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Tickers in this Article: PDLI, NWSA, FRX, PFE, WLP, CSE
Unlike many professions, one of the wonderful things about investing is that you are not penalized for copying someone else's work. In fact, many times the best investment decision is to piggyback off of more experienced and seasoned investors. In addition, many investment professionals have access to better quality information, or what I like to call informational arbitrage. IN PICTURES: World's Greatest Investors

Great Ideas From Great Minds
One of my favorite money mangers is Bruce Berkowitz at Fairholme Capital Management. Berkowitz is a successful value investor rooted in the teachings of Ben Graham and Warren Buffett. Since its inception in 1999, the Fairholme Fund has delivered annual returns of 10.9%, compared to -3.6% for the S&P 500 Index.

A look at Fairholme's holdings reveals a big directional bet on healthcare. One of the company's biggest positions is Pfizer (NYSE:PFE), but the fund also owns WellPoint (NYSE:WLP) and Forest Labs (NYSE:FRX). Despite the uncertainty surrounding Washington's stance on the future state of healthcare, Berkowitz and company have spent months talking with lobbyists and really digging into the information. And the bottom line is that they feel that people are getting older and will need even more healthcare going forward. In addition, they believe that the U.S. government won't find a better way to manage healthcare without the help of private business. (For more insight, see Investing In The Healthcare Sector.)

Margin of Safety
Another value investor that many professional investors look up to is Seth Klarman. Klarman's investment partnership, the Baupost Group, has delivered annualized returns of more than 20% since it began operations in 1983. His only book, "Margin of Safety" (1991) is now out of print and commands a $1,000 price tag

Klarman's biggest position continues to be media giant News Corp (Nasdaq:NWSA). This media conglomerate owns a wide collection of valuable assets that span the globe, and that Klarman obviously feels are worth much more than their current market values. Klarman also owns a nice block of PDL BioPharma (Nasdaq:PDLI), a biotech company that essentially now just owns a royalty business after recent spin-offs.

Baupost also has a bet on CapitalSource (NYSE:CSE), a provider of credit and other financial products to small and medium businesses in the U.S. It's a very interesting investment considering the fragility of small businesses today in the U.S., but it's usually a bad idea to bet against Klarman. To be sure, the shares now fetch $4.50, up from their lows of 90 cents. Baupost was buying heavily during the first quarter, meaning the price range CapitalSource paid was $1 to $4. In normal environments, CapitalSource is very profitable, as evidenced by the $279 million the company earned in 2006 and the $176 million it pulled in in 2007. Against a market cap of $1.3 billion today, that creates a very attractive multiple if the company can resume that profitability in the near future.

Copy the Wise and Prudent
Looking to other investors as sources of ideas is an excellent beginning search strategy. In a world of thousands of publicly traded businesses, it can prove very beneficial to start with a shortened list of those investments made by the best. (For further reading, see The Greatest Investors Tutorial.)

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