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tv   Mad Money  CNBC  December 15, 2022 6:00pm-7:00pm EST

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so vick. dan nathan, i agree with that i'm long vix calls. >> you're with karen. >> so we're talking about stocks in sectors that might do well and might not do well in a height rate environment, i think xlp do flot do well in for watc. see you back here tomorrow at 5:00 "mad money" with jim cramer starts right now my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now >> hey, i'm cramer welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job, not just to entertain but explain how days like this can happen so call me at 1-800-743-cnbc or tweet me @jimcramer. news flash jay powell does not work for the
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stock market he doesn't care if the dow plunges 764 points, s&p plummets 2.49% or the nasdaq nose dives 3.23%. >> the house of pain >> he only cares about price stability, or more specifically the lack of price stability. and as far as he's concerned the stock market is part of the problem. i'm not saying the federal reserve has a secret plan to crush stock prices at least not any more than they had a secret plan to boost stock prices during the worst phase of the pandemic the market's incidental and collateral what the fed cares about is the economy. they heat it up when it's too cold and they cool it down when it's too hot right now it's too darn hot. jay powell's doing everything he can to beat inflation. so the idea that the market would rally after his comments yesterday, they were rambunctious, his comments those were angry comments. done a sotovoce way but it
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should never have rallied. what we're seeing is the meltdown we should have had yesterday. there was some sort of bizarre today after the press conference as if traders were so busy shopping for the holidays that they forgot about the market until after the close. other than a few offhand comments about how we got a few decent inflation numbers powell could not have been more clear that he is not thrilled with what's going on here that he's not just trying to stabilize prices at these levels he wants to roll back the price increases from the last couple of years he's not looking for the consumer price index to come i lower than expected. he wants it just plain lower think absolute, not relative in his ideal world he wants you to go to the supermarket and see kind of the same prices we saw three years ago, or at least prices you'd expect if we'd only had 2% annual inflation since the start of the pandemic. and you and i who go to the supermarket know that's not true he wants to see plenty of used
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cars selling for low prices. he wants to he see those funny stick guys and men that blow in the breeze he wants more of those guys. he wants vacation -- he wants vacant homes, something that might be a stretch given what we heard from lennar this morning, they're simply not building that many new homes and not many people want to move from existing homes. i hadn't thought of this i read the lennar call so easy to realize they don't want to move from the existing homes because they got those incredibly low mortgages and they'll lose them if they move so the low houses, the lower homes are taken. which brings me back to the stock market, which is what we care about this is not used car market home this is stock market home. jay powell knows the most effective way to fight inflation is by putting people out of work but he knows he can't cause mass layoffs overnight other than a few people on his staff powell doesn't have the power to fire anyone i don't even know if he can fire people on his own staff. but he also knows the stock market has a huge impact on how people spend you know what they call it
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they call it the wealth effect all right? that's what we're talking about here he needs recent retirees to deplete their savings so they'll come back to work. he needs people that are overextended on their credit cards, it looks like defaults are going up big, to sell some of their stocks. about 4 million workers away from achieving wage stabilization. his biggest worry. powell doesn't know what percentage of people have their life savings in the stock market and therefore might come back to work if stocks keep going down he doesn't know how many workers at tech companies might need to seek other employment as sbc, that's what the smart people call it, stock-based compensation, evaporates in value. what powell knows is that the market's up substantially in the last decade, up enough to make it an obstacle to fighting inflation. so yes, while he's not explicitly trying to send stocks lower -- he's certainly not going to shed
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any tears over it. if anything, lower stock prices are a win for the fed. now, we spend a huge amount of time worrying about when or if we're going to have a recession around here. i get that it's a real important question but from the fed's perspective it's not the key issue you have to understand powell thinks strategically, not tactically maybe he reads the lennar conference call and sees how few homes are actually being built in the country he can't change that by raising rates. in fact, higher rates make the problem worse because the home builders aren't dumb enough to spend more on building in a series of rate hikes at least not anymore they used to be when i was growing up so what can powell do? the smartest thing to do would be to dump hundreds of billions of dollars worth of long-term bonds that the fed has on its balance sheet, something that would instantly send mortgage rates higher lately those rates have been going lower due to recession fears. if you get them a little bit higher, then maybe home prices will actually come down and that's what he wants but the second smartest thing powell could do is what he's
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already done higher rates are going to come that's better than alan greenspan who questioned whether stocks were up because of irrational exuberance in 1996 right before one of the greatest multiyear bull runs in history it wasted and hurt the credibility of the fed he doesn't want that to happen these days, though, so many people have their compensation tied up with stocks that if powell can publicly indicate his utter indifference to the stock market by taking short-term rates up so high that they're a great investment you can presume we're going to have downward pressure and a downward pause. there's one problem with his plan just as lennar's executives were ready when the stock market stalled and mortgage rates went higher, most others know what what there is to do when there's a slowdown but only smof them are actually willing to pull the trigger. the older companies the industrials seem most savvy. they know a recession means it's time to hunker down! they're swift. they're brutal it's like they're bad santas they're making a firing list they're checking it off once and
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then they terminate. different story out west see, out west in silicon valley where the real crazy price inflation is, it's different i think they don't have any idea how to hunker down i don't know, maybe in their third vacation home they have a little hunker down room. but for whatever reason these people are gun shy if anything, they seem addicted to hiring more people. why? in order to land and expand or create moats or adjust the market, whatever gobbledygook language they can use to take your money and put it in their pocket they know they can inflate their earnings or lack thereof by paying people in stock i think silicon valley is in denial they don't want to acknowledge the new pretty that their businesses are much more fragile than they thought. so it's time to start husbanding cash see, it turns out a lot of -- this is what's really amazing. a lot of these digitizers are more geared to advertising than people realize or at the very least they all thought advertising would move
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online, creating a perpetual bonanza. i don't know a soul out west who believed that the ad business was cyclical even though advertising as a whole has always been hostage to the economy. digital advertising used to be different but not anymore. many companies got so many ads from crypto companies that they thought they had a crypto annuity going on crypto may not be going away entirely, but i think we've seen the last of the big ad blitzes i think a lot of the actors and big-time sports guys they may have learned their lesson too. i mean, don't you like when you see them -- then there are companies in the marketing and customer relations management, crm, they're all good until their corporate customers cut back on marketing, which is what most bitzs do when there's a recession. there are other tech outfits that used to dominate a niche. amazon web services. now you have google cloud, cloud infrastructure, oracle, snowflake. and they're compete.
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and there are dozens and dozens of companies that analyze other people's data. i have to tell you if i hear one more company that says we have a proprietary way to analyze their data, i mean, enough we only need a couple to do that there's really only one private equity firm homer bravo that seems even interested in acquiring these cloud plays. it wouldn't matter if these tech companies only amounted to a hill of beans. they make up 26% of the s&p. forget the nasdaq it's riddled with that. and they're recession irrelevant bottom line, when you add it all up investors have to learn that the fed is not your friend it's not your pal. if anything, it's your enemy at least until jay powell finally beats inflation. and then we can all be friends again. ♪ hallelujah ♪ how about clyde in michigan? clyde. >> caller: hi, jim first-time caller, long-time listener
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>> okay. >> caller: i was hoping you'd give me some advice on generac holding. grc. >> i'll tell you why i'm worried about generac. see this new ford electric 150 what do you need -- why do you need a backup generator for when an f-150, you plug it in it can light up your whole darn house i say out with the generac, even with the f 150 all right. it's time to realize the fed is not your pal buddy friend anymore. if anything it's your enemy. at least until jay powell finally beats inflation. then it will be kumbaya. on "mad money" tonight going once, going twice, sold to your portfolio. i'm sitting down with richard brothers auctioneer to see if this would be a strong under the radar machinery play then we're continuing our top notch series with the sectors of the year that i like closing out the health care space. i'm going to do three stocks that i think could have a pretty good year. and in a market like this, is it time to circle back to a company that is a data base company, one like s&p global that people
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don't understand i'm checking in with the ceo so stay with cramer! >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer hashtag mad tweets send jim an e-mail to or give us a call at 1-800-743-cnbc miss something head to
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we're always looking out for really interesting stories i've got a new one for you this is a company i've known for quite some time but not well
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i'm talking about richie brothers auctioneers, which helps its customers manage their fleets of heavy equipment, trucks and other large assets and that includes selling all this stuff through live auctions i was an auctioneer at one point in my career so i'm very interested here's a stock that's been a steady outperformer for years even though it's down for 2022 that's declined mostly because richie brothers pulled back hard last month after announcing the acquisition of iaa, a global marketplace for damaged and low value vehicles we're going to be spending some time on this one looks like somebody on wall street doesn't like it, they don't like the cash and stock deal but maybe we can convince them otherwise let's take a closer look with ann van dosen, ceo of richie brothers auctioneers welcome to "mad money. >> thank you i'm so happy to be here. >> it is great to have you tell people what richie does it's a pretty niche business >> it's an incredible business i've been with the company for three years. we are like e bay for large industrial equipment so when you think about you finish a construction project and you don't need your
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excavator anymore we transact $6 billion of that around the world. >> are there centers where i could go and bid >> that's the beauty of our business for sellers there are centers to drop the equipment because when a construction project is done what are you going to do with the excavator? the buyers are almost entirely online they can come to the centers to kick the tires because the equipment is there but largely they're bidding online from their homes. >> who are these buyers? >> we have buyers from over 100 countries globally but they're small business owners they're buying the equipment to get their work done largely. >> okay. so you had an incredible third quarter. a lot of people worried about the economy slowing down i would think you have a better handle on the economy than almost anybody on the fed. how are things >> it's an incredible business we like to say we are both a cyclical business when the economy is hot, but better than that we are a countercyclical business when things are great and the equipment is changing hands we make a lot of money. when things are tough and they need to pull back, we need
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liquidity we need even more money. >> talk to people about your returns over the last, well, many years >> it's really an incredible business think about it this way. $6 billion of equipment that transacts, it's largely consigned. it's not our money so we connect buyers, we connect sellers, and we generate over 100% of net income in cash every year >> so that brings me to this acquisition. iaa transaction. this sounds like a business that gets into a far more competitive area, a more pedestrian area where you may not have an edge, and there are some analysts including a very smart fellow from bank of america that just says look out, not what we signed up for, downgrade to neutral. right when the deal was done >> right yeah no ceo likes to see that reaction early days. we've been spending a lot of time with shareholders including bank of america and other analysts explaining the deal the confusion on day one was hearing cars and thinking
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cyclicality. >> exactly and that's what i said on air. i don't know, this car business. i'm not sure, especially with the problems you're seeing with the carvanas and stuff >> no question this is an incredible slice of the car industry called salvage cars it is completely countercyclical. in fact, this is how it works. a car goes into a body shop. it gets assessed for the cost of the repair let's say the body shop says this is going to be $15,000. if the used car pricing is high, the car will get repaired. as the used car pricing falls the car is deemed a total loss and it goes to one of -- >> my duaughter had a totaled car. i couldn't figure out what the heck happened to it. >> it's either iaa or one other competitor it is a duopoly of a completely countercyclical business generating incredible margins and a 12.8% growth over a decade so what happened day one was confusion. bank of america actually hosted a call with us two fridays ago because they wanted us to be
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able to tell the story because there was so much misunderstanding early days. >> have you been able to change anybody's mind a bad daal could be a good deal >> today's market broadly aside we've seen a pretty impressive rebound of the stock even as we're just starting the conversations with our shareholders >> what made you go this company? are you an auctioneer by background >> i am not. i run companies. so this is my third ceo gig but my first public company ceo gig. the last two were private equity backs vsh backed nobody calls me when all is well people call me typically when businesses stagnate. ritchie brothers is magical but it hadn't grown in about a decade when i get the call it's not about what is there to fix, it's about how big can it be? the space we're in there's $300 billion of used equipment that changes hands every year and we do 6 of it. when i got here we did 5 of it there's a long way to go it's an incredible trajectory in a countercyclical magical business >> and we have a number of
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infrastructure bills coming out of washington that we say add up to $100 billion. we don't think there's enough new equipment to get the job done will ritchie brothers lots be pretty busy? >> the lots will be busy and our pricing is high. if there's he low demand and the bills don't go through -- >> you get a good percentage no matter what. >> no matter what. >> i've got to tell you. i tried to get the -- i like businesses that nobody else is in >> right >> i don't know anybody, a listed company who competes with you. >> we are the biggest by a factor of ten. it's a magical place to be >> well, look, i've got to hand it to you. and i'm glad you said that about the deal when i first heard about it, i said, why would he they want to be the dominant player in one industry and just be an also ran in another but you are not really in the other people's businesses. >> you got it. very few people are in salvaged cars in fact only two >> well, i've got to tell you i think it's a very exciting situation. i am so glad i finally got you to come on because i've always
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seen you on the new hire list, new hire list no matter what and that's a credit to you ann fandozzi, ceo of ritchie brothers auctioneers guys, now that i heard better about what i was so worried about which is this auto business i realize it's not about autos, it's about totaled autos and no one knows what to do with those. "mad money's" back after the break. >> announcer: coming up, a look back and a view to the future. take a holistic view of the health care sector with cramer, next ...comes the legendary cat with 9 lives. hmm, hmm, 8 lives. 7, 6 5, 4 3, 2. you are down to your last life. i am not really a math guy. rated pg.
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where health can go. after a horrific day for the averages -- delayed reaction from yesterday's fed meeting it's more important than ever to look back on the past year and see what worked, which stocks managed to go higher in the face
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of relentless rate hikes, the fear of a slowing economy. all week we've been highlighting the best performing stocks in the s&p 500 and their components we've been through energy, the utilities, and the consumer staples although after today's beatdown only energy and utilities are up for the year. next up, though, is health care, which is down just over 2% for 2022 what a year that we have to celebrate the companies that are only down 2% we don't want to paint with too broad a brush when it comes to health care because there are 64 of these stocks in the s&p 500 and they don't necessarily have that much in common. this year wall street's been very receptive to? subgroups and very hostile to others that's why the best-performing health care stock is up more than 50% for the year while the worst performer's down roughly 70%. health care captures everything from insurance companies, the hospital operators, medical device makers, whole range of drug makers. even within drugs there's a big difference between big pharma established companies with enormous earnings and smaller biotech outlets that tend to be a lot more speculative many of them don't have any
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sale sales let alone earnings wall street likes profitable companies with consistent results, nice zpfds reasonably valued stocks that make things and do stuff big pharma in a nutshell which is why three of the nine best performing stocks in the s&p were pharma. there was merck. how much we like what they're doing. especially with the vaccines eli lilly. and bristol-myers with an amazing cancer franchise on the other hand, while the larger biotechs behaved like big pharma the smaller ones feel more like the speculative stocks they trade based on their future prospects many years down the road which may sound less attractive when inflation's raging and interest rates keep rising just like every other sector the high multiple growth-oriented health care stocks got obliterated this year. whether we're talking medical device or the life science arm
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dealer or the medicine. really good for a long time. or something like aligned tech most of my friends have a line where you can't see it i don't have it. meanwhile, the biggest winners were boring, consistent operators with cheap stocks. you know if you were in our meeting today, our club meeting, we talked about how beautiful boring is. in praise of boring. kind of like erasmus consider the top three cardinal health, which had an activist mckesson and cigna while cigna's a straightforward health insurance play, more on that in a second, hart and mckesson the other major drug distributor, amerisource bergen up nearly 25%. i've always loved those companies. rather than going into them individually it's more important to go into why the drug distributors could catch fire this year.
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these stocks have not been good long term. have not been good long-term performers in fact, from 2015 to 2020 they were dogs. powerful bull market in the middle of the decade we had a wave of drug pricing controversies. remember that fellow martin skrli? that made us wonder if these middle men really need to exist. they also had to deal with liabilities related to their role in, yes, the opioid epidemic you about the drug distributors are still here and i don't see them vanishing anytime soon. i just see them getting bigger plus earlier this year they reached a massive $26 billion settlement along with cramer fave j&j that resolved most of the state and local opioid claims although that's a lot of money it does get rid of a major overhang so how come these stocks finally skaut fire in 2022 simple these are without a doubt the most textbook recessionproof stocks there are they put up consistent numbers regardless of the state of the economy. at the same time they came into the year with incredibly low
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valuations mckesson was at 11 times earnings that's exactly what wall street wanted this year those valuations were ridiculously low in retrospect because of how good these companies are. now, card'll used to be the worst performing in the group. it's now become the best thanks to elliott management that very smart activist firm i always talk about which took a big position in the stock this year. remember when they come in they offer a real plan and you should adopt it because it's more thought out than yours mckesson is the second as for amerisource bergen the new laggard of the group a lot of that is because its top shareholder walgreen's has solid off 40% of its positions since the end of march we've got to go babb and do a deeper dive on walgreen's. going forward i'm less enthusiastic about the drug distributors because they're no longer ridiculously cheap and they'll go out of style the moment the fed decides to ease up and a lot of people are treeg to position themselves for that that's premature i said that today at the club meeting. and i also said it on sara's fantastic show how about the third best
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performing stock it's called cigna. the managed care names roared this area because they're highly inflation resistant. but the best of breed united health care unh was only up 5% while humana which we own for the charitable struft was up 10%. it's a great turnaround story. how do they do it? it's not that complicated. cigna's turned in one strong quarter after another. they've gotten very good at upod, underpromising and overdelivering going to next year, he though, this is far from my favorite because cigna's got a higher proportion of its business from corporate customers. meaning it will take a big hit if jay powell gets his wish and puts a real dent into the job market while i like the managed care stocks i'm really telling you, humana's the right one if you want to know nor at the cnbc investment club meeting pf or united health it's a real good company beyond the top two performers let me give you a few others that i find enticing there's pfizer
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remember, i like boring. which didn't do much this year because people were worried about a post-covid falloff from the vaccine business but pfizer used those vaccine profits to mac some major acquisitions that ran up their pipeline they bought arena. and global blood therapeutics for a host of rare diseases. best of all pfizer sells at eight times earnings next up is danner. that's an arms dealer to the life sciences and diagnostic industry this is another one that was dead money in 2022 because of its covid testing exposure now that rolled over danner's one of the best run companies in any industry which is why we own it for the charitable trust and i think it's going to have a bang-up 2023 as a business we're up against some easier comparisons. finally, some of these medical tech names have been beaten down to the point where they're too enticing to ignore one that's been on the show many times. edwards life sciences makes non-invasive heart valve replacements surgical monitoring
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equipment. this is a growth stock that's down 43% even as yes the underlying business hasn't deteriorated that much at all. if you're ever tempted to buy a beaten down tech stock in this environment maybe you should be thinking about med-tech. bottom line, when look at the year's best performing health care stocks i don't see the drug distributors repeating those gains in 2023 and while i bet managed care names can keep winning i'd rather swp out of sig cigna and swap into unh or humana todd in ohio todd >> caller: boo-yah, jim. >> boo-yah, todd >> caller: lifetime fitness based out of minnesota became a publicly stralded company last year around october. it's a low cost stock. it's entering into an arrangement with united health care based out of minnesota as well, who has an arrangement with medicare, so that lifetime fitness people who have certain medicare benefits can go in for free, go in through their
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medicare -- >> right and that's one of the reasons i like lifetime so much. at 12 bucks. we spent some time with them i it's right next door it's more the country club of workout places we met with bar makravi. we knew him the first time around i'm going to pay you a very high compliment i think todd's got horse sense let's go to dave in virginia dave >> caller: boo-yah, jim. how are you doing? >> i'm doing well. how about you, dave? >> caller: i'm very good richmond, virginia i want to give a shout out to my uva cavaliers. undefeated ranked second in the country >> i like the cavs i've always been a cav fan never a duke fan i'm really sorry about that. that's where i am. it's where i stay. okay >> i like to hear that big game against houston on saturday anyway about a year ago -- about a year ago, excuse me, you were recommending eli lilly i did an analysis of lilly,
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bristol-myers squibb, and merck, and i ended up buying merck on my own research. i've held it about a year. i've got a 50% gain in it. i'm thinking it might be time to ring the register. it's near its 52-week high of -- >> let's go over this. dave, here's the problem it's such a great company, it's doing so many things correctly bulls make money, bears main money and hogs get slaughtered but i happen to any v tthink yo getting rid of more than just a little bit to take a good profit so you are not piggish when you look at the year's best performing health care stocks i don't see the drug zrirkts are putting these gains into 2023. much more "mad money" including my exclusive with a company that i think is a total gem that's s&p global. the company has its sights set
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on a new strategic vision that i know i was actually part of because i helped sell a company to them they are real smart. then today our monthly meeting for the cnbc investing club. i saw something in the chart of eli lilly that brought to light an important investing lesson that i've learned over the years. i'll reveal it and you'll like it and of course all your calls rapid-fire in tonight's edition of the "lightning round" so stay with cramer! [newscast audio] hello, world. or is it goodbye? you know, it seems like hope and trust are in short supply. [clap] now, as businesses we can blame and shame. or [whistles]... we can make a change. [clap] we can make work, work for our communities.
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so what do you do with a high-quality company that has gone out of style just in the wall street fashion show not in reality because some of its business has taken a hit in a
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rising interest rate environment or in a slower issuance environment? that's a question we need to ask ourselves about s&p global which is mainly a ratings agency for the bond market but also runs all the s&p and dow jones indices as well as having a market intelligence division for institutional money managers tough to be in s&p gloenl's line of work when rates are on the rise that's why the stock peaked almost a year ago and has recently fallen almost 30% from its highs even though it's had a nice bounce the last couple months p i think the stock is wildly, wildly undermaestimatedn terms of what this company can do s&p global's been a tremendous performer in bull market but i think it can be in even tough markets. i want to bring in doug peterson i know doug for a long time and he's got a great vision for what to do. president of s&p global. it's a pleasure. i want people to understand that when i first met you i realized very quickly this is not a company that just does ratings you have become the main
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technology engine behind market analysis and intelligence. and people don't know that so i want to give you the floor to explain to people who you really are >> well, with that introduction thank you, jim, for having me. and we've become a data and analytics company that covers every market through our ratings division, indices, market intelligence we'll also have the best commodities data and analytics business with pricing and we also have an automotive engine that's providing information about such a critical market going through autonomous and electric vehicles. >> you have a vitality index that i love. you have an automotive mobility index. you have what everybody wants. who creates these, how do you decide what people want and how do -- because they're all rigorous what to put in >> if you think about the index business we have, the s&p 500 is the market benchmark and dow and all of the different indexes around them. with the merger with ihs market we brought in a set of fixed income indices that now gives us
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the ability to have equities, commodities, fixed income. he we recently launched a new index which is of automotive metals >> i love that index >> electric vehicle metals and this is the type of an index we already have with very creative people but it all starts with listening to our customers. we have to hear what the customers want, what the to make informed decision sxtz trends that are taking place in markets. >> you also should -- i'll say it for you your indices business has saved people billions of dollars this has enabled people to be able to have a low-cost way to invest that we know from warren buffett returns better returns for the most part and you are the custodian. >> we have an analysis we do every year it's calleds ppiva s&p index vs. active over the last year the index has beat 90% of active managers. and over the last 25 years saved over $400 billion of fees. >> $400 billion.
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>> $400 billion of fees. >> people have to understand that is real life savings. that one when it is accumulated and reinvested is going to change people's lives. >> exactly >> now, you yourself have had tremendous margin expansion for your company people say sink and swim, if there's a lot of issuance they do well, if they don't they don't do well. you have created a secular growth company sometimes i wish people didn't even know that you also have this great business where you do rate different stocks -- different bonds. >> well, the ratings business is really foundational to s&p global it goes back over 150 years. but this is a business that despite having a difficult market this year we see over $7 trillion of debt, which is on balance sheets, which is going to mature over the next three years. this will come back at some point. i can't call a bottom to the market we have over 1 million ratings outstanding right now and subpoena 1750 analysts that are there, they're working, they're
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providing the information that markets need people would be surprised at how many different ways ratings are used people think about the letters, but it's the research, it's the analytics, it's the analysis that goes along with it. and everybody in a credit business, a fixed income investment business, they're all using our ratings. >> now, there's also judgment. there's a moment in your analyst day which is superb where you're asked about crypto and i read your answer as basically it really isn't pertinent enough to what we do but i know that you are a straight guy, so you're not -- you did not disparage it but you did kind of point out it's really not -- it doesn't qualify. how did you know >> it's so early and it hasn't been picked up yet by institutional investors with really look at our market to serve all types of institutions, corporates, government and institutional investors. the crypto market has not really taken off. and you think about what we
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provide, reference pricing, data, analytics, research, ratings, et cetera, those are not yet appearing in the crypto market but we have a full-time team working on this. they are meeting with central bankers, learning about digital currency they're learning all about the technology behind this so we could at some point figure out where we can play in this world. >> okay. i'm glad you're not just jumping into it. a lot of people did. there are many people who say there's companies that greenwash. and i always say have you ever met doug peterson? doug peterson has never created an index made of companies trying to fool people. you have a group of people who spot that stuff and suss it out. and it's quite an impressive group. >> we have a group of people that are called sustainable one. it's a horizontal group across the company. we're providing sustainability, climate, esg products and services covering every type of analytical pull you want we've serving the markets. there's a need in demand for sustainability information
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we already watching possibilities coming out of the issb, the international sustainability standards board to see how markets develop for standardized disclosure. but this is a market that's growing because there's demand >> i always tell young people if it's s&p it's kind of like the good housekeeping seal of approval it means they're not being fooled you have too many good people to be fooled by the guys who really aren't doing the job >> well, the foundation of everything we do is independence, it's rigor we do things with methodology. we publish our methodology and we're transparent. so everything we do follows those principles >> you make these acquisitions -- i happen to have been on the other side of a deal with you let's take kensho. i knew kensho from stuff we had done at cnbc it seems like what you do is take the platform of a kensho and then you blow it out to all your different verticals and it keeps working. >> well, kensho is an artificial intelligence and machine learning company we bought five years ago and it's really paid off. on investor day we were demonstrating one of the products it's called scribe
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it takes text and language and turns it into data and we were actually transcribing our investor day right there on the spot. so we're using these tools that transcribe they connect they link. they also find new ways to think. and our motto is we're finding ways to allow analysts to analyze and not worry about spreading numbers and linking things together. can spend more time making informed decisions because of the a.i. >> you're doing a great job. it's very rare you meet someone you do a transaction with and you hope he's done better as well he's done many deals they've recreated the company. this is not a ratings company. this is a company that does more analysis than any other company i know about all the give investments that are out there doug peterson president and ceo of s&p global. so good to have you on the show again. good to see you. "mad money's" back afterthe break. >> announcer: coming up what's on your mind, cramerica? give us a call the "lightning round" is
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it is time it's time for the "lightning round" until you hear this sound and then the "lightning round" is over are you ready, ski daddy time for the "lightning round" on cramer's "mad money." start with colin in minnesota. colin. >> caller: hey, jim, how are you doing? >> i'm doing well. how about you, colin >> caller: i'm great so i'm just curious what your thoughts are about oshkosh i know in the past -- >> i had them in here.
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we had them outside. i like the look of their trucks. i like the look of financials. i like the look of management. i think it's a slow grower could be real interesting, though, because boy do we need a replacement cycle for that emergency equipment. let's go to aaron in new york. aaron. >> caller: hi, jim >> aaron >> caller: i was wondering if you think the ibm boron will continue margins -- >> i'm impressed the stock has had quite a move up it's in typical pullback fashion. i think you can pick some up tomorrow let's go to gus in maryland. gus! >> caller: hey, jim. >> hey, gus. >> caller: i want to give you an spn mr. mark's class boo-yah to ya i want to know what you think about rep. >> the ethanol market i'm not really into it i'm going to have to say ixnay on that one. i'm sorry, partner let's go to trent in ohio.
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trent. >> caller: boo-yah, jim. i'm talking about a stock i own in my investing and money management class quick shout out to mr. hernan, by the way >> very fine drug company. i've always liked it i'm putting it on the list it's fantastic i like your class too. your whole class seems to he no what it's doing. let's go to tom in california. tom. >> caller: boo-yah, jim. how are you doing? happy holidays >> it's great. how are you doing? >> caller: i'm doing awesome hey, i'm a long-time listener and follower and i just want to say i think it's amazing the way you can remember all these companies and all these symbols and all the information on each of them. >> well, thank you i want you to join the club. i think the club would be great for you. how can i help >> caller: i really think this company is on to something they're developing technology that transmits data faster with less power the company is light wave logic.
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simple as lwlg and i hope you have some info on them >> tom, you have cut me to the quick with lwlg. i do not know that stock but ben stoto which does rhine rhyme indeed with foughto, are going to huddle and we're going to figure out what the heck that light wave company does. and that ladies and gentlemen is the conclusion of the "lightning round" >> announcer: coming up -- cramer recaps the final club call of 2022 everything you need to know from the club it pays to join next
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nothing like holding a conference call in the midst of the worst selling spell in ages. yeah, in our investing call club today we he do them monthly, replays available to members now, and while we were talking
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the entire market was falling apart. as much as i hate it when stocks are in freefall it doesn't change the fact that this can be a teachable moment here's a great example i have tremendous faith in the stock of eli lilly a new drug for diabetes that doubles as a weight loss pill. it hasn't been approved for weight loss yet but the early results from phase 2 trials show approximately a 15% weight reduction to take the pill and 20% to 25% reduction if you take it as a shot. so many other pills make you gain weight. i don't eat that much and i'm an exercise diva but the forecast was true i can't wait to get my hands on lilly's new drug when it's approved for weight loss but here i am in my research record jeff marsh going over the charitable trust positions in the q&a part of the call where we answer your requests and sure enough somebody wants to know is it time to take profits in eli lilly. the chart gets put up behind me
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and i've seen it while i've been talking the stock is going into freefall two thoughts immediately go through my mind at the exact second one is i don't want to lose money on lilly as discipline should always trump conviction i don't want to turn a gain into a loss bulls make money, bears make money, and hogs get slaughtered. at the same time i think lilly's going to have one of the biggest stories of 2023 because this weight loss drug if approved could give the stock a massive boost. it was jeff's question we all read responses and we pointed out we did trim some lilly for the trust because we didn't want to be pigs but if we didn't already own it our inclination would be to buy some of course when you look at the stock chart plummeting your gut reaction is it's going to get killed but you can't let panic -- a bad invest runs away from a stop just because it's going down a good investor says okay this might be a buying opportunity given that lilly just had a successful analyst meeting and
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there's nothing specific behind this decline the stock's being dragged down with everything else so here's wrhere i came down if you own lilly and you're up nicely you need to take something off the table. but that's not a knock on the company. it's basic discipline. you need to ring the register on anything you own that's up substantially. if only so maybe you can buy that piece back if the stock ever comes down to a more enticing level of course if you don't already own lilly then you are being given a chance to start. just start a small position and then buy more on the way down. you've got to be gradual, though, because this market is brutal you see, there are two possible sins here. if you think ah, this is it, i've got the level, i'm drawing the line in the sand, i'm going all in, you're not paying anything attention to human frailty and the distinct possibility of making a mistake. that's why you never buy or sell all at once. but if you buy too little the worst that happens the stock shoots right back up and you have a small profit rather than a large one. i'm calling that a high-quality
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problem. now, ask yourself which is the worst mistake, buying lilly all at once only to watch it crater tomorrow or buying a little bit ahead of a rally i say a small gain beats a big loss any day of the week i like to say there's always a bull market somewhere i promise to try to find it just for you right here on "mad money." i'm jim cramer see you tomorrow where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪♪ who set out to solve a problem she faced as a mom. ♪ hi. i'm ginelle. i am the owner of cool wazoo. i'm here seeking $65,000 in exchange for 25% equity in my company.


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