Jim Cramer sees one crucial element of an investor's portfolio that is often underestimated—execution. At the end of the day, it cannot be overlooked. Good leadership is what drives both the company and the stock. And, unfortunately, Cramer is seeing this element disregarded more and more each day.
"We don't have enough respect for execution. Nobody talks about it, about the sheer power of execution, of a management team fulfilling unmet needs or changing course during changing times. Yet, it's a huge part of this terrific, long-term rally," the "Mad Money" host said.
…there is Kroger, which was up almost 7 percent when it beat all expectations in earnings.
"I've been pounding the table on this Kroger story ever since I spent some time with management and recognized how competitive they are and how they're leveraging their scale to wrench the profits from the food companies that supply them," Cramer added.
Cramer loves the company's strategy overall and has taken note that it has taken share from everyone as the nation's second largest supermarket chain. That means that Wal-Mart, Target and even Whole Foods need to watch their backs.
What struck Cramer as the most innovative approach with Kroger was how the natural and organic foods were integrated right into the other options in its aisles. They had more natural and organic produce on display, and they were beautiful. They had fabulous customer service, too.
That's what Cramer calls execution, and this is why he still considers this stock inexpensive. Bubble? What bubble?
Kroger closed at $74.31 today up over 70% versus this time last year.
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