Recap of Sat., Nov. 1:Altria and Kodak

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David Asman: Some big name mutual funds are under investigation for fraud! That means the "safe" funds that you thought you bought, could actually be stealing your money! Are there any funds out there that you can trust with your cash?

Mike Ozanian, senior editor: I don't think this is a widespread problem we have here. I think its pretty narrowly focused, the cheats are on the run. And the fund I like is the Vanguard Index 500 fund (VFINX), which basically mimics the stocks in the S&P 500. You won't get incredibly wealthy from it, but you won't get burned, either. No Load, you go in for free and the expense is just pennies on the dollar.

Matt Schifrin, senior editor: I agree that this investigation is a little overblown. I will give you two funds that are actually under investigation! They're excellent funds, I like Janus Special Equities Fund (JSVAX) and I like Strong Opportunity Fund (SOPFX), both of them are up 35 percent in the last year.

Chana Schoenberger, staff writer: I don't see why you should have to pay a fund manager to manage your money. You can get an exchange-traded fund called the "Spider" (SPY). It's the S&P 500 Index, but its traded on the exchange. It has an expense-rate ratio of .2 percent, which is super cheap. You can trade in and out of it whenever you want, no active manager to pay.

Jim Michaels, editorial vice president: I've got a cheaper one than Mike's Vanguard. It's called Berkshire Hathaway - the "b" shares (BRK.B). It's not technically a mutual fund, but its a managed group of investments, and what I really like about it is, in this day and age, when managements pay themselves hundreds of millions of bucks, Warren Buffett ran this with a staff of 16 people last time I looked. From a little office in Omaha, and Warren pays himself $100,000 a year. So you get cheap management, for $2500 a share, you get a mutual fund, diversification, superb management, and you're paying very little for it.

David Asman: Berkshire's $2500 a share.. Mike, is it worth it?

Mike Ozanian: It's a little too rich for my blood, but Jim may be able to afford it.

Chana Schoenberger: The other thing is, what happens if something happens to Warren Buffett? This is a bet on the second richest man in the world, but if Warren were no longer running that company, I'd be a little worried about it.

Makers & Breakers

This week our guest stock picker is Larry Williams, he manages the "Darlings of the Dow" fund.

He's brought along Altria (MO) - formerly known as Philip Morris, and Kodak (EK)

• Altria (MO)

Larry Williams: MAKER

Its low priced to sales. That's one of the best fundamental values in the Dow. I'm really concerned about fundamental values. Ultimately value's rewarded. That stock will be rewarded. Its trading at $46 now, it can go between 25-30 percent higher in next 9 months or so. (Price Target: $63)

Jim Michaels: BREAKER

Altria, Schmaltria! It's Philip Morris in dark glasses! It makes cigarettes, it kills people. It makes money too, but its going to be endlessly under attack by regulators. I'm sorry, this is a moral judgment on my part, but its also a practical judgment, this company is trouble.

Elizabeth MacDonald: BREAKER

I'm making a financial judgment. Yes, the stock price is cheap, relative to earnings. But its still got $21 billion dollars in debt. And its still got those "tort rich" products like meat and cheese (obesity) and beer (drunk driving) and tobacco (cancer)

Larry Williams: The market is based on value, and value ultimately gets rewarded. Its one of the best value stocks of the Dow. We'll come back 9 months from now and see where the morality table lines up.

• Kodak (EK)

Larry Williams: MAKER

Kodak is just horrible right now. That's why its cheap relative to earnings. Its undervalued, and it has tremendous growth potential.

Elizabeth MacDonald: BREAKER

I think the stock is still way overpriced. They've fallen way behind in the digital revolution in film. Also they've handcuffed themselves, and they've overpaid for this deal in China to sell film products there.

Jim Michaels: BREAKER

Larry, I've got a lot of respect for you and your wisdom, and your system for picking stocks, but you've brought us a couple of stinkers this week. Kodak is not even a dividend stock anymore.. they had to get rid of that. They've fallen behind in every business they're in. Just to catch up, its going to take every penny they earn.

Larry Williams: When you look at the history of stocks in the Dow that are at these low value levels, they simply outperform the stocks regardless of morality or what you think is going on with the company. We'll come back in 6-9 months and see how those two stocks did. Kodak's trading at $24 a share, we think it can go another 25-30 percent (target price: 34)