Big Tech stocks are better repositories of wealth than bonds, says Jim Cramer

CNBC "Mad Money" host Jim Cramer said that Big Tech stocks like Apple, Alphabet, or Amazon are much better repositories of wealth than bonds, owing to their strong balance sheets and financial performance.

The TV personality and former hedge fund manager made that claim in a recent episode of the CNBC show, and used the Big Tech stocks as a example of why investors may need to "re-think [their] notions about stocks versus bonds."

"This year we're witnessing the passing of the torch. Bonds were the safest assets back in '82, back when treasuries yield double digits," Cramer said. "Now they're risky assets, maybe riskier, riskier than anyone thinks."

Cramer said that for many major companies that he follows, the equity side is much safer than bonds. That translates to big tech stocks like Facebook, Apple, Amazon and Microsoft being a "much safer repository for wealth."

Although he cautioned that this isn't the case for all companies, he said that the Big Tech stocks are sitting on more cash than most countries. Microsoft has $138 billion, Alphabet has $133 billion, and Apple has $192 billion.

"They survived The Great Recession, and what happened? They came out stronger. The countries didn't," Cramer said. "In the great pandemic, they're not just thriving but they are actually putting up unbelievable numbers."

Cramer added that Facebook, Apple, Amazon, and Microsoft are the "Fort Knoxes of our era."

Although the "Mad Money" host admitted that this is a brand new thesis, he said that the real lesson of the era is that "stocks are the ones that don't need government help here."

"That means if you're a young, wet-behind-the-ears broker at Goldman Sachs, I would tell you to forget all those bond ideas," Cramer concluded. "Just tell your clients to buy the stocks of terrific companies with nation state-sized balance sheets. You'll do much better with a heck of a lot less long-term risk and more dividends."