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Stock Strategist

Why Dell Is Part of Our Ultimate Portfolio

An interview with our Dell analyst highlights the firm's long-term strength.

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I regularly follow several well-established investment managers, hoping to glean new insight for my portfolio by tracking both their holdings and investment themes. The problem with this approach historically has been assessing the real-time attractiveness of each name in these managers' respective portfolios, given that their filings are always somewhat delayed. However, by taking a cross-section of these portfolios with Morningstar's proprietary metrics and rating for stocks, I've been able to uncover current investment ideas that otherwise may have not been immediately apparent. (Note: Our trading policy prohibits us from trading stocks based on information gleaned from manager interviews.)

We've created a portfolio based on this methodology, which we introduced as The Ultimate Stock-Picker's Portfolio in a recent article. One of the more controversial names in the Ultimate Stock-Picker's Portfolio has been  Dell (DELL), which has proved to be a value trap for some investors over the past year. We've shared in some of this pain, as the stock has been relatively flat for the Ultimate Stock-Picker's Portfolio since its inception last year. I thought it would be a good time to sit down with our Dell analyst, Rick Hanna, to get a sense of what has happened to the company and what the future might hold.

Justin Fuller has a position in the following securities mentioned above: DELL. Find out about Morningstar’s editorial policies.

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