Two of our more recent purchases, Hyundai Motor (XKRX:005380) and Kia (XKRX:000270), belong to the same “chaebol” in South Korea, and both have demonstrated an ability to grow their intrinsic values at attractive rates over the longer term. They have become significantly more competitive against their Japanese rivals in recent years as quality and customer satisfaction ratings have risen at both companies. At purchase, both companies were trading at discounts to book value, less than 10X earnings and at substantial discounts to our estimates of their intrinsic values.
From Tweedy Browne (Trades, Portfolio)’s 2nd Quarter 2015 Commentary.
