Carne Capital

During a recent interview on February, 27th on CNBC Warren Buffett described a phone call he got from the late Apple CEO Steve Jobs. Mr. Buffett gave this account, "It was an interesting conversation because I hadnt talked to him in a long time. He said, Weve got all this cash. What should we do with it? So we went over the alternatives. It was kind of interesting." Mr. Buffett often comments in his annual letters about the options for deploying cash and he did again in this interview.

As the market continues to sell off, these are names to keep an eye on. The performance of high dividend paying stocks can be expected to remain volatile for the near future, both to the upside and downside. The selling may continue to feed on itself, but if a deal on dividend tax rates can be reached these names may at least revert to the mean and outperform the broad market.