Posted by alexg

Usually I wait till Friday or Saturday morning to post the week’s top value investing news, but this week I could not resist.

First on the plate is Ken Heebner’s CNN Money interview. For those not familiar with Ken Heebner, he has one of the hottest (if not the hottest) hand in investing right now. His mutual fund (CGMFX) was up an outstanding 80% last year! The first thing that came to mind when I read this was Peter Lynch. Why? In his books, Peter Lynch describes how much time and effort he spent gathering information on companies, often spending holidays in his office listening to conference calls and interviewing CEO’s. On the other hand, Ken Heebner spends his time analyzing macro trends. Indeed, a very tough thing to do as he is trying to stay ahead of thousands/millions trying to do the same thing. The other great value investing story came out canadianbusiness.com.

Basically, the article highlights four candidates that can may be the next Warren Buffett. Out of the four, I follow Ian Cumming of Leucadia National (LUK). For those interested in one of his picks, the insiders at Jefferies Group (JEF) are going crazy buying their own shares. Ian Cumming is loading up at current prices. I have not looked into the story at Jefferies but considering the buying going on, I might build a small position now, and do some reading. One thing I did learn from Peter Lynch, if insiders are buying, it’s usually for a good reason (they think their stock is cheap).

The next great read I found is Robert Rodriguez’s shareholder letter. Not much attention was given to it at valueinvestingnews.com, but it’s better than 90% of the stories submitted this week. Rodriguez earned my respect when he steered clear of the credit crisis and putting a buying halt on his funds last year. Currently, he is sitting at 38% cash and still outperforming the market.

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