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Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- Stop moaning about poor earnings, Jim Cramer commanded his Mad Money viewers Friday. There are still plenty of companies doing well this quarter and investors need to take advantage of the opportunities when they see them. Cramer's game plan for next week's trading starts on Monday with the quintessential Apple , a stock Cramer owns for his charitable trust, Action Alerts PLUS. After rising 15% over the past three months, he urges you to continue to own, not trade, Apple. Must Read: 5 Stocks Warren Buffett Is Selling Next, on Tuesday, Cramer will be watching Bristol-Myers Squibb , along with UPS , T-Mobile , Kraft Foods and Twitter , another Action Alerts PLUS name. Cramer is bullish on all these names, except UPS, where he said another bad quarter would send that company to his wall of shame. For Wednesday, Cramer's attention turns to Fiat Chrysler , where he expects a strong quarter, Spirit Airlines , his favorite among the group, GrubHub , an out-of-favor stock he thinks could surprise to the upside, and Marriott , another solid performer. Thursday brings earnings from just Exxon Mobil and Columbia Sportswear . Cramer remains a fan of the stealth tech play that is Columbia, and is also curious to hear Exxon's take on the future of oil prices. Finally, on Friday, CVS Health reports earnings. Cramer said buying call options would be a good way to play this drugstore giant. Also on Friday is Chevron , a stock investors can use to compare and contrast against Exxon's world view. Executive Decision: David Demshur For his "Executive Decision" segment, Cramer welcomed David Demshur, chairman, president and CEO of Core Labs , the scientist of the oil patch with a stock that's up 40% in just the past three months. Demshur explained that when it comes to Core Labs' reservoir mapping services, these are multi-year, multi-billion-dollar projects that don't simply go away based on the short-term fluctuations in oil prices. That's how Core Labs continues to post strong, consistent earnings. Turning to U.S. oil production, Demshur said the current output of 9.2 million barrels a day will likely fall below nine million barrels by the end of 2015, with much of that decline stemming from shale wells, which deplete more rapidly than traditional wells. That will lead to a V-shaped recovery for oil prices, Demshur predicted, with West Texas oil prices returning to $70 a barrel. Cramer said if Demshur is bullish on oil, then investors should be, too. Must Read: Microsoft's Strong Quarter Led by the Cloud -- 3 Biggest Takeaways Everything Going Right It's a rare event when everything goes right for multiple companies on a single day, but that's exactly what happened when Amazon.com , Microsoft , Google and Starbucks , the latter two Action Alerts PLUS holdings, reported spectacular earnings that surprised even the most bullish of investors on Wall Street. In the case of Amazon, which has been historically vague on about its operations, the company offered investors some clarity on its Web Services division, which apparently is growing like a weed. The company also cited positives in India and China, two markets that had seen a ton of investment, but little in the way of profits. As for Google, the company proved that it's actually a lot more profitable than many investors realized, meaning they don't have to hope for the monetization of YouTube after all. When Microsoft blew its quarter last time around, expectations were universally reset lower, making this time around an easy blow out. The company offered clear, concise guidance and investors cheered. Finally, there was Starbucks, a company that astonished even Cramer with how strong its earnings can be. Executive Decision: David Kemper In his second "Executive Decision" segment, Cramer sat down with David Kemper, chairman and CEO of Commerce Bancshares , a regional bank serving the midwest that is posting solid gains as it awaits higher interest rates from the Federal Reserve. Kemper said the business environment is good in the areas the bank serves, with lower energy prices helping to triple loan growth in recent months. While others are pulling out of markets such as Oklahoma and Colorado, Commerce is expanding operations. Kemper also said that Commerce has a strong core deposit base, along with the size and agility to offer customers a better value proposition than the competition. When asked about competition, particularly from up-and-coming online-only lenders, Kemper said he's skeptical of these upstarts because it's hard to be in tune with your customers without having face-to-face interactions. Must Read: 3 Big Tech Companies to Add to Your Portfolio Right Now Lightning Round In the Lightning Round, Cramer was bullish on Six Flags and Whole Foods Markets . Cramer was bearish on Peabody Energy , Royal Dutch Shell , Netflix , SeaWorld Entertainment and Frontier Communications . Executive Decision: Lars Bjork In a third "Executive Decision" segment, Cramer sat down with Lars Bjork, CEO of QLik Technologies , makers of user-driven business intelligence products. Shares of Qlik rose 4.8% on the day to new 52-week highs and are up 25% since Cramer last checked in with the company 13 months ago. Bjork explained that Qlik has a relentless focus on making products that are easy to use. If they're not easy to use, people won't use them, he continued, and that's why Qlik can beat companies like IBM nine times out of 10. In addition to selling to customers directly, Qlik also employs over 1,700 partners in 100 countries around the globe to help get their products in the hands of customers. That's why even in Europe, sales are strong. There's no better time to optimize your company than when things are slow, Bjork added. Cramer reiterated his buy recommendation on Qlik. Must Read: Gold to $5,000 in Five Years? Charts Say It Could Happen To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.Click to view a price quote on QLIK. Click to research the Computer Software & Services industry.
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. This program last aired Dec. 30, 2014. NEW YORK (TheStreet) -- What makes a good investor? Knowing to expect the unexpected, Jim Cramer said on Mad Money as he opened his investing tool box to help viewers become better investors. Diversification is still the only way to invest, said Cramer, admitting he occasionally gets it wrong. Sometimes his stock picks just simply don't work out. That's investing. Any investor putting together an investing portfolio needs to be prepared, said Cramer, because sooner or later something won't work out. Must Read: 10 Stocks Carl Icahn Is Buying But how should investors prepare for the next market catastrophe or stock pick gone bad? Not by being bearish but by being smart, Cramer said. Being a bear means shorting stocks, hoping they go down. That's a valid investing strategy but it limits one's profit potential since the lowest a stock can go is zero. However, Cramer said, compare that to bullish investing, betting that stocks go higher. Their potential profits are limitless, he said. Investors who invested in Action Alerts PLUS holding Apple in 2009, for example, realized a 580% gain over the next three years. Beyond having a positive outlook, Cramer said the most important rule to managing your money is diversification. That means not having all your eggs in one sector basket. A portfolio with five stocks must have only one technology company, one health care name, one energy company, one industrial, etc. Two or three of a kind is a quick way to get caught off guard, so no more than 20% of a portfolio can be in a single sector. Being diversified is more than just investing in different sectors, however. Cramer said the new rules of diversification also require owning some gold in your portfolio along with a high-yielding dividend stock, a growth stock, a speculative stock and one that's firmly rooted in a healthy geography. Check the Dividends Cramer said the most important category of stocks that must be in a diversified portfolio is a high-yielding dividend stock. He said that every portfolio needs at least one, possibly more, dividend payers. Must Read: 3 Mid-Cap Energy Companies You Should Add to Your Portfolio While dividend stocks might not seem sexy, dividends make money. In fact, nearly 40% of the total gains from the S&P 500 since 1926 have come in the form of dividends. Over the past decade, that percentage is even higher, he said. Dividends aren't merely safety plays for retirees and cautious investors, said Cramer. They are a smart strategy for making money. He explained that as a stock price falls, its dividend yield increases, which, in turn, makes it more attractive to investors. Stocks that hit a 4% yield represent terrific long-term bargains, he noted, which is why stocks typically stop going down once they hit 4%. But beyond making money, Cramer said dividends -- and especially dividend raises -- are management's way of telling investors that things are going well at a company. A solid, steady dividend that gets raised regularly is a hallmark of a company that's stable and doing sell. Not all dividends are created equal, however, cautioned Cramer. He said dividend yields that are not sustainable are red flags. Just look at what happened to Radio Shack and supermarket SuperValu in early 2012 for a lesson in dividends gone awry. Cramer said a company's earnings per share should be at least twice that of its dividend payout to be considered safe. For companies with high capital needs, like telcos, he said investors can look at the cash flow as another metric to see whether the dividend may be in jeopardy. Secular Growth Stocks Next up in Cramer's toolbox of investing tips: secular growth stocks. Stocks like AAP holdings Apple, Google and Facebook all fit this category, said Cramer. So do many biotech names including Regeneron and Celgene . Growth stocks will hit new high after new high as long as their growth continues. That's because stock prices represent what investors are willing to pay for future earnings, he said. So as a company's earnings grow, so, too, does its share price. Cramer said as a rule, he's willing to pay up to two times a company's growth rate. So for a company growing 20% a year, he's willing to pay up to 40 times their earnings. Growth stocks typically won't trade below one time their growth rate unless something is going wrong. Must Read: Pacific Trade Agreement Is Nothing More Than a Jobs Killer for U.S. Cramer told investors to pay close attention to the direction of the earnings estimates anytime they're investing in growth names. "When you're playing with momentum, you're playing with fire," Cramer continued. When earnings have momentum, companies can see their stock double in just a year, but if the earnings begin to slow, they will fall sharply -- as Chipotle Mexican Grill saw in July 2012 when shares tumbled 100 points on the mere suggestion that the company may be vulnerable to a weakening U.S. economy. Staying Speculative Every portfolio also needs something to keep you interested, said Cramer, and that means at least one speculative stock. While speculation has become a dirty word on Wall Street, something most financial advisers will tell you to avoid, Cramer said it's important to stay engaged with your stocks and to continue to do your homework. Otherwise, investing will become no more profitable than gambling. To speculate wisely, Cramer said investors need to use the right rules and maintain their discipline. Speculation can provide investors with enormous gains, he said, but if done incorrectly can yield gut-wrenching losses. When it comes to speculating, most investors look towards stocks under $10 a share. Cramer said there are two kinds of stocks in this category -- those with broken companies and those with merely broken stocks that have been left for dead by money mangers that aren't allowed to invest in things under $5 a shares. Investors can take great advantage of the latter, said Cramer. Two great examples of "left for dead" stocks include Sprint , when it traded at just $2 a share, or Rite Aid which traded as low as $3 a share. During the height of the great recession both companies were hated by Wall Street. But beneath all of the skepticism they were solid companies, said Cramer, which is why both companies saw their shares rebound nicely. These deals don't come around often, however. More often than not, stocks under $10 a share are tiny names that you've probably never heard of, Cramer said. These may be fads or companies that are mere shells of their former selves. But that doesn't mean that there aren't diamonds in the rough out there if you know where to look. Must Read: Large U.S. Companies Should Stop Relying on Weak Dollar for Strong Profits U.S.A. All the Way Back in the old days, part of diversification used to mean owning a foreign stock, Cramer told viewers, one with exposure to the red-hot emerging markets. But with fiasco in Europe and a slowdown in China crushing all things international, the tables have turned, making stocks firmly rooted here in the U.S. pretty good by comparison. That's why part of the new diversification requires one stock that offers domestic security, anything that is U.S.A. all the way. Cramer said that could be a phone company such as AT&T or Verizon or a utility such as Consolidated Edison or Duke Energy , all of which are also high-yielders. But investors could also choose a regional to national restaurant chain such as Popeye's Louisiana Kitchen or a real estate investment trust such as Federal Realty Trust or Tanger Factory Outlets . Cramer said his bottom line is that investors need to be thinking about all-American companies for the foreseeable future. Remember the Gold Cramer's last tip for investors was to always include some gold in their portfolios. Gold, he said, has a special property that makes it precious. Gold goes up when everything else is going down. It's insurance against economic uncertainty, geopolitical chaos and inflation. Cramer said to think of gold as stock insurance, just as valuable as homeowner's or auto insurance. Gold has been the best-performing asset class year after year for the past decade, racking up gains consistently at a time when just about everything else has been disappointing. Owning gold is not just about the upside, however -- it's also about minimizing the downside. Cramer once again heralded the SPDR Gold Shares exchange-traded fund as his favorite way to invest in gold. For investors who can afford to buy larger quantities of gold, owning gold bullion or gold coins is also a wise choice, he added. But beware of the gold mining stocks, Cramer cautioned. While these companies benefit from the increasing scarcity of the precious metal, they also encompass countless ways to screw things up, costing investors dearly. "If you want exposure to gold," Cramer concluded, "do the easy thing and buy the GLD." Must Read: 5 Stocks Warren Buffett Is Selling To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.Click to view a price quote on AAPL. Click to research the Consumer Durables industry.