Stockpickr: Seeking Buffett's Apprentice

Warren Buffett's annual letter to shareholders, released last Thursday, offered several interesting items, including some new positions for Berkshire Hathaway(BRKA Quote). Check out the updated holdings on Stockpickr's Warren Buffett portfolio page.

Most notably, however, Buffett stated in the letter that he needs to find a younger replacement. The Berkshire Hathaway chairman is 76 years old, and his vice-chairman, Charles Munger, is 83. Lou Simpson, the company's top investment manager, is 70.

"At our October board meeting, we discussed that subject fully," Buffett said. "And we emerged with a plan, which I will carry out with the help of Charlie and Lou. Under this plan, I intend to hire a younger man or woman with the potential to manage a very large portfolio, who we hope will succeed me as Berkshire's chief investment officer when the need for someone to do that arises.

"As part of the selection process, we may in fact take on several candidates. Picking the right person(s) will not be an easy task. It's not hard, of course, to find smart people, among them individuals who have impressive investment records. But there is far more to successful long-term investing than brains and performance that has recently been good."

Over the next couple of days I'm going to survey the top Buffett-esque hedge funds and investors whom I believe have potential to become Buffett's apprentice. My guess is that Buffett will choose from among the top hedge fund managers out there based on their returns, their investment styles and their willingness to work for less pay than they would make if they remained in the hedge fund world. Along the way, by surveying their current portfolios, I believe we can find some good investment ideas.

First off, I called Ken Shubin Stein at Spencer Capital. His entire list of holdings, as of his most recent filings, can be found on the Spencer Capital portfolio page.