CNBC's Jim Cramer on Monday said that the fundamentals can sometimes hold investors back from buying stocks that, in hindsight, are obvious success stories, and used cult stocks as an example.
"But unlike meme stocks, cult stocks have such a loyal shareholder base that they can trade independently of the business for years and years."
Cramer said that the most obvious example of a cult stock is Tesla .
He also named two other companies as examples of cult stocks, Netflix and Palantir .
"Sometimes conventional methods of valuation are completely worthless, and you need to embrace the dynamics of cult stocks.
Persons:
CNBC's Jim Cramer, Cramer, didn't, Elon Musk's, Donald Trump, Musk, Palantir, Alex Karp's
Organizations:
Trump, Netflix
Locations:
EVs