Cramer defended individual stock picking using Apple, Microsoft and Meta as examples — CNBC Top News

Jim Cramer wrote in a column for CNBC Top News that individual stock picking should not automatically be considered speculation. As examples of companies understandable to retail investors, he named Apple, Microsoft and Meta Platforms.

The columnist spoke out against what he considers a dismissive attitude toward retail investors who choose individual securities instead of investing exclusively in index funds. Cramer cited an estimate according to which the share of individuals in total stock trading volume has risen from 10% to 20% over recent decades.

Apple and Berkshire Hathaway

Cramer recalled that Berkshire Hathaway began building a significant position in Apple in 2016. In his view, the widespread use of the iPhone, high customer satisfaction and Apple’s ability to develop a scalable business were factors that a retail investor could also have noticed.

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The author also noted Apple’s highly profitable services business. He wrote that Tim Cook moved to the position of executive chairman of the board on September 1, while John Ternus, who had previously led the company’s hardware division, became chief executive officer.

Microsoft and Meta

According to Cramer, Microsoft’s strong position is ensured by the widespread use of Windows and the Office suite in the corporate sector, the development of Azure and investments in artificial intelligence. He also mentioned the $26 billion acquisition of LinkedIn, completed in December 2016, and Activision Blizzard for $69 billion, whose deal was closed in October 2023.

Speaking about Meta Platforms, Cramer pointed to the company’s advertising business, Threads, WhatsApp and the ambition of its head, Mark Zuckerberg, to compete in artificial intelligence. The columnist believes that, when selecting stocks independently, investors should follow the development of companies’ businesses rather than focus solely on short-term price fluctuations.