptation to let gains ride can convert a great year into large losses. The antidote is disciplined profit-taking and regular re-evaluation of positions.

It’s Okay To Pay Taxes

Many investors avoid crystallizing gains because of capital gains taxes. Kramer argues that deferred taxes are a poor defense when paper profits can evaporate; converting unrealized gains into banked proceeds should be weighed in the context of risk management and the loss of future optionality.

Never Buy Or Sell All At Once

Staged purchases and sales reduce timing risk and improve cost basis. Kramer recommends incremental buys over days and using partial sells to lock in gains, framing staged trading as humility in action — recognition that even the best judgment is fallible.

Buy Damaged Stocks, Not Damaged Companies

Distinguish share-price dislocations driven by temporary sentiment from fundamental business deterioration. A careful checklist and pre-defined watchlist let investors act when beaten-up names present true bargains, while avoiding companies whose business models have shifted irreversibly.

Do The Homework And Stay Diversified

Owning individual stocks requires reading conference calls, analyst research, and primary company filings. When time is limited, low-cost index funds win. Diversification remains the single most effective way to control sector risk and survive episodes when a single theme or industry collapses.

Don’t Panic — And Don’t Defend Everything

Panic selling locks in losses; disciplined investors often do better by waiting for a rebound or using declines to buy the best names at lower prices. Simultaneously, Kramer stresses selective defense: preserve capital by cutting weaker holdings and concentrating resources on top-quality positions that merit protection.

Practical Portfolio Rules In Brief

• Perform weekly portfolio reviews to spot margin changes and avoid knee-jerk reactions.
• Use dividend reinvestment to compound returns unless you need income today.
• Rank holdings by priority: buy now, buy on weakness, and sell categories guide actions when volatility hits.
• Prefer staged entries and exits to blunt short-term volatility and upgrade cost basis.

How To Apply These Lessons To Real Stocks

When a vacation-resilient company reports strong metrics, or a cyclical name benefits from reshoring and infrastructure spending, the right rule set helps you act: take profits on outsized winners, add to high-conviction positions in stages, and avoid buying into hype without homework. Kramer repeatedly urges patience — many structural stories are rewarded over quarters, not days.

These principles are not theoretical: they are the distilled behaviors Kramer used through market bubbles and crashes, and they serve as a practical framework for individual investors balancing growth opportunities with downside protection. The core takeaway is simple: disciplined processes preserve capital, and preserved capital creates the optionality to benefit from future market opportunities.

In sum, focus on repeatable habits — take profits, pay the taxman when necessary, buy in tranches, research every holding, diversify across sectors, and resist panic. These rules are the scaffolding around which a resilient, long-term portfolio can be built and maintained.