Brandes Investment leader Charles Brandes (Trades, Portfolio) is considered one of the most important value investors today. He follows the Benjamin Graham school of value investing. In both the second and third quarters, he invested in the following stocks:

Avon Products Inc. (AVP)

In the second quarter, Brandes increased his position by 46.44% and added another 0.36% in the third quarter. The guru holds 0.06% of outstanding shares. The beauty company has a market cap of $827.2 million and an enterprise value of $2.06 billion.

Donald Yacktman (Trades, Portfolio)'s

For more than 40 years, Royce & Associates, investment adviser to The Royce Funds, has been managing micro-cap, small-cap and small/mid-cap portfolios. Chuck Royce (Trades, Portfolio) is its chief executive officer, is one of the pioneers in small-cap investing and enjoys one of the longest tenures of any active mutual fund manager.

Following are stocks the guru added to his portfolio or increased in the fourth quarter.

The guru raised his stake in Flexsteel Industries Inc. (FLXS) by 764.76% with an impact of 0.12% on the portfolio. He is the company's main shareholder among the gurus

National Bankshares Inc. (NKSH) filed Quarterly Report for the period ended 2010-09-30. National Bankshares Inc. has a market cap of $181.1 million; its shares were traded at around $26.38 with a P/E ratio of 11.6 and P/S ratio of 3.2. The dividend yield of National Bankshares Inc. stocks is 3.2%. National Bankshares Inc. had an annual average earning growth of 7.4% over the past 10 years.

Highlight of Business Operations:

The noninterest margin remained relatively stable, decreasing 4 basis points from 1.55% at December 31, 2009 to 1.51% at September 30, 2010. The provision for loan losses for the nine months ended

National Bankshares Inc. (NKSH) filed Quarterly Report for the period ended 2010-06-30. National Bankshares Inc. has a market cap of $174 million; its shares were traded at around $25.09 with a P/E ratio of 11.4 and P/S ratio of 2.9. The dividend yield of National Bankshares Inc. stocks is 3.5%. National Bankshares Inc. had an annual average earning growth of 7.4% over the past 10 years.

Highlight of Business Operations:

Securities declined by $2,833, or 0.95%, from $297,417 at December 31, 2009 to $294,584 at June 30, 2010. Net loans at June 30, 2010 were $575,372, down $7,649, or 1.31%, from $583,021

National Bankshares Inc. (NKSH)

National Bankshares Inc. (NKSH) filed Quarterly Report for the period ended 2010-03-31. National Bankshares Inc. has a market cap of $188.9 million; its shares were traded at around $27.24 with a P/E ratio of 12.9 and P/S ratio of 3.2. The dividend yield of National Bankshares Inc. stocks is 3.1%. National Bankshares Inc. had an annual average earning growth of 7.4% over the past 10 years.

Highlight of Business Operations:

Securities declined by $10,327, or 3.47%, from $297,417 at December 31, 2009 to $287,090 at March 31, 2010. The decline

National Bankshares Inc. (NKSH) filed Quarterly Report for the period ended 2009-09-30. National Bankshares Inc. has a market cap of $191.63 million; its shares were traded at around $27.64 with a P/E ratio of 13.62 and P/S ratio of 3.24. The dividend yield of National Bankshares Inc. stocks is 2.97%. National Bankshares Inc. had an annual average earning growth of 24% over the past 5 years.

Highlight of Business Operations:

The return on average assets for the nine months ended September 30, 2009 was 1.45%, a decline of 6 basis points from 1.51% for the year ended December 31, 2008. The

National Bankshares Inc. (NKSH) filed Quarterly Report for the period ended 2009-06-30. National Bankshares Inc. is a bank holding company. Except for a separate investment portfolio Bankshares conducts all of its business operations through its two wholly-owned subsidiaries The National Bank of Blacksburg and Bank of Tazewell County . National Bankshares Inc. has a market cap of $185.3 million; its shares were traded at around $26.73 with a P/E ratio of 13.3 and P/S ratio of 3.1. The dividend yield of National Bankshares Inc. stocks is 3.1%. National Bankshares Inc. had an annual average earning growth of 24% over the

National Bankshares Inc. (NKSH) filed Quarterly Report for the period ended 2009-03-31. National Bankshares Inc. is a bank holding company. Except for a separate investment portfolio Bankshares conducts all of its business operations through its two wholly-owned subsidiaries The National Bank of Blacksburg and Bank of Tazewell County . National Bankshares Inc. has a market cap of $153.6 million; its shares were traded at around $22.16 with a P/E ratio of 11 and P/S ratio of 2.6. The dividend yield of National Bankshares Inc. stocks is 3.7%. National Bankshares Inc. had an annual average earning growth of 24% over the