Will Dell be Swell?

I had another recent stock pick profiled in Barron's (Brand, cash strength seen helping Dell - Barron's) this weekend. That is my 4th in the past few months (LINE, HIG and TBT before). Not getting my hopes up, but they do talk about that some one might even consider buying Dell as they're are so cheap right now (tons of cash) with a good brand name.

I read Warren Buffett's letter to shareholders (2008 ) with great interest this weekend. He admitted to some mistakes (buying COP at the peak this summer), but think BRK is well situated for the downturn. Both his insurance holdings (GEICO and Gen Re) along with utilities are largely recession-proof. It is something I have been considering lately, the fact that insurance is partly recession-proof, yet many insurers have been thrown out with the proverbial bathwater in the financial tsunami.

He was optimistic that things would eventually get better, but he clearly signaled his appetite for reducing risk, in that he sold some common stock (PG, COP and JNJ) to buy preferred shares of GS and GE. Of course he got a sweetheart deal, I'd sell my common stocks if I could get those terms.

I am waiting to see if the decision moose says to sell gold. It was not a great week for Gold, but it has still been a good call considering the general demise of the markets.