On 20th anniversary of Google’s IPO, Cramer talks long-term holding

On the 20th anniversary of GoogleIn his market debut, CNBC’s Jim Cramer looked back at the stock’s impressive rise and advised investors to stick with good companies for the long term, even if it means taking some short-term losses.

He first addressed Monday’s action on Wall Street, noting the market’s eight-day winning streak. Those kinds of gains can create a “difficult situation,” he said, and will likely be followed by declines. When the market looks overbought, investors don’t want to own too many stocks, but at the same time, they don’t want to miss out on long-term winners, he said.

Google stock has gained more than 7,700% since its IPO, and Cramer said many haven’t captured the full gain.

“Why? Because they called the rising register too often,” he continued. “When you’re dealing with really great companies, not indices, but the companies themselves that they’re praising, the real risk is that you panic and get shaken up. I challenge you to be able to handle it.”

Even though Cramer’s Charitable Trust has owned Google stock for at least a decade, Cramer said he doesn’t like everything about the company. He said he was unhappy with Google’s antitrust lawsuit and wondered whether its search business could be seriously challenged by new AI bots. However, Cramer pointed out that Google has made huge gains for trust. He suggested that he would stay in the portfolio because the company did “has been able to reinvent itself repeatedly,” pointing to the rapid growth of its cloud business.

Along with Google, other Big Tech names – such as Amazon, Apple, Microsoft and Nvidia — are subject to a “tug of war” dynamic, according to Cramer. He said some on Wall Street refuse to “accept the pain” when it comes to these stocks, selling them and then buying them again.

“The tech titans, the hyper-scalers, the colossus portion of the market, yes, the mega-stocks — they just bite you every time you sell,” he said. “But the short term says sell. To me, that means it’s time to go into the bunker and accept the acceptable losses you can’t avoid. These stocks are just too good to let go.”

Google did not immediately respond to a request for comment.

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Disclaimer CNBC Investing Club Charitable Trust owns shares of Alphabet, Amazon, Apple, Microsoft and Nvidia.