Cramer’s Mad Cash Recap: Fb, Merck, Nvidia

There’s a lot more to investing than just owning index funds, Jim Cramer told Mad Money viewers on Tuesday. Anyone who tells you stock picking is a fool’s game is just plain wrong, Cramer said. Finding successful investments is a lot easier than you think.

Index funds certainly have a place in your portfolio. If you’re just starting out, your first $ 10,000 should be in an index fund. And if you don’t have the time or inclination to do little homework, then index funds are just the thing for you. But for everyone else, there are better ways to make money.

The problem with owning everything is that not every stock is worth owning, Cramer explained. Growing up, dividend paying stocks like Merck (MRK) – Get the report made millions for individual investors who reinvested those dividends year after year. But during that time there were also many soaring stocks that crashed and burned. Knowing the difference between these two types of stocks is the difference between gambling and investing.

What is it worth owning today? Merck is still there and still pays great dividends. In fact, there are dozen of high-paying dividend stocks in the S&P 500. There are also momentum stocks, as known to be preferred by ARK Invest’s Cathie Wood. As Cramer outlined last night, there are quality IPOs and SPACs too if you do your homework.

Over the years, Cramer identified stocks like Facebook (FB) – Get the report, Paychex (PAYX) – Get the report, Shopify (BUSINESS) – Get the report and Nvidia (NVDA) – Get the report on Mad Money. All of these stocks have seen tremendous gains and all of them are hiding in plain sight. With a little time and research, investors can find such winners.

Cramer and the AAP team are reviewing everything from revenue to politics to the Federal Reserve. Find out what they are saying to their investment club members and join the conversation. part a free trial subscription to Action Alerts PLUS.

Board decision: Shopify

In his first “Executive Decision” segment, Cramer spoke to Harley Finklestein, President of Shopify (BUSINESS) – Get the report, the e-commerce platform that helps thousands of small businesses sell their goods online. Shopify’s stocks are up 42% over the past three months.

Finklestein said the new product and feature announcements on Tuesday were about giving merchants more flexibility, scalability and performance. Whether they need to sell just a few items or hundreds of thousands of items in minutes, the Shopify platform now has the tools merchants need.

Shopify is also improving its checkout experience, which was used more than 450 million times last year. Finklestein said the new customization features allow more payment options than ever before.

The Shopify ecosystem continues to grow. Finklestein found that partners generated more than $ 12 billion in their platform over the past year. Shopify is a partnership with Facebook, Google (GoogL) – Get the report, TikTok, Pinterest (PINS) – Get the report.

Cramer said Shopify is turning hopes and dreams into real money for thousands of small businesses.

On Real money, Cramer shares information about the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.

Browse Jim Cramer’s “Mad Money” trading recommendations with our exclusive “Mad Money” stock screener.

To watch reruns of Cramer’s video segments, visit Mad Money page on CNBC.

To sign up for Jim Cramer’s free Booyah! Newsletter with all of his latest articles and videos Please click here.

At the time of publication, Cramer’s Action Alerts PLUS held a position with FB, NVDA, and Demokratie.