michael farr, i'll start with you.safe to pick up good yields right now >> you know, kelly, when you see a good dividend, that can be a great thing. when you see a really big dividend, that can be a bit of a warning. there's a reason that the people are paying a whole lot more than the u.s. treasury. u.s. treasury right now, ten-year, .7 so if you can get a couple of points, couple in dividend , we think that's good. i like the blue chips, pepsi, proctor and gamble, johnson a& johnson. close to 3% dividend out of those and i'd rather be with those balance sheets than some companies that are going to struggle in order to maintain cash flow and find way to pay those dividend holders >> and steve, michael just mentioned names that have been b relatively steady. everything is relatively speaking a lot of people are concerned not just about the dif dend going away, but also the yield is so high because the yield declined so much or may do so again in the future. >> right so i agree with all of michael's picks. i always like

. >> michael farr, you sold out of exxon. still hold chevron which cramer loves he thinks it's going to 100 bucks. why get out of exxon >> it was kind of a small rounding position for us, judge. it was probably .8% and a laggard. we were very happy kind of owning chevron and continuing to own it we don't want to expand in the space. we think that the return to demand is going to be slow and we are not convinced that there isn't still an enormous amount of supply to make profits very difficult for this industry. so chevron, a terrific balance sheet, very diversified company and a pretty good dividend at these levels, too, seems to be a more comfortable place to be. >> finish up on the banks. right? last week it was upgraded of jpmorgan and morgan stanley. today goldman sachs to a buy you added to wells fargo. >> yeah. >> tell me why. >> so wells fargo is a huge laggard and i've owned it all the way and now yields 8% and it is well capitalized. their liquidity cover ratio 121% the regulators expect 100% the common equity tier 1

. >> as buffet sits on the sidelines this time around, let's bring in michael farr and rachel aiken michael, if i interpret mr. buffet correctly, it's that he's saying he can't identify any value right now. why should that surprise us? value is almost hard to perceive when you don't know what the underlying prospects of the company are. >> i think you're right. his comments echoed some real leadership geoff gundlach have been saying hang on. we're waiting for this economy to work its way out and while there is good news on the disease. there's good news there. we have to invest based on numbers. the numbers seem to be getting worse. i watched him for decades. you wait the hear for the buffet news that he's been adding to this stock or that stock people used to say ta poor old warren buffet, he doesn't get tech anymore maybe he's past his prime because these dot coms are the wave of the future he usually gets the last laugh i figure he does this time it's a good word of caution. take your time and if you're going the buy, be opportunistic and make sure there's some real there there to get yo