Tweedy Browne Company LLC, a successor to Tweedy & Co., was first established by Forrest Birchard Tweedy in 1920 as a dealer in closely held and inactively traded securities. The firm’s 96-year history is grounded in undervalued securities, first as a market maker, then as an investor and investment advisor. The firm takes an investment approach similar to Benjamin Graham, who personally mentored one of the luckiest and most successful investors of all time, Warren Buffett (Trades, Portfolio).
In the first quarter of 2016, the Tweedy Browne (Trades, Portfolio) Global Value Fund added 256,998 shares of AGCO Corp. (AGCO, Financial).
AGCO is a global leader in the design, manufacture and distribution of agricultural equipment. The company delivers agricultural solutions to farmers by selling a wide range of products worldwide, which include popular well-known brands such as Challenger, Fendt, GSI, Massey Ferguson and Valtra.Â
AGCO has a market cap of $4.14 billion, an enterprise value of $4.99 billion, a P/E ratio of 16.41 and a P/B ratio of 1.51.
According to GuruFocus, AGCO has two medium warning signs. The company's P/S ratio is close to a three-year high at 0.58. The company has also been issuing new long term debt. Over the previous three years, AGCO has issued $23.7 million of debt, but overall its debt level is acceptable.
Tweedy Browne is an investment firm that likes to focus on long-term value. It is likely the firm added 256,988 shares of AGCO because the company is established with 96 years of experience in its industry. The company also has strong financial strength to go along with its experience. AGCO has an 8/10 financial strength rating according to GuruFocus with an interest coverage of 15.11, ranking them above 63% of the companies in the industry.
Since the Global Value Fund was started in June 1993, it has returned 7.79% annually after taxes on distributions and sale of fund shares during the 23 years that it has been in existence.
Cheers to your investment success.
Disclosure: Author does not own any shares of this stock.
