One of the best ways investors can gain exposure to Jeff Bezos' new health care joint venture isn't through Amazon.com, Inc. AMZN's stock, CNBC's Jim Cramer said during his daily "Mad Money" show on Tuesday. It also isn't through Amazon's partners in the not-for-profit company, JPMorgan Chase & Co. JPM and Berkshire Hathaway Inc. BRK BRK. Rather, it is through Centene Corp CNC, Cramer said.
What You Need To Know
Bringing together Amazon's Bezos with JPMorgan's Jamie Dimon and Berkshire's Warren Buffett will create a new entity that is "very hard to compete with," especially when considering the not-for-profit nature of the business, Cramer said. The combined might of health care lobbyists is no match against "the most important man in finance, the most important man in retail and the best investor alive," he said.
Why It's Important
So why is it that Centene can survive in a radically different health care environment? Simply put, Centene is among the few companies in the space which have "survived every onslaught imaginable," Cramer said. But the company is also an expert at providing clients with high-quality care at the lowest possible cost while also making shareholders a "fortune," he said.
"You need a road warrior with a stock that you'll want to load up on into weakness if Amazon talks about this effort on its Thursday night conference call, or the nonprofit comes up with a name or a chief executive," Cramer said.
What's Next?
Investors are always encouraged to avoid buying any stock in a "blast zone on the first day of a sell-off," but those who "can't resist" should buy Centene, Cramer said.
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