Top Stock Picks of Six Billionaire InvestorsOnce a quarter, certain extremely large investors have to make public to the Securities and Exchange Commission what their holdings in stocks and other securities are. For the rest of us, it's a good time to see what the really smart money has been doing.

Those disclosures were filed Monday for the third quarter, and The Wall Street Journal took the opportunity to pore through the SEC filings of six of the greatest investors on the planet. Once those six have taken big positions, they're probably delighted to share the news of their holdings with the rest of the world. After all, they can only hope that small investors will see the wisdom of these picks and pile in -- thus further boosting the value of their investments. But the real question that investors need to ask is which of these holdings still has further to rise.

I looked at the stocks The Wall Street Journal highlighted from those 13-F filings, which track the investments of those with over $100 million under management. I focused in on the ones with the lowest Price/Earnings to Growth (PEG) ratios – thus picking the ones that trade at the lowest price relative to their expected earnings growth. If these companies deliver on their promise, I think they have the furthest to rise and could still be good investments.

Without further ado, here are the best picks from the current holdings of six of the world's top investors:

John Paulson
Paulson's best pick is Genzyme (GENZ) which sports a PEG of 0.12 -- and in my opinion, anything less than 1.0 is cheap. Genzyme trades at a forward P/E of 20 and its earnings per share are expected to grow 169% to $3.45 in 2011. It's also the target of a hostile takeover attempt by Sanofi Aventis (SNY). But this stock has risen 42% in the last year, so it's hardly undiscovered. Still, my hunch is that if Genzyme achieves the rapid earnings growth that analysts expect, it will do fine whether it gets taken over or not.

Warren Buffett
Buffett has a good thing going with long-time holding Wells Fargo (WFC). It looks quite inexpensive at a PEG of 0.59. Its P/E is 16.5 and its earnings are expected to grow 28% to $2.81 in 2011. The stock has been flat over the last year and it pays a dividend yield of 0.72%.

George Soros
Soros's picks are not as well-priced now as those of Paulson or Buffett, but his stake in AT&T (T) is a good bargain at a PEG of 0.91. AT&T trades at a P/E of 8.1 and its earnings are expected to grow 8.9% to $2.49 in 2011. The stock, which pays a whopping 5.87% dividend yield is up 9.1% in the last year.

David Einhorn
Einhorn's cheapest pick is Transatlantic Holdings (TRH), a property-casualty reinsurance company, that sports a PEG of 0.57 on a P/E of 8.5 with earnings expected to grow 15% to $6.24 in 2011. The stock is down 5.5% in the last year and yields 1.62%.

Carl Icahn
Takeover artist Icahn has a big stake in a company that's trading very cheaply if it's going to achieve its earnings growth forecast. That pick is Masco (MAS), a maker of home products like faucets and windows. It's trading at a PEG of 0.28, and its forward P/E of 22 is a small fraction of its 79% earnings growth to $0.50 in 2011. The stock has lost 20% of its value in the last year and its dividend yield is 1.97%.

Bill Ackman
Ackman's picks are not overly cheap, but of the ones disclosed in his 13-F, I like Fortune Brands (FO): It trades at a reasonable price and has put in a strong recent performance. Specifically, Fortune's PEG of 0.97 is based on a P/E of 21.3 on earnings forecast to grow 21.9% fo $3.40 in 2011. The stock has risen 41% in the last year and it yields 1.33%.

Of these six, I'd pick Wells Fargo as the safest bet and Genzyme as the riskiest.

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PERENNIAL RANCH

WHO REALLY GIVES A CRAP WHAT THESE SO CALLED BILLIONAIRES PREDICT ANYWAY. IF YOUR JUST A REGULAR GUY, WORKING YOUR ASS OFF IN THIS WORLD, YOUR NOT GONNA BE ABLE TO AFFORD TO BUY THESE STOCKS ANYWAY. AND WHEN THE AVERAGE GUY DOES BUY ENOUGH OF THESE, THE BILLIONAIRES CRASH THE STOCK MARKET, WE LOSE ALL OF OUR MONEY AND THEY GET TWICE AS RICH. THINGS WILL NEVER CHANGE AS LONG WE HAVE MILLIONAIRES AND BILLIONAIRES RUNNING OUR WORLD.IN THE END THEIR JUST PEOPLE WITH MORE MONEY.

November 18 2010 at 5:00 PM Report abuse rate up rate down Reply
billnyc52

If you want to help and stop some jobs from going overseas, start with the big banks. I called my bank about a problem with my checking account and found myself talking to some one in India. I could not understand a thing he was telling me. He kept reading from a paper hanging in front of him. He never really answered my question (i think). I gave up and went to a local savings bank and opened my accounts, which I know has there service department in the state. I know this is not much, but its a start. After I did this I also wrote a letter to my X big bank to inform them of why i closed my accounts. They wrote back to me telling me they are sorry to loose me as a customer, and wished me luck. If everyone who can't take it any more about jobs going overseas, just by letting these firms know how we feel, maybe they we do something. The only thing I can think of is they don't get many letters like mine sent to them. But if acouple of hundred or couple of thousand people started writing, then they might do something about it. THE POWER OF THE PEN IS THE BEST.

November 17 2010 at 1:41 PM Report abuse +2 rate up rate down Reply
tesla220

Seems like we've all heard this before. Heres Ken the Mechanics takke on the situation: Since we always seem to get rooked by the big companies that the GUBBAMENT sees fit to support in every way, I say invest in peanut butter jars. Clean them well. Wash your paper dollars in the kitchen sink as to rid of bacteria. Insert paper money in jars. Burry jars in yard. Safer than any onvestment the market has to offer.

November 17 2010 at 1:31 PM Report abuse rate up rate down Reply
bjamebon3

2 fix economy get rid of competition (illegals)transport the whole bunch back 2 mexico ,also before u do this train them 2 fight drug dealers in mexico hmmmmmmmm maybe not or bring in our troops from iraq and afiganistan ,2 guard border and shoot on site ,no fooling around TRUMAN AND IKE SENT ABOUT 25MILLION BACK IN THE GOOD OLD DAYS.RAISE THE GAS TAX 2 1.OO MORE AND TIE IT DIRECTLY 2 THE US DEFICET NO SPENDING OF IT ANYWHERE ELSE.EVERYBODY IN PUBLIC SECTOR TAKE AN IMMEDIATE PAY REDUCTION OF 30%MORE IF NEEDED.COPS=100K PLUS SCHOOL SUPT=200K PLUS ,EVERYBODY FROM PRES DOWN ,LAWYERS=250.PER HR PLUS ,I CAN GO ON AND ON ETC ETC ETC ,DECLARE A NATIONAL EMERGENCY AND DO THIS RIGHT AWAY ,MILITARY SPENDING CUT IT IN HALF AND MORE IF NEEDED ,WHATS KILLING INDUSTRY IN THIS COUNTRY IS FAT CAT FEES AND SALARIES ,LETS STOP TALKING AND START KICKING SOME REAL ASS.I AGREE ALL IMPORTS SHOULD BE CUT BOUT 40% 4 NOW AND MORE IF NEEDED,WE R 2 NICE 2 THE REST OF THE WORLD ,HMMMMMMMMM NICE GUYS FINISH LAST IF NOTHING CUT THOSE ASIAN IMPORTS THEY R KILLING US

November 17 2010 at 1:17 PM Report abuse -1 rate up rate down Reply
contactjohn

John Paulsen? Yes, let's follow the advice of the number two demon in the world after George Soros. Any one of the guys on this list are probably guilty of crimes against humanity with their oil stocks, or running up or down currencies of countries, the price of wheat from $2 to $25 a bushel through the trading desk of Goldmun Sachs where millions starved. Yes lets follow the advice of these non human demons who are basic parasites and are devouring the host (USA) as they invest in non democratic countries around the world in their hideous march toward global enslavement of the people. Yes, let's follow the demons.

November 17 2010 at 1:07 PM Report abuse +2 rate up rate down Reply
foolmeonce

Wells Fargo has about 4000 commercial properties that they are not collecting loan payments on hence not having these dead assets on their books. My estimate would be that Wells Fargo's stocks are going down and hopefully the company too. I like Warren, but I think he is already invested in this stock hense trying rally up others to invest making his own stock go up. You have to keep billions somewhere so I am sure he is already loaded with Wells Fargo stock. Becareful... a lot multi-millionairs and more so billionairs are playing a lot of games in the market and cooking books to make things look better.

November 17 2010 at 1:07 PM Report abuse -1 rate up rate down Reply
mcgintyachill17

omment

November 17 2010 at 11:49 AM Report abuse rate up rate down Reply
Keath

I hope Wells Fargo dies a slow and painful death. Thjey have ZERO loyalty to their cusotmers. They are staffed with fools. Don't buy their stock, don't put your money in their bank. They are run by theives in suits, who belong behind bars.

November 17 2010 at 11:31 AM Report abuse +1 rate up rate down Reply
2 replies to Keath's comment
isheadhunt

It was a great bank when it was called Wachovia:) But those idiots replaced all the talented people of Wachovia with their morons. Slow painful death here it comes!!!!

November 17 2010 at 12:52 PM Report abuse +1 rate up rate down Reply
isaiasbermudez

build destoy rebuild then destoy again build and destoy build and destoy the purposes of the banking system

November 17 2010 at 1:02 PM Report abuse +1 rate up rate down Reply
Keath

I hope Wells Fargo dies a slow and painful death. Thjey have ZERO loyalty to their cusotmers. They are staffed with fools. Don't buy their stock, don't put your money in their bank. They are run by theives in suits, who belong behind bars.

November 17 2010 at 11:31 AM Report abuse +1 rate up rate down Reply
TAROT4HIRE

I heard ( allegedly ) many of theses as well as tesla and aone are going to have problems and people are selling instead of buying wells fargo & tesla are having major internal financial troubles....

November 17 2010 at 11:21 AM Report abuse rate up rate down Reply