Tweedy Browne Global Value Buys and Adds to 5 Stocks

Venerable fund bought two new international positions

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Jan 13, 2017
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Tweedy Browne (Trades, Portfolio) Global Value Fund follows Ben Graham-style investment principles and had low portfolio turnover of 1% in the fourth quarter, it reported Friday.

The fund invests primarily in developed non-U.S. stocks from diverse sectors. Stocks are selected based on their discounts from managers’ assessments of their intrinsic worth. The $9 billion fund ended the quarter with its largest portfolio allocations as 25% in financial services, 17.9% in consumer defensive and 13.5% in consumer cyclical stocks.

“Despite growing macroeconomic uncertainty, stemming from interest rates, oil prices, terrorist activity, the Syrian civil war, an adventuresome Russia, volatile currencies, elections, and continued sluggish underlying growth, investors continue to prefer equities over low-to-negative yielding fixed income instruments,” the fund managers wrote in their letter at the end of the third quarter. “As a result, equity valuations remain high in virtually all equity oriented asset classes, in our view, and bargain hunting continues to be challenging for price disciplined investors.”

Tweedy Brown Global Value Fund added two new stock positions in the fourth quarter and added to three they already held.

Buys

LG Electronics Inc. (XKRX:066570, Financial)

The fund bought 95,895 shares, which represent 0.06% of the portfolio. The stock’s fourth quarter price averaged 48,182 Korean won per share.

LG Electronics Inc. has a market cap of 9,597.51 billion won; its shares were traded around 52,900.00 won. The trailing 12-month dividend yield of LG Electronics Inc. stock is 0.75%.

Lumax International Corp. Ltd. (TPE:6192, Financial)

The fund bought, 739,000 shares, which represents 0.02% of the portfolio. The stock’s fourth quarter price averaged 51 Taiwan dollars.

Lumax International Corp. Ltd. has a market cap of 6.11 billion Taiwan dollars; its shares were traded around 51.10 Taiwan dollars with a P/E ratio of 10.47 and P/S ratio of 1.23. The trailing 12-month dividend yield of Lumax International Corp. Ltd. stock is 5.83%. The forward dividend yield of Lumax International Corp. Ltd. stock is 5.83%.

Increases

Nestle SA (XSWX:NESN, Financial)

The fund bought 801,395 shares of Nestle SA, which raised its position to 3,582,515, a 28.82% increase. The stock represents 3.65% of the portfolio. Its fourth quarter price averaged 72 Swiss francs.

Nestle SA has a market cap of 229.64 billion Swiss francs; its shares were traded around 74.45 Swiss francs with a P/E ratio of 26.68 and P/S ratio of 2.63. The trailing 12-month dividend yield of Nestle SA stock is 3.02%. The forward dividend yield of Nestle SA stock is 3.02%. Nestle SA had an annual average earnings growth of 9.2% over the past 10 years.

Kia Motors Corp. (XKRX:000270, Financial)

The fund bought 499,106 shares of Kia Motors, which increased its ownership by 18.66% to 3,173,506 shares. The stock represented 1.39% of the portfolio and had a fourth quarter average price of 39,570 Korean won.

Kia Motors Corp. has a market cap of 16,257.77 billion won; its shares were traded around 40,550.00 won with a P/E ratio of 7.39 and P/S ratio of 0.52. The trailing 12-month dividend yield of Kia Motors Corp. stock is 2.71%. Kia Motors Corp. had annual average earnings growth of 3.90% over the past five years.

G4S PLC (LSE:GFS, Financial)

The fund bought 647,048 shares of G4S PLC, which increased its position by 1.47% to 44,753,887 shares. The stock represented 1.75% of the portfolio and had a fourth quarter average share price of 2.36 pounds.

G4s PLC has a market cap of 3.78 billion pounds; its shares were traded around $2.46 with a P/E ratio of 122.0 and P/S ratio of 0.55. The trailing 12-month dividend yield of G4s PLC stock is 3.86%. The forward dividend yield of G4s PLC stock is 3.86%.