The world is rich with investing lessons. First, here's a "classic" photograph I stumbled across this week. (It's worth taking a look.) The lesson? The world is lazy. If you have the energy to move the dang log and do the due diligence, then the rewards are there for you.

Last night I attended a hearing held by the Alexandria, Va., Board of Architectural Review. Details aside, it was a nice reminder of how many people allow emotion to significantly affect their decision-making process.

Lazy people who allow emotion to affect their decision-making process? They're not the ones making money in the stock market. Rather, it's the people who work hard and analyze stocks with a cold eye that win big.

Take Warren Buffett, for example. He's bought into highly charged situations time and time again -- from American Express (NYSE:AXP) in the wake of the salad oil scandal to USG (NYSE:USG) as it dealt with asbestos lawsuits -- making big money in the process.

In fact, the time to think about buying stocks is when they're falling. Fortunes are made by the investors who succeed in buying great stocks while they're down.

Meet the masters
The names behind this strategy also include Munger, Weitz, Olstein, and many more. It's also the strategy the Fool's own Philip Durell preaches at Motley Fool Inside Value. But you don't need to be a master investor or an Inside Value subscriber to be a value investor. All you need is patience, a willingness to be contrary, and some good ideas.

We probably can't help you with your patience or your contrarian spirit, but here are five ideas from Motley Fool CAPS, a brand-new community-intelligence database that asks investors to rate stocks. In turn, every investor is ranked, as is every stock. So as more people participate and more time passes, we hope to be able to determine the best investor and the best stock in America -- and potentially the world (though, admittedly, we'll have to roll this thing out of beta testing before we can start talking about global domination).

And now for the stocks ...
These are stocks that, despite being down more than 10% over the past year, have received a five-star rating from our pool of individual and professional investors.

So, without further ado:


One-Year Return

Alkermes (NASDAQ:ALKS)


BJ Services (NYSE:BJS)


Florida Rock Industries (NYSE:FRK)


National Semiconductor (NYSE:NSM)


Newpark Resources (NYSE:NR)


Data effective as of 12/7/2006.

It should be noted that the portfolio manager Ron Baron was buying shares of Florida Rock earlier this year -- a stock that could benefit from some turnaround in the housing market. And Robert Olstein owns shares of Newpark Resources. While these are things to like about each of these stocks, it should be said (and so I'm saying it) that these are not recommendations. Instead, they're ideas that CAPS has generated, which I'm offering up in the name of further research.

After all, when you go digging for dirt cheap stocks, it's absolutely crucial to do your due diligence (without being lazy or letting emotion affect your decision-making). If you'd like to get started doing just that, come and see what our CAPS investors are actually saying about these companies. To do so, just click here to join the free beta test of CAPS today.

Tim Hanson does not own shares of any company mentioned. The Fool's disclosure policy assures you that no stocks were harmed in the penning of this article.