Tickers in this Article: PFE, XTXI, STLY, BELFB
It's always intriguing to explore the investments by the best names in the investing arena: names like Seth Klarman, Bruce Berkowitz, Mason Hawkins, Prem Watsa and of course Warren Buffett. Knowing that one well-respected investor is on board is excellent; when more of them pile in, it can be a homerun.

IN PICTURES: World's Greatest Investors

Part of the Value Family
It shouldn't come as a surprise that many great investors are finding value in large cap quality names. As a group they have underperformed relative to just about every other equity asset class in this year's rally.

Pfizer (NYSE:PFE) happens to be one of the most visible underperformers, and would you know it, it is owned by Bruce Berkowitz at Fairholme and David Einhorn of Greenlight Capital. Year to date, Pfizer is down about 5% against a 13% rise in the S&P this year.

However at today's prices you are being offered the chance to buy the world's largest pharmaceutical drug maker at a near 4% dividend yield. Once you factor in the dividend, odds are quite good that Pfizer will outperform the indices over the next 3 to 5 years.

Slimmer Pickings
Some small cap names also come up including Crosstex Energy (Nasdaq:XTXI), a favorite amongst some in the value camp. Crosstex is in the business of gathering and transporting natural gas. The company has around 5700 miles of pipelines. Owning a natural gas pipeline is like having a monopoly between the two distribution points. Unfortunately, the company is loaded with debt.

Because gas pipelines are generally stable cash flow businesses, servicing debt is usually not an issue, until you have a nasty recession and tough credit environment. But Crosstex seems to be weathering the storm. The stock is off almost 90% from its all time high and could represent tremendous upside when the environment normalizes.

Debt-Free Selections
Marty Whitman at Third Avenue, a family of value-oriented mutual funds owns a couple of names that might not expect to fit the value mold. Stanley Furniture (Nasdaq:STLY) is a $135 million maker of residential wood furniture products. Some people are uneasy owning this type of business with its low margins and easy barriers to entry but Stanley has no net debt and it generates gobs of free cash flow: approximately $30 million, $20 million and $16 million in 2006, 2007 and 2008, respectively.

Third Avenue also owns shares in Bel Fuse (Nasdaq: BELFB), a manufacturer of electronic products for technology business. The balance sheet is pristine: an $18 share price with no debt and almost $10 per share in cash. Still the company is losing money, but it does trade at less than book value.

It's been my experience that businesses with such high cash levels and asset values that exceed market are feast or famine. If they can resume profitability, you'll get paid off; if not, the balance sheet will help you only to the extent that the company isn't burning away the cash.

The Bottom Line
These names may require further investigation. Still, knowing what pros are putting in their portfolios will give you an excellent investment idea at best and at worst, a few hours of time spent learning more about a company you didn't know about before. (For related reading, check out The Greatest Investors Tutorial and Why Warren Buffett Envies You.)

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