Stockpickr: Trade Like T. Boone Pickens

T. Boone Pickens, like Carl Icahn, is an investment legend from the 1970s and '80s, when he was a buyout king (oftentimes hostile). He has transformed himself into one of the most successful hedge fund investors ever.

It's hard enough returning even 10% a year when your assets under management are large (say, more than $100 million), but Pickens returned more than 300% in 2005 on holdings over $2 billion. He made $1.4 billion for himself in 2005 as a result. In 2006, Pickens was up over 26%.

(To see Pickens' holdings, check out his page on Stockpickr.)

Pickens is a believer in "peak oil theory," the idea that the planet has already reached its peak oil-production capabilities and that all the oil supplies will become depleted fairly soon. Consequently, this theory is a bet that the price of oil will go higher and higher, as will the stocks involved in drilling for oil and the stocks looking for energy alternatives. ...