American International Group Inc (AIG), Genworth Financial Inc (GNW), Hartford Financial Services Group Inc (HIG): This Wall Street Superstar Is Spending Billions On These Dirt-Cheap Stocks

Some of that returning cash to shareholders is coming in the form of a stock buyback. As I’ve written, buying back shares while they trade well below tangible book value is a no-brainer. Hartford Financial Services Group Inc (NYSE:HIG) said in June that it was adding $750 million to its buyback program, bringing the total authorization to $1.25 billion. If the move is completed at current prices, it would reduce the share count by more than 100 million shares — roughly 22% of the total share count.

Risks to Consider: Insurance stocks have already posted solid gains this year and may need a breather before resuming their climb toward book value.

Action to Take –> It always pays to track the moves of Bruce Berkowitz, as his value investing approach never goes out of style. These insurers not only possess solid upside in an improving economy but also offer solid downside protection if the economy stumbles, thanks to their below-book valuations.

P.S. — Have you heard about the American Retirement Betrayal? In a just released report, top StreetAuthority analyst Nathan Slaughter predicts rough roads ahead for for a key area of of the U.S. economy… and it’s all Bernake’s fault. This collapse could happen as soon as October, and anyone not prepared for it could have their savings wiped out. To learn how Nathan plans to ride out the storm, click here.

– David Sterman

Warren Buffett’s Top 5 Stocks

Buffett’s firm, Berkshire Hathaway, holds dozens of stocks. But these five make up 75% of its portfolio… worth $65 billion. Click here to get Buffett’s top 5 stocks plus his 16 latest buys, FREE.