Value Investing firm Tweedy, Browne has published quarterly letter for 3Q10. All four Tweedy, Browne Funds participated in the market’s upturn, producing very nice returns for the quarter.
These are the top purchases of the firm, together with the firm’s holding history and comments on the particular stock in the quarterly report:
No. 1: Wells Fargo & Company (WFC, Financial), Buy: 1.07% of the portfolio - Total: 1,179,221 Shares
Wells Fargo & Company is a diversified financial services company. Wells Fargo & Company has a market cap of $141.04 billion; its shares were traded at around $26.95 with a P/E ratio of 15.6 and P/S ratio of 1.4. The dividend yield of Wells Fargo & Company stocks is 0.7%. Wells Fargo & Company had an annual average earning growth of 5.1% over the past 10 years.
No. 2: Bank of New York Mellon CP (BK, Financial), Add: 1.03% of the portfolio - Total: 1,431,817 Shares
Bank of New York is a bank holding company and one of the world's larger financial institutions. Bank of New York Mellon CP has a market cap of $33.16 billion; its shares were traded at around $27.31 with a P/E ratio of 11.7 and P/S ratio of 2.4. The dividend yield of Bank Of New York Mellon CP stocks is 1.3%.
In the quarterly letter, the firm made the following comments on investment:
No. 3: MasterCard Inc. (MA, Financial), Buy: 0.82% of the portfolio - Total: 100,815 Shares
MasterCard Inc. advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. Mastercard Inc. has a market cap of $31.85 billion; its shares were traded at around $243.41 with a P/E ratio of 18.3 and P/S ratio of 6.2. The dividend yield of Mastercard Inc. stocks is 0.3%.
No. 4: Baxter International Inc. (BAX, Financial), Add: 0.78% of the portfolio - Total: 3,017,466 Shares
Baxter engages in the worldwide development, manufacture and distribution of a diversified line of products, systems and services used primarily in the health-care field. Baxter International Inc. has a market cap of $29.52 billion; its shares were traded at around $50.52 with a P/E ratio of 13 and P/S ratio of 2.3. The dividend yield of Baxter International Inc. stocks is 2.3%. Baxter International Inc. had an annual average earning growth of 7.1% over the past 10 years. GuruFocus rated Baxter International Inc. the business predictability rank of 3.5-star.
No. 5: Johnson & Johnson (JNJ, Financial), Add: 0.21% of the portfolio - Total: 2,596,770 Shares
Johnson & Johnson is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. Johnson & Johnson has a market cap of $175.24 billion; its shares were traded at around $63.62 with a P/E ratio of 13.4 and P/S ratio of 2.8. The dividend yield of Johnson & Johnson stocks is 3.4%. Johnson & Johnson had an annual average earning growth of 10.8% over the past 10 years. GuruFocus rated Johnson & Johnson the business predictability rank of 4.5-star.
Check out other trading activities of the firm by clicking on Tweedy Browne.
Tweedy Fund Commentary Q3 2010 FINAL
These are the top purchases of the firm, together with the firm’s holding history and comments on the particular stock in the quarterly report:
No. 1: Wells Fargo & Company (WFC, Financial), Buy: 1.07% of the portfolio - Total: 1,179,221 Shares
Wells Fargo & Company is a diversified financial services company. Wells Fargo & Company has a market cap of $141.04 billion; its shares were traded at around $26.95 with a P/E ratio of 15.6 and P/S ratio of 1.4. The dividend yield of Wells Fargo & Company stocks is 0.7%. Wells Fargo & Company had an annual average earning growth of 5.1% over the past 10 years.
No. 2: Bank of New York Mellon CP (BK, Financial), Add: 1.03% of the portfolio - Total: 1,431,817 Shares
Bank of New York is a bank holding company and one of the world's larger financial institutions. Bank of New York Mellon CP has a market cap of $33.16 billion; its shares were traded at around $27.31 with a P/E ratio of 11.7 and P/S ratio of 2.4. The dividend yield of Bank Of New York Mellon CP stocks is 1.3%.
In the quarterly letter, the firm made the following comments on investment:
Bank of New York Mellon is a securities servicing provider bank with the leading market share in custody of assets. It has the highest credit rating of any of its leading competitors and has Tier 1 capital ratio of 11.4% of assets. It was named custodian for the TARP bailout funds during the crisis. These kinds of banks have sold in the past at premium multiples to traditional lending banks, given the stability of their business models. At purchase, we paid roughly 11 times 2010 consensus earnings, 9.1 times 2011 estimated earnings, and 64% of our estimates of intrinsic value.
No. 3: MasterCard Inc. (MA, Financial), Buy: 0.82% of the portfolio - Total: 100,815 Shares
MasterCard Inc. advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. Mastercard Inc. has a market cap of $31.85 billion; its shares were traded at around $243.41 with a P/E ratio of 18.3 and P/S ratio of 6.2. The dividend yield of Mastercard Inc. stocks is 0.3%.
MasterCard is one of the world’s leading payment processing and brand licensing companies that collects a toll on transactions and purchase volumes on MasterCard branded credit and debit cards. They do not issue cards or extend credit. They are growing rapidly, particularly outside the U.S., which now accounts for 55% of revenue. While there are regulatory risks associated with an investment in MasterCard, we believe the quality of the company’s business, its growth prospects, its competitive position, and its compelling valuation more than offset these risks. At purchase, it was trading at roughly two thirds of our estimate of intrinsic value applying a multiple of 12 times 2011 EBIT.
No. 4: Baxter International Inc. (BAX, Financial), Add: 0.78% of the portfolio - Total: 3,017,466 Shares
Baxter engages in the worldwide development, manufacture and distribution of a diversified line of products, systems and services used primarily in the health-care field. Baxter International Inc. has a market cap of $29.52 billion; its shares were traded at around $50.52 with a P/E ratio of 13 and P/S ratio of 2.3. The dividend yield of Baxter International Inc. stocks is 2.3%. Baxter International Inc. had an annual average earning growth of 7.1% over the past 10 years. GuruFocus rated Baxter International Inc. the business predictability rank of 3.5-star.
No. 5: Johnson & Johnson (JNJ, Financial), Add: 0.21% of the portfolio - Total: 2,596,770 Shares
Johnson & Johnson is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. Johnson & Johnson has a market cap of $175.24 billion; its shares were traded at around $63.62 with a P/E ratio of 13.4 and P/S ratio of 2.8. The dividend yield of Johnson & Johnson stocks is 3.4%. Johnson & Johnson had an annual average earning growth of 10.8% over the past 10 years. GuruFocus rated Johnson & Johnson the business predictability rank of 4.5-star.
Check out other trading activities of the firm by clicking on Tweedy Browne.
