Jim Cramer’s Charitable Trust Increases Stake in Cardinal Health and Upgrades Goldman Sachs

Jim Cramer's Charitable Trust has announced the purchase of 50 additional shares of Cardinal Health, bringing its total holdings to 400 shares. This acquisition increases the company's weighting in the portfolio from approximately 2% to 2.25%. The decision to invest in Cardinal Health comes amid a broader market downturn, where the company’s stock has shown resilience despite recent volatility. Cramer believes that the recent pullback in Cardinal Health's share price was unwarranted, attributing its stability to a lack of sensitivity to rising oil prices, economic fluctuations, and geopolitical tensions.

CNBC

In contrast, the financial sector has faced significant challenges, with Goldman Sachs experiencing a decline of about 6% year-to-date and a 16% drop from its peak in January. Cramer’s investment thesis for Goldman Sachs hinges on anticipated activity in mergers and acquisitions (M&A) and initial public offerings (IPOs). However, he acknowledges that ongoing market volatility poses risks to this outlook. Despite these challenges, Cramer has upgraded Goldman Sachs from a hold-equivalent rating to a buy-equivalent rating, citing the bank's dividend yield of approximately 2% and its consistent share buyback program as positive factors.

CNBC

Cramer emphasized the importance of a measured approach to investing, stating, "We may not have started this new position at the best level... but the volatility this week is a great lesson on why we never do all our buying all at once." This reflects a strategy of gradually increasing positions to manage risk effectively.

CNBC

While Cramer remains optimistic about both Cardinal Health and Goldman Sachs, some analysts express caution regarding the financial sector's performance amid rising oil prices and weak job data. The potential for reduced M&A and IPO activity due to market instability raises concerns about the sustainability of Goldman Sachs' growth prospects.

CNBC

• “We like to slowly scale into position over time, ideally working our average cost basis lower.” — Jim Cramer, Charitable Trust

CNBC

• “Goldman's dividend now yields about 2%, and there's a consistent share buyback program here to help pay us in case of a push out.” — Jim Cramer, Charitable Trust

CNBC

As the market continues to fluctuate, Cramer’s Charitable Trust will monitor both Cardinal Health and Goldman Sachs closely, adjusting its investment strategy as necessary based on market conditions and company performance. The ongoing developments in the financial sector, particularly regarding M&A and IPO activity, will be critical in shaping future investment decisions.

CNBC