Robert Rodriguez is one of the top Guru investors

Check out the list of top stock Guru's on GuruFocus.com, Robert Rodriguez is kicking ass above anyone else, including Warren Buffett, Eddie Lampert, Wallace Weitz, and Carl Icahn (to name a few).

So what makes Robert tick and how has he managed to be up 19% YTD? Check out this article that came out the last time he picked up a stock, back in July. In June Rodriquez gave a speech to the CFA Society of Chicago titled 'Absense of Fear', it's long however insightful and packed with ideas that are backed by his 36 years of experience - we recommend you read it.

Rodriquez has only purchased three stocks during the past six months and he spends a huge amount of time looking and researching. He makes a limited number of investments per year and holds them for an extended period of time. His average portfolio turnover has been less than 20%, holding between 30 and 35 stocks, with the top 10 representing 40% to 60% of the average portfolio, typically having between 35% and 50% in two industries.

Robert Rodriguez listed these key attributes in summarizing his contrarian investment style,

• Focus on market leadership or niche companies that are in industries that are perceived to be out of favor and unloved — a bottom-up strategy.
• Select companies that have strong balance sheets — typically with total debt to total capital of less than 40%.
• They must be at a significant valuation discount to the market and its historical valuation parameters.
• Acquire them at modest premiums to book value and at less than 1x revenues.
• They should be on or close to being on the new low list.
• Have a long-term investment time frame — typically three to five years.

So those last 3 buys? They are:

Western Digital Corp. (NYSE:WDC) is now trading around $23 a share. WDC designs, develops, manufactures and sells hard drives. It sells its products worldwide to original equipment manufacturers (OEMs) for use in computer systems, subsystems or consumer electronics (CE) devices, and to distributors, resellers and retailers. On Monday WDC revised its previously announced fourth-quarter and fiscal 2007 earnings lower after determining it recorded an incorrect income tax benefit. With the adjustment, fourth-quarter earnings should have been reported as $212 million, or 94 cents per share. Fiscal year 2007 net income should have been $564 million, or $2.50 per share, the company said. Despite the news, the stock is up 9% for the week.

Mercury General Corporation (NYSE:MCY) is currently trading around $52 a share. MCY is a leading independent broker and agency writer of automobile insurance in California and has been one of the fastest growing automobile insurers in the nation. It is ranked as the third largest private passenger automobile insurer in California, with total assets over $4 billion. Today (8/30) Credit Suisse reiterated their "outperform" rating on Mercury General (MCY) and raised estimates for the company with a 12-month target price set at $60.

Atwood Oceanics, Inc. (NYSE:ATW) is now trading around $74 a share. ATW is in international offshore drilling, exploratory/developmental oil and gas wells and related support, as well as management & consulting services. The Company's operations include eight offshore mobile drilling units located in five regions of the world, such as offshore southeast Asia, offshore Africa, offshore Australia, the Black Sea and the United States Gulf of Mexico. On August 9th in a research note, analyst A. Jayaram of Credit Suisse maintains his "underperform" rating on Atwood Oceanics Inc (ATW.NYS) with a target price set to $60. The stock is up 12% over the past 3 months.

Article written by: Steve Reeves
Article posted on: August 30th, 2007

Disclaimer: The Author does not have any positions in any of the securities mentioned in this publication.