Jim Cramer says not all stocks have trouble starting 2022

CNBC’s Jim Cramer said Wednesday he believes it’s possible for investors to build a successful portfolio despite Wall Street’s rocky start to 2022.

“Real companies doing real things with great brand loyalty are what will triumph in this environment — you just have to know where to look,” the ‘Mad Money’ host said after the Nasdaq Composite , tech-heavy, closed Wednesday’s session in correction territory, meaning it’s down more than 10% from its most recent high, which was recorded in November.

The S&P 500 fell nearly 1% on Wednesday, bringing its year-to-date decline to 4.9%. The blue-chip Dow Jones Industrial Average also fell nearly 1%, taking its losses to 3.6% so far in 2022.

While Cramer said there are real headwinds such as inflation fears hanging over the stock market, investors need to look beyond the big picture and focus on the characteristics of successful companies.

“It’s not the broken supply chain, it’s who can triumph over the broken supply chain,” Cramer said. “It’s not the raw cost hikes, it’s who has the brands that allow them to pass those costs on to customers. It’s not the inevitable Fed rate hikes, it’s who can thrive in a higher interest rate environment.”

For example, Cramer cited Procter & Gamble as an example. The consumer products giant saw its stock climb 3.36% on Wednesday after reporting better-than-expected second-quarter results.

“Even if he had $2.8 billion in headwinds on raw materials, freight and currency, he could pass those costs on to you, the customer, without batting an eyelid, because not all brands are created equal. Procter is created better,” he said.

Bank of America, which beat quarterly earnings estimates Wednesday morning, is another example of the type of business investors should consider owning in the current environment, Cramer said. “It’s an institution that thrives on rate hikes. So when you see the numbers it released today, I think it deserved to rally a lot more than it did, frankly, because 2022 could be the year of Bank of America.”

Register now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

Garland K. Long