Methodology: We screened companies for traits that suggest undervaluation. These 10 trade at a discount to comparable North American stocks within their industries, based on an evaluation of their trailing 12-month price-to-earnings and price-to-book values. In addition, these firms’ five-year average return on equity surpasses that of their peers. Listees come with price-to-earnings multiples of less than 15 and price-to-book equal to or less than 1.5.
Why you should care: Lawsuits, succession woes and some unusually bad investments—it’s been troubled times (relatively speaking) for Warren Buffett, the icon of value investing. But don’t let Buffett’s bad headlines put you off the hunt. The strategy he’s long championed remains a viable one.
Worth noting: Though our list draws on industries as diverse as airlines and mortgage financing, fully half its number is made up of resource companies that offer long-term upside at sensible prices. Last year’s best performer features on our list again this year. Twenty years ago, Pinetree Capital was a public shell for venture investments in early-stage tech companies, but for the past decade it’s been focused on resources. That’s paid off. Though no analysts cover the company, its rich returns—the stock nearly doubled in the past 12 months—have made it an Investor 500 darling.