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Over the last 70 years, value stocks clocked a 13.4% average annual return, vs. 10.2% for growth stocks, according to Ibbotson Associates.

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Mohnish Pabrai, an increasingly well-known value investor in the mold of Warren Buffett, has endured a tough year, but he continues to take the long view. In his Q2 letter to investors in his Pabrai Funds, he wrote "Some exceptional businesses and assets are clearly available at spectacular prices -- well below what a rational intelligent private buyer would pay for these businesses. These market declines generally bode well for net buyers of securities.

Billionaire investor Warren Buffett's Berkshire Hathaway Inc. announced changes in its investments in US stocks, which totaled $57.88 billion at the end of the second quarter, lower than $66.46 billion of investments as of March 31. In a filing with the US Securities and Exchange Commission on Thursday, Berkshire announced new holdings in NRG Energy Inc. while the company reduced its Anheuser-Busch Cos. Inc. (BUD:  News,   Chart,  Quote ) stock sharply and eliminated Trane Inc. holdings.

Hedge fund manager William Ackman is counting on comebacks for Sears Holdings Corp. and Target Corp., even as earnings declined, in a bet against fellow investors who have sent short interest sales to record highs.

The 42-year-old founder of New York-based Pershing Square Capital Management LP has won these kinds of retail bets in the past, most recently in a gain of as much as $202 million on his against-the-market investment in Longs Drug Stores Corp.

Bruce Berkowitz must be disappointed that the current Olympic Games program doesn't include professional money management in the competition. If it did, the veteran stock picker's neck would be weighted down with gold right now.

Berkowitz is CEO of Fairholme Capital Management in Miami, which oversees about $9 billion, most of it in the value-oriented no-load Fairholme Fund (FAIRX), of which Berkowitz himself is lead manager.