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Cramer's Trust Trims Broadcom Stake While Increasing Exposure to Cardinal Health
Health Services · Medical/Nursing Services · cnbc · 2026-08-24
AVGO, CAH
Jim Cramer's Charitable Trust is selling half of its Broadcom position to lock in a 300% gain while rotating capital into Cardinal Health to capitalize on growth.
What Happened
Portfolio Rebalancing Strategy: Jim Cramer's Charitable Trust is executing a strategic shift by selling 165 shares of Broadcom to lock in a 323% profit. The move reduces the portfolio's exposure to the AI theme from 3% to 1.5% as a defensive measure against potential market volatility.
Regulatory and Political Headwinds: The decision to trim the Broadcom position stems from increasing political scrutiny regarding data center construction in states like Texas and Pennsylvania. Management anticipates that rhetoric against large-scale infrastructure projects will intensify as the midterm elections approach, potentially slowing industry investment.
Healthcare Sector Rotation: Capital raised from the Broadcom sale is being reallocated to Cardinal Health, with the trust purchasing 50 additional shares. This increase reflects confidence in the drug distributor's strong fiscal 2027 outlook, which projects adjusted earnings growth of 13% to 15%.
Valuation and Growth Outlook: Cardinal Health is currently viewed as an attractive investment, trading at approximately 18 times its projected earnings range. The trust has upgraded its rating on the stock to a 1, citing the company's consistent track record of delivering double-digit earnings growth despite recent market pullbacks.