Jim Cramer Says He Was Wrong for Selling Johnson & Johnson for the Charitable Trust

Johnson & Johnson (NYSE:JNJ) is one of the stocks on Jim Cramer’s game plan for this week. Cramer explained why he sold the stock for the Charitable Trust, as he commented:

"Wednesday morning brings two stocks that are hard to keep down. Johnson & Johnson and Charles Schwab. J&J has become a pure play on pharma by spinning off its orthopedics division. That’s smart because orthopedics happens to be a commoditized business. Meanwhile, its pharma business has some of the best drugs in the pipe, and they really shine without the knee, hip, and joint business holding them back. J&J still has a talc overhang of people willing to sue the company for all sorts of cancers allegedly caused by asbestos in their old baby powder. Now, I’m not saying these lawsuits don’t matter; that would be heartless. I am saying that they no longer matter to the stock, now that J&J’s fighting each individual claim, which can be daunting to the plaintiff’s bar. I was intimidated by the lawsuits myself, and sold it for the investing club. That was wrong. I regret listening to the Circe sirens."

Johnson & Johnson (NYSE:JNJ) develops and sells healthcare products, including pharmaceuticals and medical technologies, with treatments in immunology, oncology, neuroscience, cardiovascular care, and infectious diseases.

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Disclosure: None. This article is originally published at Insider Monkey.