According to the GuruFocus All-in-One Screener as of Jan. 31, the following guru-held companies have high dividend yields but performed poorly over the past 12 months.

POSCO

POSCO's (PKX) dividend yield is 4.93% and the payout ratio is 0.93. Over the past 52 weeks, the price has fallen 20.99% and shares are trading with a price-book ratio of 0.40 and a price-earnings ratio of 19.34.

The Korean steel producer has a market cap of $15.24 billion. The return on equity of 2.11% and return on assets of 1.18% are underperforming 59% of competitors. The equity-asset ratio of 0.56

Charlie Munger (Trades, Portfolio)’s dry wit and keen mind are often used in service of Berkshire Hathaway (BRK.A)(BRK.B) shareholders when he helps its chairman and CEO Warren Buffett (Trades, Portfolio) make investing decisions. The 95-year-old investor has more unilateral decision-making power over a portfolio elsewhere, however.

Munger is chairman of a California-based publishing company, Daily Journal Corp. (DJCO). There, along with the company’s vice chairman J.P. Guerin, he has a portfolio of six stocks. Four of the stocks were listed in the U.S. and, as of the end of the first quarter, were valued

The present, chairman and CEO of Fairfax Financial Holdings, Prem Watsa (Trades, Portfolio) sold shares of the following stocks during the first quarter.

The POSCO (PKX) holding was closed. The trade had an impact of -0.82% on the portfolio.

The steel producer has a market cap of $15.41 billion and an enterprise value of $27.94 billion.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of 3.85% and return on assets of 2.14% are outperforming 52% of companies in

Few sectors are as economically sensitive as the steel industry, and even top steel producers are not immune. Pro-business tax policies, a forgiving regulatory climate and solid demand for steel-intensive business should keep the sector moving up for years to come. In an industry that produced the world’s wealthiest man at the turn of the 19th century, steel has been mostly taken for granted by the market. Steel production is now just an incidental player on a world stage that is dominated by China, the largest producer and importer of the metal.

Even with the current administration helping Nucor (NUE)

I sometimes screen for stocks that are outperforming 20-year high-quality market corporate bonds in terms of a higher earnings yield. Such research increases the chances of uncovering a value stock. The bonds are securities representing the corporate loan issued by companies that are triple-A, double-A and single-A rated.

The most recent monthly observation on the spot rate of the 20-year bond indicates a 4.57% yield. The earnings yield is the inverse of the price-earnings ratio. My screening generated three steel stocks.

POSCO (PKX) has an earnings yield of 7.87%. The stock was trading around $59.3 per share on

For the past 10 years, the portfolio Charlie Munger (Trades, Portfolio) manages at the Daily Journal (DJCO) has not changed at all. The company only owns four stocks, which it bought in the depth of the financial crisis at bargain basement prices. They are Wells Fargo (WFC) (54% of the portfolio), Bank of America (BAC) (41%), U.S. Bancorp (USB) (5%) and Posco (PKX) (0.4%).

In the years leading up to 2008, Munger sat on his hands. At that time, the Daily Journal was a highly cash-generative business, generating an average return on equity of 25% to 30%

Prem Watsa (Trades, Portfolio) is often considered the “Warren Buffett (Trades, Portfolio) of Canada” for his record of compounding Fairfax Financial’s book value by 20% annually since 1985 and his view of investing.

As a devotee of Benjamin Graham, the founder of value investing, Watsa historically purchased stakes in large stable companies and held for the long term. Lately, he has shown a penchant for buying wounded companies at low prices and waiting long periods for them to recover. One example is Blackberry, the former smartphone maker that fell from grace in 2011 when

Capital Growth Management co-founder Ken Heebner (Trades, Portfolio) initiated 21 new positions in the third quarter. Among these, he invested in five basic materials stocks: The Chemours Co. (CC), POSCO (PKX), Anglo American PLC (NGLOY), Builders FirstSource Inc. (BLDR) and Norbord Inc. (OSB).

As the name of his firm suggests, Heebner is a growth-oriented investor. Managing a fairly concentrated portfolio of 53 stocks, he invests largely in the financial services, consumer cyclical and basic materials sectors.

Chemours

Heebner purchased 770,000 shares of Chemours for an average price of $47.08 per share, giving it 1.71% portfolio space.

The

Someone emailed me this question:

“How do you take the industry cycle into your consideration? For example, you say CRMT shouldn't trade below receivables per share. I believe it does now and people may be worried that subprime auto loans are in the beginning of down trend (or frothy). I think it may not be a concern considering the company’s track record and in the long-term view, but I'm curious how you incorporate the industry cycle into your investment decision.”

One way to think of this question is to divide up what I think about “a cyclical

Charlie Munger (Trades, Portfolio) is an investor and the business partner of the world’s most famous investor, Warren Buffett (Trades, Portfolio), but he is also among the rarified group that cleaned up during the financial crisis. The fountain of wit, wisdom and ice-cold discipline got into the market at its most despairing and quietly made a small fortune, primarily on banks, which he still owns nearly a decade later. With the rally in financials in recent months, Munger has three that continue to thrive.

Munger’s move into stocks began in 2009 after keeping most

Market Overview

Emerging markets continued to move higher in the face of volatility fueled by concerns over China’s economic slowdown and its implications for the global economy. It was not a smooth ride, however, as the MSCI Emerging Markets Index was down double-digits in January before reversing course.

One of the first quarter’s strongest performers was Brazil, even as it remained mired in political instability amid President Dilma Rousseff’s potential impeachment and former President Lula da Silva’s return to the limelight. Brazilian equities, as measured by the MSCI Brazil Index, gained over 28% in U.S. dollar terms. Oil-price stabilization also

Most of Third Avenue Management (Trades, Portfolio)’s largest fourth-quarter transactions were reductions of existing stakes. Third Avenue acquired five new stakes in the quarter, but most had modest impacts on the portfolio.

Third Avenue trimmed its stake in Weyerhaeuser Co. (WY), a Federal Way, Washington-based real estate investment trust, by nearly 23%. Third Avenue sold 2,660,082 shares for an average price of $30.26 per share. The transaction had a -1.98% impact on Third Avenue’s portfolio.

The remaining stake of 9,145,053 shares is 1.79% of Weyerhaeuser’s outstanding shares and 8.87% of Third Avenue’s total assets. First Eagle

Value investor and author [url=http://www.gurufocus.com/StockBuy.php?GuruName=Mohnish+Pabrai]Mohnish Pabrai[/url] ([url=http://www.gurufocus.com/StockBuy.php?GuruName=Mohnish+Pabrai]Trades[/url], [url=http://www.gurufocus.com/holdings.php?GuruName=Mohnish+Pabrai]Portfolio[/url]) purchased a new holding in Berkshire Hathaway (BRK.B) during the fourth quarter — his only new investment during the period. Pabrai also threw in the towel with another notable holding, South Korean steel maker Posco (PKX).

Pabrai closed a previous position in Berkshire back in the first quarter, selling the holding for an average of $147.23 per share. Over the past year, [url=http://www.gurufocus.com/StockBuy.php?GuruName=Warren+Buffett]Warren Buffett[/url] ([url=http://www.gurufocus.com/StockBuy.php?GuruName=Warren+Buffett]Trades[/url], [url=http://www.gurufocus.com/holdings.php?GuruName=Warren+Buffett]Portfolio[/url])’s holding company has declined 15% in price, and Pabrai took the opportunity to purchase 87,006 shares during the fourth quarter for just $134.21 per share.