Deep Dive
Shownotes Transcript
As America's leading business lender, Bank of America is on your corner and in your corner. With $215 billion in business loans and over 3,700 business specialists across the nation, we help businesses thrive so communities prosper. What would you like the power to do? Learn more at bankofamerica.com slash localbusiness. Bank of America, official bank of FIFA Club World Cup 2025. Copyright 2025 Bank of America Corporation. All rights reserved.
This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information-packed daily market preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com slash market update podcast or find Schwab Market Update wherever you get your podcasts.
- Yep. - Talk to that camera the whole time. Lights are gonna come up, so if you're a little dark when you walk through, don't worry about it. - All right. - Good luck, Jeff. - Thank you. Mike, we're about to rock the world. - It's incredible. They know nothing, they just talk. Man money makes big money, money, money. - You're about to watch a show that no one's ever seen before. One where I put my skills to work for you.
I am going to be your coach. This show, every show, I'm going to give you some money-making ideas. And, best of all, I'm going to tell it in a way that you have never, ever heard before. Hey, I'm Kramer. Welcome to a special 20-year anniversary episode of Mad Money. Welcome to Kramerica. Other people might be like, friends, I'm just trying to make you a little money. My job is not just to entertain, but to educate, to teach you.
So call me at 1-800-743-CNBC. Tweet me at Jim Kramer. All right, look, lately, we can't go a day without hearing some widespread misperceptions about stock ownership. I got to tell you, I think it's infuriating.
Here we are celebrating the 20th anniversary of Mad Money, dedicated to the proposition that you can potentially make lots of money by picking individual stocks. Yet I keep hearing that most Americans don't care about the stock market and its direction means nothing. I have to tell you, I think that is completely absurd.
So on the day when the Dow gained 300 points, S&P climbed 0.58%, NASDAQ advanced 0.55%. Thank you for a nice day for our 20th. Let's talk about stock ownership, because it's the whole reason anyone watches our show. And it generally matters not just to the rich,
tens of millions of regular people, home gamers, and never let any politician tell you otherwise. In this morning's New York Times, there was this article about people who voted for Trump and how they felt now that the market's well off its highs. I've listened to this guy, Daniel, event manager. He said he regretted his decision to vote for Trump because, quote, my 401k keeps dropping. That's bad. Some people don't want to pretend it's bad because a large portion of this country does not have stocks. Most of MAGA doesn't have stocks. They don't care, end quote.
Look, I get where Daniel's coming from, but he's wrong about who owns stock. More than 60 percent of Americans have some exposure to the market, either directly or indirectly. Seventy million people have an active 401k. Millions more have retired with them. Sixty million people have IRAs. Only 156 million people voted in November. I mean, we're talking half the electorate here. So here's where I stand.
When we started this show 20 years ago, we took an odd stance for anyone in this business. First, we were going to try to augment your paycheck. Now, I've been doing it for 25 years before I started the show, and it worked every day, including the year of the crash in 1987 and the dot-com bust in 2000. But second, I knew that you needed a champion. You were being taken for granted. Thank you.
So many brokerage houses just didn't seem to care. They didn't think individual investors were worth catering to. For example, my maiden named wife had just had her account handed from a real exec to a machine and a clerk. Why? She wasn't big enough. That's called indignity. She had worked hard selling real estate and had stung at the $100,000 that she had saved up over many, many years. Just wasn't enough to warrant real help from a brokerage firm. I fight for people like her.
The cab driver who stopped me last evening, hey, money man, who thanked me for making money for the first time ever, I fight for him. The kid outside Rock Center yesterday wanted to picture with me because I got him interested by teaching him how the stock market worked. I fight for him. The famous actor last week who apologetically asked me for a selfie because his dad never misses the show and he's ahead of the pros with his picks. I fight for him, too.
Oh, we're some strange country. We have all these amazing companies that do so many terrific things with stocks that can potentially make you fortunate. Yet neither political party wants to take credit for them. Sure, Trump invites them to the White House, but to what avail? To put big tariffs on their goods? Maybe that's more pro-business than, say, Biden, who shuns CEOs and often bragged about how he owned no stocks back when he was a senator. Bragged about it. But it amazes me that neither party wants to stand up for you, the investor.
The financials create all of these products, the double and triple leverage ETFs, the zero days to expiry options, all junked in order to make fees while fleecing you with no-win securities. I watched my friend Brian Sullivan interview Commerce Secretary Lutnick today while in the background, Taiwan sent me he was building the largest foreign investment project in American history.
That project was started by Taiwan Semi five years ago with Apple as its largest customer. The Chips and Science Act under Biden got this plant rolling, and Taiwan Semi's commitment has grown much, much larger under President Trump. NVIDIA makes chips there, too. Terrific story. But there's a missing thread. These companies are owned by shareholders, like the shareholders who voted for Trump and the shareholders who voted for Harris and the shareholders who voted for Biden before that. These companies want to do what's right by you.
The shareholder. But they can't tell what's right if they don't have the clarity of the rules of the road. They don't want to be told to build their factories in Mexico only to be then told that they're being tariffed for doing so a few years later. They don't want to help strengthen relations between U.S. and China by building cell phones in the PRC only to find out that they're aiding and abetting the enemy. And now they have to crush their own shareholder owners.
They don't want to be told to create dumbed-down versions of their chips for China and then be told that they can't even do that, forcing them to take a $5.5 billion charge for something that was supposed to be okay. That's Nvidia. Listen, shareholders are a constituency. We should be considered. It's not just arrogant rich people who own stocks. In fact, the mega-rich love to come on the air and tell you the stock market is too dangerous.
Now, look, stocks are ridiculously tax advantaged. More than just rich people want that. In a world where probably no more than 10 percent of this country can retire on their paycheck savings, stocks represent a different kind of Social Security, a one sided pact where people try to save and the government dismisses them. Oh, and I don't for one minute believe that all the CEOs who come on the show are necessarily looking out for you. Some aren't.
We don't like them. We have a zest to expose. Now, we don't have subpoena power, but we do have embarrassment power. And we use that for all it's worth. You know what we do it for? We do it for you.
It's the Mad Money Manifesto. The bottom line, we fight for you and we champion you. And we're grateful for every minute you have us on. We thank you for our 20 years. Without you, we'd be off the air 19 years ago. With you, we do our best to help you, to entertain you, to teach you, and yes, to stick up for you in a country where our leaders and many of our people deny that you even exist. Let's speak to Trey in Texas. Trey.
Jim, congratulations to you and your awesome team, and thank you for giving us retail investors a seat at the table for 20 years. Well, thank you, Trey. You're terrific to talk to. I'm glad you called in. How can I help? Well, Jim, I've been modeling for Abercrombie & Fitch for a few years now, and I've got to tell you, several of the data points I'm seeing in my model suggest ANF may be seriously undervalued here. What are your thoughts?
You know what? I've got to see what they look like in a tariffed world, Trey, because I don't know exactly how much of their stuff is going to have to go up in price. The stock is reflecting a lot of that. But you're right. It's six times earnings. But you and I both know six times earnings means usually that the earnings estimates are too high. But it's 65 bucks, $3.3 billion company. I think you can pick up a little. Buy, buy, buy. But then wait. Let's go to Dave in Illinois. Dave. Dave.
Dr. Kramer, my good mad friend, now celebrating 20 years of mad money with Jim Kramer. How are you feeling today, Mr. Energizer Bunny? Dave, I got to tell you, I'm nervous. I'm tingling. I got a lot of people here. They're camoing me. And I'm feeling darn, darn worried that I'm letting them down.
I hear you ringing the opening bell at the New York Stock Exchange with Regina, Heather, Cliff and Emma, to name a few. What a thrill. Well, you know, it was the real deal. And we've been tingling about it all day. And I'm so grateful for the network. And I'm grateful for people like you, Dave, who just made our show great. How can I help you today?
Let's get to work. Roughly 45% so far in the year, this $20 billion market cap company offers a range of products and services to...
...identities. They recorded earnings beats in each of the last three quarters. 44 analysts covered this stock. 22 are buyers strung by recommendations. As the newest member of the S&P 400 mid-caps, I'm asking you today about Okta.
I think Okta is terrific. It's one of the greatest companies. I'll tell you, anybody who works there has a great time. And they have done remarkable things. And Tom McKinnon is terrific. And so is cybersecurity, anti-stops. This one is a winner. I'm going to give you two for Dave because you're so terrific. CrowdStrike and Palo Alto Networks. They're all terrific.
And thank you for the calls. Thank you for all the callers all these years. Thank you so much. All right, our Mad Money Manifesto has been the same for 20 years. We champion you. We fight for you. And we stick up for you. And stick around. At 7 o'clock tonight at the end of the show, it's going to be a walk down memory lane, a documentary about Mad Money, or Mad Money Tonight, from oil rings to facts.
We spent the past two decades bringing Craymerica to company sites across the country. Tonight, I'm checking in with one of those hosts' new core actors, Reese Report. Then, what stocks have stood the test of time since Mad Money first aired? I'm reviewing the top 10 winners. And later, Honeywell reported a top and bottom line beat this morning. I've got the club holding's top brass to learn more. So stay with Honeywell.
Don't miss a second of Mad Money. Follow at Jim Kramer on X. Have a question? Tweet Kramer. Hashtag Mad Mentions. Send Jim an email to madmoneyatcnbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com.
This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information-packed daily market preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com slash market update podcast or find Schwab Market Update wherever you get your podcasts.
How many discounts does USAA Auto Insurance offer? Too many to say here. Multi-vehicle discount, safe driver discount, new vehicle discount, storage discount, legacy... How many discounts will you stack up? Tap the banner or visit USAA.com slash auto discounts. Restrictions apply. Three distinct all-electric Cadillacs. Some drive them for the performance. Others drive them for the range. And some drive them because it's the only way to make an entrance.
Three different ways to turn every drive into an occasion. Whatever your reason, there's never been a better time to say, let's take the Cadillac. The all-electric Cadillac family of vehicles. Escalade IQ, Optic, and Lyric. Let me nail this one. I think he's enjoying this. Well, let's just put it away. That's what I want. Jim, it's all over the cafe. All right, all right.
My technical producer is a vegetarian. I thought I'd go some other place. Let's get him! So we'll go over the skid pad. I'll do some drifting. And then we'll do a burnout. You sure you don't want to drive? No, no, no. You're in control. I really appreciate that.
Say it while I'm going up. Yeah, exactly. One shot. Okay, ready? Hey, I'm Kramer. Hey, I'm Kramer. Hey, I'm Kramer. Welcome to Mad Money. Welcome.
Welcome to Mad Money! Welcome to Mad Money! Welcome to Cray-Murica! Welcome to Cray-Murica! Hello from the city of brotherly love, 140 miles off the coast of Louisiana. Welcome to Dreamforce Conference in San Francisco. I'm on a boat! Welcome to Dearborn, Michigan!
We're on the Mississippi River in front of New Core Steel, Louisiana. Mad money is in the heart of steel country. Mad money is boots on the ground in the badlands. This is what we'll do. Find good ideas to invest in America. Who says we don't make anything anymore?
That was a look at all the places this show has visited on the road over the last 20 years. We've got new Mad Money from Michigan car factories, offshore oil rigs, and even a direct production facility in Louisiana that belonged to our next guest, Nucor. In fact, Steelmaker Nucor has joined Mad Money almost every quarter for our last 20 years.
Last, it's because I love the company so much. I'll just play them with the hand open. Last night, we got a solid quarter from Nucor. Even better match. We gave us some positive commentary about how they see demand shaping up in the months ahead. That doesn't jive with the conventional wisdom that claims we're headed for a nasty recession. You know, I don't believe that either. But don't take it from me. Let's check in with Leon Tappalian. He's the chairman, president, and CEO of Nucor. Mr. Tappalian, welcome back to Mad Money.
Hey, Jim, thanks for having me. And congratulations to you and your entire team. 20 years is an incredible milestone. And Nucor is glad to be a part of that over the last two decades. Well, Leon, we are thrilled to have you. And I am also thrilled that you I hope you understand we recognize you as much as you recognize us because you're such a great American company.
Last, I got to tell you, I was thrilled about your numbers. To me, it says trough, trough, trough. I see everything going your way after a pretty long downturn. Am I too optimistic?
No, look, we share in that enthusiasm and optimism. As you look at the quarter over quarter improvements, as we think about the projections, our backlogs are up 30 percent. We continue to see strong order entry and again, the end drivers for Nucor construction data centers, energy, OCTG and the markets that are yet still emerging, all are pointing for very strong signs as we head into the second quarter and the rest of the year.
You know, it also Jim, one of those data points, too, I'll just share with you as we think about new course, the largest structural fabricator in the United States.
When you think about the backlog at our new Corgi model facility today in our Berkeley beam mill, it is the largest backlog in the history of our company, like ever. And so as you think about that as a bellwether for the rest of the industry, that volume and those tons that sit in that backlog are through fabricators that don't pre-order. They don't buy ahead. They book only on the business that's contracted today. So that gives you a really good indication of how strong, like to the tune of hundreds of thousands of
at that sector of the economy alone. So again, like you, I'm optimistic about our future, but clearly for the rest of the year, we see improving signs coming through the economy. I also want to make another point. I think that if we didn't have a level playing field
If we had a playing field like you and I have seen periodically, we would not be talking about the great strength of a great American company. We would be talking about how you've been shut out of a lot of situations because other countries wanted those projects. Absolutely. Jim, look, the last four years we've seen our trading partners in countries take full advantage of the 232 or the TRQs that were put in place. It was long overdue for these to be refurbished, revamped and revised successfully.
And that's exactly what we're seeing today in the Trump administration. And again, but now with some nuance, not only pivoting where he needed to pivot, but also adding things like derivative products that, again, take a much more holistic view in helping the entire vibrancy of the steel industry and ensuring that we have a strong, resilient industry for national defense. You know, I heard someone on air say, you know what, Jim, you support this industry. It actually creates very few jobs. It's not very big. I
I've been schooled by you and your predecessors that when you look at something like what's going on in West Virginia, when you put up a steel mill, it doesn't end there. It is actually the force multiplier that our country is desperate for, actually.
Jim, let me tell you about the last five years alone. We've invested $20 billion to grow this company. In that same period of time, we've created 9,000 direct jobs and over 40,000 direct jobs. What do you think that does for the communities where we live and work? What do you think that's going to do in helping partner and transform counties like Mason County, West Virginia, or Lexington, North Carolina, Kingman, Arizona, and all the investments that Nucor is involved in across the entire U.S.?
So we are long term partners in the communities where we live and work. And that investment, man, we're all in. And that's going to be one of the strongest, safest, most profitable mills that Nucor has ever undertaken in West Virginia. So I couldn't be more optimistic. Nucor's best days are still in front of us. And I also want to point out that you can help us with pricing. It's not like you've jacked up pricing because of the tariffs. Pricing is pricing can go much higher than it is right now.
Oh, absolutely. Look, we're in a commodity business. It is the bottom line. And what what supply and demand is going to dictate. And so, yeah, you're absolutely right. The highs of 2021 and two. And we are way, way below that. So, well, there is strength in the economy. There's a lot of room left. And again, you've not seen the full earnings power and potential come through Nucor yet. And I think also it's important. We've seen these projects.
get pushed by the government, big subsidies, they make everything right, people talk about how they streamline everything. You actually pick communities that need you. You do it yourself. What you've done basically is say, you know what, we don't need your help. We have a level playing field, we'll put up factories all over the country. Isn't that what's happening in all these different little towns that you're in?
Oh, absolutely. And again, we're in 40 states across this incredible nation of ours. We have incredible long-term relationships. And again, we live and work in those communities. So we're going to school, church, communities, movie theaters. And so those investments, again, like those in Mason County and other parts of the U.S. where we're invested...
It's a long term relationship. And Nucor is a great community steward, environmental steward, sustainability. But again, we're giving back as our people are invested there, buying homes there. And again, that tax base and community. And you think about a four billion dollar sheet mill in Mason County that is going to transform that industry in that area. Well, look, I've got to tell you, it's a delight to have you on our 20th. It's fantastic.
Pure joy ever since I didn't know you about your company until 1985. But holy cow, what just a gem it is. That's Leon Tappali, and he's the chairman and president and CEO of Nucor. This stock is at the right price, believe me. Leon, thank you for coming on the show on this special day. Thanks so much, Jim. Congrats again. Man, money's back after the break.
Coming up, the Bulls have been running wild ever since Mad Money came on the air. But which stocks have performed better than the rest? Kramer is counting down the top 10 names over the last 20 years. Next.
This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information-packed daily market preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com slash market update podcast or find Schwab Market Update wherever you get your podcasts.
And now, a next-level moment from AT&T business. Say you've sent out a gigantic shipment of pillows, and they need to be there in time for International Sleep Day. You've got AT&T 5G, so you're fully confident. But the vendor isn't responding, and International Sleep Day is tomorrow. Luckily, AT&T 5G lets you deal with any issues with ease, so the pillows will get delivered and everyone can sleep soundly, especially you. AT&T 5G requires a compatible plan and device. Coverage not available everywhere. Learn more at att.com slash 5G network.
Last night, we started going through the 20 best performing stocks since Mad Money first aired way back in March of 2005. Because these winners really represent the core thesis of the show. That you can make a killing by picking the right stocks, doing the homework, and sticking with the great ones. We already covered number 23 all the way down to 11. And for this 20th anniversary show, I want to give you the top 10.
To start, we've got a trio of health care names. We'll actually begin with the 11th best performer because it fell one spot today behind RadNet, which we discussed last night. And that's Repligen, R-G-E-N. It's a company that makes high value bioprocessing products for life sciences and biopharma customers. This one's up 7,800 percent since we first went on air. Repligen is basically an arms dealer to the pharma and biotech space.
Making critical reagents using all sorts of innovative new treatments like monoclonal antibodies. This is a stock that rocketed hard during the pandemic, and it's now been more than cut in half.
from its highs in late 2021. Even here, it's pretty expensive, though, selling for about 80 times this year's earnings estimates. So I'm not quite ready to stick my neck out on this one. Even if I generally like the arms dealers, the life sciences industries, rearrange Repligen's ticker just a bit and you'll get the ninth best stock of the Mad Money era. Regeneron Pharma. That's up more than 9,400 percent. Now, this one's special to me because Regeneron's co-founder and CEO, Dr. Len Schleifer,
He was one of the first guests who ever came on the show back in April 12, 2005. The stock was trading at less than five bucks a share. Now it's at five hundred and sixty eight dollars. And that's after six point seven percent beating today.
Regeneron is arguably the most innovative biopharma companies I've seen in the last two decades. But the stock's come in significantly over the past eight months or so, falling more than 50% from its highs. Wall Street's trying to gain the impact of Regeneron's first big patent cliff as they lost protection for their ILEA. That's a blockbuster treatment for wet age-related macular degeneration. In fact, when Regeneron put it this morning, numbers came up a little short because of an ILEA miss, which is why the stock got clobbered today.
Eighth best performer of the Mad Money era is Intuitive Surgical, ISRG, the creator of the minimally invasive DaVinci robotic surgical system. This is another name that we found early on. I first interviewed someone from the company back in July of 2005 when the stock was trading at a split adjusted price of $5.
and change. Since then, we've watched this intuitive robotic surgical system has spread across the globe, constantly improving along the way, and adding more types of procedures that it can do. The company's now a $184 billion behemoth, and this stock has given you more than 10,000% gain since the show got started. I think it's as relevant as ever. The company just reported an excellent set of numbers last Tuesday. I'm proud to be a huge supporter of this one.
In seventh place, with a more than 10,300% gain, is a fun one, Monster Beverage, the energy drink company that was originally known as Hanson Natural before its big rebrand in 2012. Even though the stock's lost some juice in recent years, the long-term gains here have been staggering, and I pounded the table on this one constantly in the early years. Next, we're entering cream of the crop territory. In sixth place, we find a magnificent seven name, Amazon.
Up more than 10,700% gain in the Mad Money era. When this show began, Amazon was a lowly survivor of the dot-com bust, growing its e-commerce business nicely, but still barely profitable.
Since then, though, it's grown into a colossus with its sprawling e-commerce business and a bountiful cloud infrastructure division. Now, as a mega cap tech giant, Amazon has all sorts of exciting new growth opportunities from a still underappreciated advertising business to the prime membership program that's brought the company into the streaming media space. Much, much more. Amazon reports on Thursday night. Well, I'm sure there's a lot of talk about tariffs, of course.
And the state of the consumer. This is one of the few retailers with enough bargaining power to truly mitigate these new import duties. And I still like it for the long haul. Fifth place, Texas Pacific Land Corporation, up nearly 13,000 percent since we first went on air. It's a fun story with its origins dating back to the 1800s when a planned railroad line went bankrupt.
And the only remaining asset for creditors to take was some land in western Texas. Turns out it was very valuable land sitting on vast reserves of oil and gas. These days, Texas Pacific simply leases its land holdings to oil and gas related companies or pipeline operators. It's a great business, but it's not necessarily one that I'd want to recommend with West Texas crude sinking to $60 a barrel today. Don't buy. Don't buy. Don't buy. Fourth place.
Apple up more than 14,500 percent since we went on air. The great thing about Apple is these games were totally gettable. Come on. This was the most obvious story in America for years and years. It's much harder to own here because it's under fire from the White House for sourcing most of its merchandise from China for the cell phones. But it's still a terrific illustration of the fact that you don't need to be a genius to pick winners in this business.
Third best performer over the last 20 years. Booking holdings. Yes, the online travel agency formerly known as Priceline. The stock is up a staggering 22,000 percent. These guys figured out how to dominate the increasingly online travel space and made some very smart acquisitions over the years. Long term, I'm still a believer, although we have to take a hard look after reported just this very evening. Second place. OK, a name, you know, very well from the show, and that's NVIDIA.
Do you know that NVIDIA is up more than 50,000 percent since the show began? NVIDIA. It piqued my interest over 15 years ago when it was originally just a maker of graphics cards for video games. Since then, we've had the privilege of watching NVIDIA blossom into the king of artificial intelligence and accelerated computing. You know, I named my late dog NVIDIA because I wanted you all to know about it. Many people have. I say you bet against NVIDIA at your own peril.
Last but certainly not least is Netflix, the best performing major stock since the show first went on the air. This had a staggering 82,000 percent gain.
You'd be rich by any stretch of the imagination, no matter almost how little you put in when we started the show. Netflix invented the entire streaming video category. It was back in 2005. They were still doing DVD rental by mail. And this was another one that I think was incredibly obvious. Netflix has essentially won versus traditional media at this point. But they're not standing pat, not at all. Still improving the service as much as possible, which is why I bet this one can continue to climb over the long haul. Bye, bye, bye!
Bottom line, when you look at the 10 best performing stocks of the last 20 odd years, so many of these were gettable if you simply believed in your ability to pick stocks and stuck with them for the long haul. That's a pleasure. Let's take questions. Let's go to Bill in Massachusetts. Bill.
Jimbo, congratulations. Happy anniversary. I feel like I grew up with Jim Cramer. You probably did grow up with me. You were in my elementary school class that day.
What's going on? It started out on the weekends and then went to full time in the 2000s. It's been great. I've had a great time with you, I've got to tell you. You're a good man. How can I help you today? Listen, you said before to pick up a little car, but it's up 20%. I'm very happy with it. It's still down $80 from its high. Do you think I could pick up a little more or should I wait?
I like it here. I like it here for the long term. Why? Because I think the Mediterranean is a kind of food that can be like Chipotle. It can be the previous, you know, just the way Chipotle had a big run. I think Kava can, too. All right. Listen up. An investment over 20 years can lead to some pretty staggering stock gains. You can get a piece of the winners in the future as long as you believe in your stock picks and you stick with them.
What for me, I'm money. I'd include my post earnings exclusive with club name Honeywell. Then as I reflect back on the show's 20 year tenure, I'm giving you some insights into the thesis that started all. And it's a little surprising. Of course, all your calls rapid fire tonight's edition of the lightning round. So stay with Kramer.
Look at the stock of Honeywell Go. This morning, the iconic industrial conglomerate reported a magnificent quarter and even raised its full year earnings forecast. Welcome news because we own this one for the Travel Trust. Best of all, management detailed all the progress they're making on their plan to break the company into three pieces. So let's take a close look with Bimu Kapoor. He's the chairman and CEO of Honeywell International. To learn more, Mr. Kapoor, welcome back to Mad Money.
Hey, Jim. First of all, congratulations on 20th years of your great show. So really proud of what you have accomplished. Not many people have reached here. So I really want to start with that. Oh, Bivel, you're very kind. And I want to return the compliment. This was an amazing quarter. High level, great set of numbers, double expectations, better than expected margins. What are the main drivers of this upside at a time when people tell us to be worried about the industrials?
Yeah, so I would say a lot of things are working for us well, starting with our aerospace business continues to perform quite well. We again grew high single digit for many quarters in a row. That's driven by more and more supply chain recovery. Another headline for the quarter was our building automation business also grew high single digit. So as we are working on our strategy to repurpose our portfolio to
to pivot more and more towards high growth verticals, I think that's really showing up in the building automation results. So both the businesses grow high single digit. Other businesses performed on expectations, our energy and industrial automation business. So overall, we're very pleased with the 4% growth we delivered in Q1. And then we maintained our guide for the year, which was originally 1% to 4% organic growth for the full year.
And we feel confident to deliver that. So how do you feel about the breakup plans now? Because now you've got every single one of these divisions are divisions that I would like to own. Yep. So I would say the plans to spin into three companies, Jim, are progressing for plans. We expect to complete the spin off chemicals business by end of this year, earliest later early next year. So that's progressing quite well. We do expect to provide a specific date during our Q2 earnings call because we're much more closer to the event.
And the aerospace spin is also progressing on plan for second half of 2026. It's early days, we'll refine the time to make the date more finer in the next few months. At the same time, I'm working on
what we will call new Honeywell because we are going to spin aerospace and we're going to spin chemicals business, the equity story of that. I really feel excited about what's coming ahead for Honeywell, a powerful automation play, pure play automation, focused on three verticals, and very strong business model of building install base and mining install base. So exciting times ahead for Honeywell. Well, why don't you talk about your role coming up because I think it's going to be a terrific one and one that I think I probably want to be involved in.
Yeah, absolutely. And I think everybody is going to be pleased how Honeywell is going to shape up post the spin. I think the aerospace story is well known, but automation story is going to be equally compelling because automation is all pervasive in our life. And Honeywell provides automation in buildings, in infrastructure, in process industry, in industrial sector. And as data and AI is growing,
More and more software and services are going to become more relevant in that segment. So that makes me believe that we are going to be a very compelling proposition for our share owners as a standalone automation company. I have to tell you, your confidence in your business, which is totally justified, was unshakable in the face of tariffs. I think you pretty much said, listen, we're going to mitigate it. It's not as big a concern as the analysts think.
Yeah. And Jim, that's on the strength of what we call local for local. We basically make product where we sell. So in the United States, most of our manufacturing, what we sell in U.S., is made in U.S. and so on. So the tariffs have an impact of about half a billion dollars in our P&L for 2025. But think about that in a $40 billion company.
on a percentage basis, it's not a significant impact and that's because of our local for local strategy. And we are very confident to mitigate that with a combination of some pricing actions and some productivity actions. So we protect our earnings.
We also want to protect our demand, and we're going to execute on that plan. Well, look, congratulations. Just terrific work. And, wow, I mean, I just thought it was just one of the best quarters I've seen this year. Congratulations to Bimul Kapoor. He's the chairman and CEO of Honeywell. Thanks for coming on the show and a big night for us, too. Thank you, Jim. Congratulations again. Bad Money's back after the break. Coming up, Kramer takes your calls. And the sky's the limit. It's a fast-fire lightning round. Next.
It is time. It's time for the lightning round. And then the lightning round is over. Are you ready? It's time for the lightning round. It's over with Jacob in Alaska. Jacob. Booyah, Jim. Longtime fan, proud investment club member, and grateful beneficiary of your transparency and education. And thank you very much for calling in. How can I help?
Absolutely. First off, just wanted to thank you for two decades of relentless energy, honesty, and advocacy for the everyday investor. You've helped shape how I invest, how I live, and how I teach others to build stable financial futures. I'm honored to learn from you, to speak with you, and to carry your mission forward in my own way. Now down to business, I wanted to ask a follow-up question on my hometown carrier, Alaska Airlines.
Well, first of all, it's really well run. So don't take this the wrong way. But the airlines are wrong to own right here because people think we're going into a travel recession. I think you'd still go lower. Let's go to Joe in New Jersey. Joe.
Hello, Mr. Kramer. Congratulations on your 20 years of mad money. And over the years, I've learned and earned and kept a diversified portfolio. And very importantly, held on the Costco and Apple for many years with well-played. Well-played, Joe. How can I help you now?
And with tariff uncertainty, is Kimberly Clark a buy? All right, you'll 3.8. I think you can go down to 4.5% because right now that's the operative level. They did not make the quarter. I was a little bummed out. Let's wait till it goes lower. Let's go to Kate in Georgia. Kate.
Jim, congratulations on 20 years. That's awesome. Thank you. I'm so grateful to be a small part of the journey. And I've been in the investing club from the beginning. Thank you. And I've gained so much insight. And I've learned so much. You're too kind.
I am so grateful. So this morning I took profits in CrowdStrike. And I was just wondering, how do you feel about CrowdStrike for the long term? Okay, I think for the long term, it's terrific. We had to take some profits out of it too because it just got too big. But I think George Kurtz is delivering an amazing product. And I think he's got a lot to say. He's giving a speech tonight. I think that CrowdStrike is terrific. Let's take another. Let's go to Ross in Alabama. Ross.
Happy Tuesday. Thank you, Ross. Right back at you. What's going on?
Hey, man. Colin, some questions about your thoughts on a stock I've been watching. It's about 30% off its highs from a few months ago. That's DDS, Dillard. Now, I mean, we're in a world now where you're really going to make money in Amazon, in TJX, okay? You'll make money in Walmart. You're going to be struggling to make money in any other retailer other than Costco. I don't think Dillard's is a place to be. Let's go to another. Let's go to Tyler in Illinois. Tyler.
Booyah, Jim. Love the show. What do we think about buying Nextracker NXT? Okay, I do believe. Look, it had a good quarter. I did think that the president did not really care for win, but this kind, he doesn't mind this. This is technology all made in America. So I think you're okay. Not great, not bad. And that, ladies and gentlemen, is the conclusion of the lightning round. The lightning round is sponsored by Charles Schwab.
Coming up, Kramer's taking a walk down memory lane to share Mad Money's origin story and his message to all the investors out there planning for the long haul. Next. When I came up with Mad Money more than 20 years ago, my idea had its genesis in the ponies. That's right, horse racing. I always liked the races, just like my mother. We'd go together, we'd bet on every race, we'd bet on some favorites, mostly long shots. We lost a lot of money together.
In college, I went to Suffolk Downs' broken-down track any beautiful day during the season and continued my losing ways. I gave away my work study on a vain attempt to augment it. Then one day, the sports editor of the Harvard Crimson, a man who knew how to handicap, taught by the best, Andy Byer, the amazing racing writer, took me to the track because he heard I couldn't resist and was taking a beating.
He said if I was going to gamble, I had to gamble wisely. He told me to bet only when I had done a huge amount of homework on a horse and figured out whether the odds looked misplaced against the field. Betting on the ponies wasn't meant to be a lark. You had to have both discipline and conviction. You had to study the past performances, visit out-of-the-way racetracks, Delaware Downs, Liberty Bell Park, and find the anomaly.
Bet on that one. That one only. And then leave. Basically, he was telling me to look for the horse racing equivalent of a stock misvaluation. And that's exactly what I did. Disciplined with competition.
with conviction. And suddenly I won and I won and I won. Real money. Enough to go places, do things, dress better. I kept it up and I went to Florida and then to California as a reporter, always looking for the out-of-the-way tracks, always some isolated instance, a maiden claim or Golden Gate, fourth at Santa Anita, didn't matter. I studied and studied to find that one horse, the unpolished gem.
Now, when I became a professional investor, I had to come up with multiple wins constantly to justify my paycheck. But I never forgot what it felt like when I was a struggling, well, I guess, nascent reporter trying to make a buck with the track. What does this have to do with my money? Simple. Same principle. I know the Greybeards will always say you should go with index funds. I get that. But there are still millions of people who want to invest in individual stocks. They just don't necessarily know how to do it wisely.
I figured if I could show people what I learned, first at Goldman Sachs and then at my hedge fund, if I could teach them the way I was taught at the track, they could at last have a fighting chance. Discipline, conviction, no larks, no tips.
I refine these ideas first in my radio show, Real Money, and then on this show, adding some entertainment to make the teaching go down more easily. A wild opening, a couple of stock skits, and then interviews once the CEOs finally decide to come on. Always thinking like I was with my mom, just out there gambling. And let's have them invest, increase the odds of success, stay interested in their own money, and win.
Here we are 20 years later, and I'm more convinced than ever that it's my job to help teach those who want to do it themselves. So far, the students seem pretty darn satisfied. I guess I'll just have to keep going because I'm not going to stop until the network sends in guys with butterfly nets to yank me off the air.
If you've ever dabbled in the stock market, chances are you know who Jim Cramer is. One of the greatest, most spectacular performers on television. We turn now to a Wall Street veteran. A financial heavy hitter. And he's the man hundreds of thousands of hopeful investors turn to every day. Makes his living throwing chairs, hitting buzzers, and screaming at the top of his lungs. The mad prophet of profit, Jim Cramer. Jim Cramer. Please welcome Jim Cramer. Mad money's Jim Cramer. My first question is, we've never discussed this, what's wrong with you? Booyah!
Hoo-yah. Hoo-yah. Ski daddy. Ski daddy. We have no idea what that means. Stock guru, mad money, best-selling author, and fantasy football fanatic. Market's crazy, so you gotta have a mad man. We were talking about making money. Jim Cramer is here tonight. This is the great Jim Cramer from Mad Money on CNBC. A really terrific show. Mad Money's Jim Cramer. Jim Cramer.
Jim Cramer hosts Mad Money on this network. What is CNBC? I'm here to do one thing, get you more friends. Stark Industries. Let me show you the new Stark Industries business plan. I'm grounded and spend all day listening to my dad yell at Mad Money with Jim Cramer. Are you okay? Oh, yeah.
Yeah, it's nothing. I was a guest on Mad Money last night. What's happening? It's one of you, Jim Cramer! Okay, stop it. Stop it. Jim Cramer had this to say about the economy. He's a prophet. Listen. He's nuts! They're nuts! They know nothing! You said it was going to be the end of the world. Nobody knows anything. They know nothing! They know nothing! In retrospect, don't you think you were too calm?
Whatever money you may need for the next five years, please take it out of the stock market right now. That was a call that should have wrecked my career. And it would have if the market went up. But I stuck my neck out and did it. It saved a lot of people's lives. If he was right, at that point, we were at the beginning of this great panic. You're not stupid. Don't say that. It's very hard. They're stupid. Yes! I have a gift to turn people on to this stuff, to get them involved.
I love doing it. I love to teach and educate this stuff. This stuff is for me. This stuff is really for me. It is the right thing. I cannot believe how lucky I am at this age to have come across an unbelievable thing, which is a show that I run and I love.
The only reason that we can do this show is thanks to a legion of amazing people through the years. Some you see around me who have deep Mad Money roots and true friends of the show. And some you see behind me, back in the control room. We like to say there's always a bull market somewhere. And we promise to try to find it just for you right here on Mad Money. I'm Jim Cramer. See you tomorrow. A special Mad Money documentary starts now. Booyah!
Thank you.
You should not treat any opinion expressed by Jim Cramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Cramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Mad Money Disclaimer, please visit cnbc.com forward slash madmoneydisclaimer. How many discounts does USAA Auto Insurance offer?
Too many to say here. Multi-vehicle discount. Safe driver discount. New vehicle discount. Storage discount. Legacy. How many discounts will you stack up? Tap the banner or visit USAA.com slash auto discounts. Restrictions apply.