CNBC's Jim Cramer told investors they should pay close attention to what CEOs say about their companies.
If CEOs say something negative, Cramer said its best to take their word for it instead of searching for justifications to keep owning the stock.
Chief executives rarely admit when something is wrong, so when one actually preannounces a shortfall, Cramer suggests waiting at least 30 days before thinking about buying stock.
At the same time, Cramer said he knows investors need to scrutinize everything CEOs say and take their commentary with a grain of salt.
"Don't get me wrong, you can't just take everything that comes out of a CEO's mouth as gospel," Cramer said.
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CNBC's Jim Cramer, Cramer, it's, they've, Maya Angelou's, —