The Dow rallied, closing at its highest level of 2023, and Jim Cramer is kicking off the new week by breaking down the action. First, after being stumped on a question about MYR Group last week, Cramer's studied up on the company and is circling back to give you his take. Then, the cloud stocks have been a despised cohort in the past few years, but how should investors be approaching the names as they rebound from their lows? Cramer's digging deeper into the space. Plus, Cramer answers questions from members of the CNBC Investing Club.

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That's how I look at the difference between Larry Fink's BlackRock business and the flagship ARCA Innovation ETF run by Cathie Wood.

Now, if you aren't familiar with these 2, they represent 2 very different philosophies.

And it's worth exploring what sets them apart.

After a good day, where the Dow advanced 76 points, the S&P gained 0.39%, and the Nasdaq jumped

Cathie Wood tries to identify major long-term trends and offers a highly concentrated way to invest in them through her actively managed ETFs, the largest of which is the ARK Innovation Fund ETF.

It used to have $28 billion in assets, but now it's back down to about $9 billion.

Larry thinks BlackRock runs the largest fund group in the world with $9.4 trillion in assets.

And they had $190 billion in net infos just in the first half.

Cathie Wood was once hailed as the greatest investor in the world and she was absolutely the best stock picker of

Most individual investors have no idea who Larry Fink is.

But what matters here is the radical difference in their styles.

Wood hitches her start to a few stocks that she thinks have the greatest growth potential.

1 of her biggest calls was getting in Tesla very early.

Wood's strategy generated incredible returns when Wall Street loved growth.

But when growth went out of style, so did her performance.

Turns out it wasn't a strategy at all, only a tactic and a very risky tactic.

That next thing you know in 2021 she lost 24%.

Hey S&P finished the year up 27% NASDAQ rally 21% then in 2022 as she stuck with the same kind of stocks her leading fund fell unastounding

More than double the 32% decline in the NASDAQ and more than triple the 19% decline for the S&P 500.

That gave her tremendous outperformance in 2020, but tremendous underperformance in 2021 and 2022, making things worse.

She very visibly gave up on the stock of Nvidia when it was trading at $234 per share.

After sticking with it for years, she finally decided The valuation was too high.

She even came on our network and she trashed it.

She called another check the box AI company.

It turned out to be anything but just another check the box AI company.

Cathie Wood made a reputation picking stocks like Nvidia, yet she sold the latest and greatest before the run.

To me, that compounded the reputational risk of Wood's strategy with an element of cluelessness, frankly, about the fortunes of the companies she actually owned.

It called into question her stock picking ability, not just her worldview.

That's the danger of running an undiversified portfolio.

You have to be right every time or else your investors, they get obliterated.

In reality, nobody's that good to maintain this method over the long term, and they shouldn't tout themselves for doing so.

Wood's inability to manage money in a strategic way, relying on a few handpicked equities that she apparently doesn't follow as closely as I thought, has led to an investor exodus as her clothings like Coinbase, Zoom Video Communications, Roku, and block failed her in the last few years even as they've been strong in 2023.

Now it stands to reason my money managers had to recognize that money losing companies would see their stocks sell off in a situation with roaring inflation.

You know, only Tesla and Zoom were profitable going into this period.

Unlike Tesla, though, Zoom's trajectory rose and fell with COVID, plummeting from 588 at its highs to 72 and changed today as the epidemic peaked and subsided.

How do you not recognize that Zoom's unique nature is being commoditized by the likes of Microsoft, Cisco, Google, among others.

And look, I'm not saying Wood has lost her touch.

I'm saying her whole concentrated investing style is self defeating.

Sooner or later it will blow up in your face.

Larry Fink's Blackrock on the other hand, is the paradigmatic opposite of what Wood offers.

Diversification is at the core of the company.

It's at the core of the show, so you know it's going to be sympathetical to what I'm talking about.

Now, I had the opportunity to interview Larry on Friday with the rest of the Squawking the Street gang, and his understanding of the nature of investing, I find, is unparalleled.

He's a strategist, a broad thinker who attempts to guide you through all sorts of situations.

His conference call from last Friday was loaded with wisdom and strategisms that were, well, gems.

Through our diversification and strong performance, we can help clients better match their long-dated liabilities, achieve their operational objectives, and streamline the processes, end quote.

Now, while BlackRock's biggest group of investors comes under the rubric of institutional players.

He's using judgment that shows you how money management should be done.

I find it a learning, it's a great tutorial.

I've been at this for 42 years, it's a great tutorial.

Listen to this, quote, "'Investors are facing a complex landscape "'of competing fiscal and monetary policies "'with a number of structural forces shaping returns now and over the long term.

These forces include a fragmented geopolitical landscape, causing a rewiring of supply chains, a transition to a lower carbon economy, and the aging population in the developed world, all which are likely to be inflationary over time." End quote.

What goes around town now, inflation's crumbling?

Fink acknowledges that while some indicators show inflation slowing, As he told us in Squawk in the Street, the trillions of dollars President Biden got for infrastructure and the environment is, well, Biden's testing.

Biden's testing will be inflation no matter what, which could lead to continually higher interest rates longer than we thought.

Fink knows how to manage this risky environment.

As he lays it out, his clients are, quote, focused on outcomes in the manifest in a portfolio of blending active index, private markets, and cash, end quote.

A strategy to keep doing the best assets over time.

Not a tactic either to hit it out of the park or strike out.

Now I'm using these 2 different methods of running money to emphasize 1 thing.

Cathie Wood ran a very hot fund, maybe the hottest ever.

The reason why people are bailing it out in record numbers, even as her flagship fund has increased in value this year, is that they've learned their lesson.

A sophisticated attempt to manage your money requires someone like Blackrock to be your bedrock of your assets.

Now, it's fine, by the way, to include a wood in the mix, so to speak, as long as you recognize that she's a true gunner, even if she doesn't identify with that term.

Fink, on the other hand, offers you a menu that will lead you over time to the safest possible outcome with the least amount of risk.

But if you want to be able to have the best shot of increasing the value of your assets longer term, you need a diversified strategy that takes into account the vicissitudes of both the moment and the longer term.

1 that keeps you from being blown out as so many were from Woods Arc Innovation Fund.

I always try to teach people that they should have most of their money managed in a diversified way, like Larry describes, while also owning some stock picks that you like.

For instance, the investing club is an attempt to help you find stocks that can outperform the average mutual fund.

Many of you come to me because you want to manage some of your money yourself.

But the bottom line, what we don't want is your nest egg to be concentrated in just a few stocks that might be very wrong for the moment, causing you to give up on this entire wonderful asset class.

BlackRock's diversified style is the antidote to that fear.

A little warm down here in Monmouth County.

You know, my collar is all sweaty and stuff.

You know, a few months ago, we were talking about home builders and they were on a tear.

And I went to sectors, and then I clicked on industrials, and then I went to building products.

And I came upon a company, which I bought about 6 months ago, 5 or 6 months ago, called Builders First Choice, B-L-D-R.

And that's also on a tear, it's a double for me, which is unusual, really.

want to know your opinion of builders first choice.

You know what I've been thinking about builders first choice and floor and decor.

And I'm thinking, are they the next Home Depot and the next Lowe's.

And I have been working, working, working on this.

And all that's happened is they keep going up.

All I have to say, Orrin, is congratulations.

And I sat there on the sidelines trying to figure out if it was as good as Home Depot.

I'm 77 and I'm still buying and selling stocks.

Years ago I bought that Walgreens thinking it was a good company.

They seem to have been, got their ox in the ditch and don't know how to get it out.

So are they a whole or do we treat them as a buggy whip company and just tell them to go bye bye.

They do have Look they have levers they can pull.

But you know what the problem with Walgreens Boots Alliance is?

They are the ultimate brick and mortar in an era when Amazon's got them crushed and theft which they don't talk about enough is just crushing their performance.

then what I would say is sell, sell, sell.

Look, if you want the best shot at long-term wealth generation, I think you have to stay diversified.

So you can prepare for whatever the market throws your way.

I mean it when I say we have the smartest audience in television, you and last week you called in asking about MYR group.

So I'm turning my homework on the stock to see if we can spot a winner in the infrastructure group.

Then, while everyone has been laser focused on the Magnificent 7, there is another co-owner of stocks that's actually quietly rallying just as well, if not better.

I'll reveal what it is and how you should interpret the action.

1 of my favorite parts of this show is hearing directly from you.

So we're taking some questions from the CBC Investing Club members that we didn't get to the other day when we did our club meeting.

Send Jim an email to madmoney at CNBC.com or give us a call at 1-800-743-CNBC.

I'm Morgan Brennan, host of CNBC's Closing Bell Overtime and Manifest Space.

With rocket launches marking new milestones, the new space race is on.

Make sure to listen to Manifest Space with me, Morgan Brennan, by following wherever you get your podcasts.

I've said it before and I'll happily say it again.

We have the smartest viewers in perhaps all cable television.

They prove it time and time again, especially when they call him with an off the beaten path stock during the lightning round.

You know it happened not once but twice during last Thursday's lightning round.

When I was just about a pair of infrastructure related names, I really wasn't familiar with, but sure wish that I had them because they've been big winners of late.

As all the federal infrastructure spending authorized in 2021, finally starts to kick in.

There'll be more of these, but I gotta drill down tonight.

I want to cover 1 of them in detail and will do the other 1 later in the week if we got time seeing George.

In Massachusetts, called and asked about a company called MYR Group and I told him I needed to do more homework.

But after kicking the tires on this 1 over the weekend, I think it upside, maybe much more upside.

And we're grateful to get some time to explain why we are so excited about this 1.

You'll understand some of the broader themes, but we're gonna do more than that on the show.

MYR Group is a $2.4 billion holding company that consists of 13 different specialized contractors focused on electrical construction.

They primarily handle the construction of transmission and distribution lines for electric utilities, commercial customers, and the industrial market.

The business represents about 58% of the company's revenues in 2022.

The other 42% came from MYR Group's commercial and industrial business, which installs and maintains electrical wiring in commercial or industrial buildings, as well as traffic and rail systems.

Oh, man, these are areas that are just begging for help, and this company does it.

Now, it's not really as much a company as it is a bunch of companies, because the company's current structure, it's a roll up of these specialized electrical equipment contractors, dates back the mid-1990s when 3 of those contractors merged.

Though history buffs might be interested to hear that the company's roots date back to 1891 when 1 of these specialty contractors, L.E.

Myers, was founded by Lewis Edward Myers.

He briefly worked for Thomas Edison as a salesman before striking out on his own.

MYR group was publicly traded from 1996 to 2000.

Then it got acquired, but the market took it public again in 2008.

For more than a decade after that, the stock has slowly grinded higher over time, very, very slowly.

Over the past 3 years, though, whoa, MYR groups caught fire.

Because MYR has had fantastic earnings growth.

I think we might get another opportunity.

For digging the story, though, I would have assumed that the stocks recent strength was solely related to investors anticipating benefits from all the recent federal spending packages and that's certainly a factor.

I mean there was 65 billion in the bipartisan infrastructure bill earmarked for building thousands of miles of new electoral transmission lines to facilitate the expansion of renewable energy.

Then there was another $3 billion for transmission line construction, the Inflation Reduction Act.

MYR Group stands a good chance of winning some of those contracts.

This stock roared higher in the run-up of the passage of the infrastructure bill way back in 2021.

Then it pulled back hard in late 2021 early 2022 after that, my group was kind of stuck in a pretty narrow trading range.

It wasn't until earlier this year that the stock started worrying again.

Because even without the infrastructure package, MYR was already benefiting from powerful secular themes, like the rise of renewables, the degradation of our power grid over time.

You know it's not as good as it used to be.

Regardless of what Washington does, companies keep building out big wind and solar farms in remote locations, which means they need wiring to take that power where it is actually needed.

Even if they're talking about a solar panel on the roofs of some factories, you need wiring to get the electricity from the panels to somewhere where it's used.

At the same time, These guys have made a fortune from the rise of the data center.

Yes, these warehouses full of servers require miles of wiring in each building.

MIRs even talked about how health care facilities are a growth area, which makes sense given that modern hospitals are increasingly digitized.

I love these companies that no 1 really knows of that have got all these great themes to them.

Now the recent rally kicked off in late February when NYR Group reported a much better than expected quarter.

Not that many analysts covered this thing up, but it was a huge sales and earning speed.

Another very large upside surprise on both the top and bottom line, but they are not promotional.

When you look at their website, you'd think that they're not even doing that well.

On the company's April conference call, management explained that they've benefited enormously from the growth of renewable energy infrastructure.

But 1 of the analysts asked about the anticipating impact of the coming federal spending programs, which are expected to begin in earnest later this year.

NYR Group CEO Richard Schwartz had a lot to say in response.

He explained that with all the infrastructure spending coming, customers are coming to them much earlier than usual, just because they know they need to plan far in advance if they want to have all the necessary labor materials lined up.

That gives the company much greater visibility into its future sales and earnings and Wall Street loves visibility.

You're probably wondering how can do they have enough people?

They've 8000 people work for them, But you know this is going to be the hardest thing to find more labor.

I don't think they'll have a problem with that.

In other words, the federal spending has helped them.

But mainly because this encourage existing customers to book business with NYR group much earlier than they ordinarily be doing it.

But the upside here is that all of this company's recent success has come without the flood of federal dollars, which again should start flowing later this year as I keep telling you these orders and we said this with Caterpillar for the club.

I always talk about Caterpillar is not even seeing the orders yet.

That's all 2024 in the last quarter of this year, and that is why, despite the big gains in my group, I think the stock can continue to work.

The success of data has come mostly because of themes other than the federal investments in our nation's grid.

Not a lot of analysts covered, but they say it's going to earn

per share this year and then 687 next year.

Wow, but given the context, those estimates actually look reasonable to me at $146 and change the stock trades at just 21 times that year's numbers, which looks good to me considering that there's great growth ahead and it doesn't factor in the next wave of government spending.

So let me give you the bottom line about this gem.

The only thing I don't like here is that I didn't discover this story earlier when I could have helped you more.

But luckily our sharp viewers helped us out and put MYR Group on our radar.

Given that the stock's rally today has been driven by catalysts separate from the coming wave of government spending, I don't think you've totally missed the movie here.

I wouldn't expect NYR to rally another 300% over the next 3 years, but I do think it's got more upside as the infrastructure spending finally kicks in.

I say congratulations, George, for bringing this 1 to our attention.

Coming up, is it time to move past the Magnificent 7?

When it comes to your next hot tech investment, Kramer's looking to the clouds.

There's investing news that impacts your money and your portfolio.

And there's business news that impacts your life.

From Wall Street to K Street and Main Street, the markets may close, your money never stops.

Last Call is really about spotting tomorrow's opportunities tonight.

Follow and listen to CNBC's Last Call on your favorite podcast platform today.

Everybody wants to talk about how the magnificent 7 have been pushing this entire market higher.

There's a whole other cohort of less visible tech stocks that have been working here, working like crazy.

I'm talking about the once loathed enterprise software players.

Ever since the market bottomed more than 10 months ago, these enterprise software stocks have come roaring back.

But you see, you don't hear about them as often, precisely because they're not consumer focused.

People only interact with this stuff at work if they interact with it at all.

Historically, money managers have loved the enterprise software space because it's just a fantastic place to find the real growth stocks.

They're always looking for the next sales force, wouldn't you?

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Homework: MYRG, Cloud Comeback & Investing Club Questions 7/17/23