The Tweedy Browne Global Value Fund seeks long-term growth of capital by investing throughout the world in a diversified portfolio consisting primarily of non-U.S. marketable equity securities. Although, they note, investments in U.S. securities are permitted and will be made when opportunities in the U.S. appear more attractive. Investments are focused in developed markets, and where practicable, perceived foreign currency exposure is hedged back into the U.S. dollar. The fund is currently managed by the team of Tweedy Browne Partners. As of the second quarter the Tweedy Browne Global Value Fund held 102 stocks, one being a new buy for the quarter, valued at around $6.772 billion.
Total SA (XPAR:FP)
The fund’s largest holding is in Total SA where they maintain 4,520,000 shares of the company’s stock. Their position in the company makes up for 4.8% of their total portfolio as well as 0.20% of the company’s shares outstanding.
During the past quarter Tweedy Browne (Trades, Portfolio) did not alter their position. The fund last changed their position in the company in the first quarter of 2013, since then the price per share is trading up approximately 27.9%.
Tweedy Browne (Trades, Portfolio)’s historical holding history:
Total SA is an international oil and gas company in the world. With operations in more than 130 countries, the Company engages in all aspects of the petroleum industry, including upstream operations and downstream operations.
Total SA’s historical revenue and net income:
The analysis on Total SA reports that the company’s revenue has been in decline over the past year, its dividend is sitting near a 5-year low and its price is at a 5-year high. It also notes that the company has issued $3 billion of debt, but that overall its debt level is acceptable.
The Peter Lynch Chart shows that Total SA is currently undervalued:
Total SA has a market cap of €112.84 billion. Its shares are currently trading at around €49.73 with a P/E ratio of 12.50, a P/S ratio of 0.66 and a P/B ratio of 1.52. Total SA currently holds a 5.37% dividend yield. The company had an annual average earnings growth of 2.10% over the past ten years.
Roche Holding AG (XSWX:ROG)
Tweedy Browne (Trades, Portfolio)’s second largest position is in the Swiss company Roche Holding. The fund holds on to 984,000 shares of the company’s stock representing 4.3% of their total portfolio and 0.11% of the company’s shares outstanding.
Tweedy Browne (Trades, Portfolio) did not alter their holdings in the company over the past quarter. The last move they made in Roche Holdings was in the fourth quarter of 2010. Since then the price per share is up 87.2%.
Tweedy Browne (Trades, Portfolio)’s historical holding history:
Roche Holding AG manufactures and develops pharmaceutical product. It produces drugs for cardiovascular, infectious, dermatology, autoimmune, and respiratory diseases. Roche Holding’s headquarters are located in Basel, Switzerland.
Roche Holding’s historical revenue and net income:
The analysis on the company reports that the revenue has been in decline over the past five years, the operating margin is expanding and that the price is sitting near a 5-year high.
The Peter Lynch Chart suggests that Roche is currently overvalued:
Roche Holding AG has a market cap of CHF225.95 billion. Its shares are currently trading at around CHF264.00 with a P/E ratio of 20.00, a P/S ratio of 4.87 and a P/B ratio of 10.52. The company had an annual average earnings growth of 11.1% over the past ten years.
Novartis (XSWX:NOVN)
Tweedy Browne (Trades, Portfolio)’s third largest holding is in Novartis where they maintain 3,002,000 shares of the company’s stock. This position makes up for 4% of the fund’s total portfolio as well as for 0.12% of the company’s shares outstanding.
The fund has held the same position in the company since the first quarter of 2012. Since then the price per share has increased approximately 55.3%.
Tweedy Browne (Trades, Portfolio) Global Value’s historical holding history:
Novartis provides healthcare solutions that address the evolving needs of patients and societies worldwide with a portfolio that includes innovative medicines, preventive vaccines and diagnostic tools, generic pharmaceuticals and consumer health products. Novartis is a Switzerland-based company.
Novartis’ historical revenue and net income:
The analysis on Novartis reports that the company’s operating margin is expanding, the price is close to a 10-year high, the dividend yield is at a 5-year low and that the revenue has slowed down in the past year.
The Peter Lynch Chart suggests that the company is currently overvalued:
Novartis has a market cap of CHF195.14billion. Its shares are currently trading at around CHF79.75with a P/E ratio of 22.50, a P/S ratio of 3.78 and a P/B ratio of 3.11. The company had an annual average earnings growth of 4.90% over the past ten years.
GuruFocus rated Novartis the business predictability rank of 2.5-star.
Royal Dutch Shell PLC (XAMS:RDSA)
The company’s fourth largest holding goes to Royal Dutch Shell where they maintain 6,123,279 shares of the company’s stock. This position represents 3.7% of the guru’s total portfolio as well as 0.10% of the company’s shares outstanding.
The fund increased their position a small 1.19% by purchasing 72,089 shares of the company’s stock. This increase is the first change in holdings from Tweedy Browne (Trades, Portfolio) Global since the second quarter of 2013. The fund added these shares in the quarterly price range of €26.43 to €30.45, with an estimated average quarterly price of €28.54 per share. Since their buy the price per share has increased approximately 7%.
The fund’s historical holding history:
Royal Dutch Shell is an integrated oil and gas company. The company’s operating segment consists of Upstream, Downstream and Projects & Technology. Royal Dutch Shell is currently traded in the U.K., the Netherlands, the U.S. and Germany. Royal Dutch Shell is headquartered and based out of The Hague, Netherlands.
Royal Dutch Shell’s historical revenue and net income:
The analysis on the company reports that the company’s revenue has been in decline over the past year, the price is nearing a one-year high, the operating margin is expanding and the dividend yield is at a 1-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
Royal Dutch Shell has a market cap of €195.19 billion. Its shares are currently trading at around €30.53 with a P/E ratio of 21.50, a P/S ratio of 0.57 and a P/B ratio of 1.52. Royal Dutch currently holds a dividend yield of 4.37%. The company had an annual average earnings growth of 2.30% over the past ten years.
Axel Springer SE (XTER:SPR)
Tweedy Browne (Trades, Portfolio) Global’s fifth largest holding goes to Axel Springer where they maintain 3,726,000 shares of the company’s stock. Their position makes up for 3.4% of their total portfolio and 3.77% of the company’s shares outstanding.
Tweedy Browne (Trades, Portfolio) has not altered their position in Axel Springer since the fund made their first buy in fourth quarter of 2012. Since their initial buy the price per share has increased approximately 32.3%.
The fund’s historical holding history as of the second quarter:
Axel Springer AG publishes prints and distributes newspapers and magazines. Its purchased services include printing services, direct marketing, editorial services, and circulation and insurance services. It also produces television and radio programming.
Axel Springer’s historical revenue and net income:
The analysis on Axel Springer reports that the company’s dividend yield is near a 5-year low, its price is at a 10-year high and over the past three years the company has issued €9.7 million of debt, but its debt level is acceptable.
The Peter Lynch Chart suggests that the company is currently overvalued:
Axel Springer AG has a market cap of €4.31 billion. Its shares are currently trading at around €43.54 with a P/E ratio of 20.70, a P/S ratio of 1.52 and a P/B ratio of 1.81. The company had an annual average earnings growth of 14.20% over the past ten years.
Check out Tweedy Browne Global Value Fund’s complete fourth quarter portfolio here.
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