The Business of Value Investing.pdf

Develop a Search Strategy 75

Aside from Berkshire and Buffett, value investors occasionally

jump on the same wagon, whether it is for the same stock or a gen-

eral industry that has been battered and offers value. The fi lings

of several value investors will provide you with at least 100 ideas to

research. I can ’ t think of a better search fi lter than fi rst to see what

other smart successful investors are buying.

Basic Search Strategies

Researching what the smart money is buying is just the beginning.

The next step in developing a good search strategy is to fi lter out

the best resources and rely heavily on them. In no particular order

of importance, the next resources offer valuable investment ideas

for any value investor.

Figure 5.1 Fairholme Funds Filing for Second Quarter 2008 (filed

August 14, 2008)

Source: SEC filings.

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