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Tweedy Browne Buys Sysco Corp., Johnson & Johnson, Philip Morris International, Sells Urstadt Biddle Properties Inc., U.S. Bancorp

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Tweedy Browne was once Ben Graham's primary broker. While trading for Graham, they found that value investing works, and started to practice value investing themselves since 1930s. This team is conversavative, and they had a relative good 2008. They continue to view the current environment as a buying opportunity. This is their Q2 portfolio update.

For real time pick of Tweedy Browne after June 30, 2009, click here.

Tweedy Browne buys Sysco Corp., sells Urstadt Biddle Properties Inc., U.S. Bancorp during the 3-months ended 06/30/2009, according to the most recent filings of his investment company, Tweedy Browne CO LLC. Tweedy Browne owns 54 stocks with a total value of $1.7 billion. These are the details of the buys and sells.


New Purchases: SYY,

Added Positions: ANAT, JNJ, PM,

Reduced Positions: RPT, TMK,

Sold Out: UBP, USB,

For the details of Tweedy Browne's stock buys and sells, go to the Link Here

This is the sector weightings of Tweedy Browne's portfolio:

Financials 14.8% 14.8%
Telecommunications 5.4% 5.4%
Consumer Services 12.2% 12.2%
Health Care 7.3% 7.3%
Consumer Goods 28.6% 28.6%
Industrials 23.6% 23.6%
Basic Materials 0.5% 0.5%
Oil & Gas 6.8% 6.8%


These are the top 5 holdings of Tweedy Browne

  1. PHILIP MORRIS INTERNATIONAL INC (PM) - 3,576,178 shares, 9.26% of the total portfolio
  2. CocaCola FEMSA S.A.B. de C.V. (KOF) - 3,115,692 shares, 7.42% of the total portfolio
  3. Burlington Northern Santa Fe Corp. (BNI) - 1,334,954 shares, 5.82% of the total portfolio
  4. SK Telecom Co. Ltd. (SKM) - 5,853,575 shares, 5.26% of the total portfolio
  5. Union Pacific Corp. (UNP) - 1,490,783 shares, 4.6% of the total portfolio


Added: Johnson & Johnson (JNJ)

Tweedy Browne added to their holdings in Johnson & Johnson by 73.03%. Their purchase prices were between $50.47 and $56.6, with an estimated average price of $54.2. The impact to their portfolio due to this purchase was 1.26%. Their holdings were 883,257 shares as of 06/30/2009.

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. The company's worldwide business is divided into three segments: Consumer; Pharmaceutical; and Professional. Johnson & Johnson has a market cap of $167.32 billion; its shares were traded at around $60.72 with a P/E ratio of 13.4 and P/S ratio of 2.6. The dividend yield of Johnson & Johnson stocks is 3.2%. Johnson & Johnson had an annual average earning growth of 12.5% over the past 10 years. GuruFocus rated Johnson & Johnson the business predictability rank of 4.5-star.

Added: PHILIP MORRIS INTERNATIONAL INC (PM)

Tweedy Browne added to their holdings in PHILIP MORRIS INTERNATIONAL INC by 11.6%. Their purchase prices were between $36.7 and $43.54, with an estimated average price of $40.5. The impact to their portfolio due to this purchase was 0.96%. Their holdings were 3,576,178 shares as of 06/30/2009.

Philip Morris International is the leading international tobacco company with products sold in over 160 countries. They own 7 of the top 15 brands in the world and have a strong mix of international and local products that seek to appeal to a wide array of adult smokers. PHILIP MORRIS INTERNATIONAL INC has a market cap of $92.59 billion; its shares were traded at around $47.2 with a P/E ratio of 14.7 and P/S ratio of 1.5. The dividend yield of PHILIP MORRIS INTERNATIONAL INC stocks is 4.6%.

Added: American National Insurance Company (ANAT)

Tweedy Browne added to their holdings in American National Insurance Company by 5.52%. Their purchase prices were between $61.66 and $79.37, with an estimated average price of $72. The impact to their portfolio due to this purchase was 0.19%. Their holdings were 801,376 shares as of 06/30/2009.

American Nat'l Insurance's family of companies offers a broad line of products and services which include individual and group life and health insurance and annuities; personal lines property and casualty insurance; credit insurance and mutual funds. The life insurance business conducted by the American National family of companies is conducted in all states as well as in Mexico Puerto Rico Guam and American Samoa. American National is also authorized to sell its products to American military personnel in Western Europe. (Company Press Release) American National Insurance Company has a market cap of $2.21 billion; its shares were traded at around $83.63 with a P/E ratio of 43.1 and P/S ratio of 0.9. The dividend yield of American National Insurance Company stocks is 3.7%.

New Purchase: Sysco Corp. (SYY)

Tweedy Browne initiated holdings in Sysco Corp.. Their purchase prices were between $22.56 and $24.09, with an estimated average price of $23.2. The impact to their portfolio due to this purchase was 0.03%. Their holdings were 26,140 shares as of 06/30/2009.

Sysco Corporation is the largest North American distributor of food and food related products to the foodservice or `food-prepared-away-from-home` industry. The company provides its products and services to restaurants healthcare and educational facilities lodging establishments and other foodservice customers. Sysco Corp. has a market cap of $14.77 billion; its shares were traded at around $25.03 with a P/E ratio of 14 and P/S ratio of 0.4. The dividend yield of Sysco Corp. stocks is 3.8%. Sysco Corp. had an annual average earning growth of 13.3% over the past 10 years. GuruFocus rated Sysco Corp. the business predictability rank of 4-star.

Tweedy Browne commented On Sysco Corp. (SYY) in their shareholder letters:

Shortly after quarter end we began building a position in our dividend fund in Sysco, the largest North American distributor of food and related products to the food service industry. It is twice the size of its nearest competitor and six times the size of the #3 competitor in the market. We believe that it is a steady and predictable cash generating business which produces significant free cash flow each year, which they use in part to pay dividends and buy back stock. We also believe that their margins are far superior to their competitors, and their balance sheet is rock solid. Its two major competitors were recently acquired in leveraged buyouts at multiples of approximately 14X earnings before interest, taxes, depreciation and amortization, weakening their balance sheets and putting Sysco in a much stronger competitive position that should enable them to take market share in this difficult environment. We conservatively valued Sysco at 10 times earnings before interest and taxes (6-30-09), and were able to buy shares at a nice discount to this cautious valuation. Sysco has a dividend yield of approximately 4.1% and has increased its dividend in every year since 1977, 33 consecutive years. Certainly, its near term earnings will be impacted by the recession as people cut back on dining out, but if one is able to look a bit further out, we like its prospects particularly in light of the discount we believe we are receiving, and the yield we are being paid while we wait.

Reduced: RamcoGershenson Properties Trust (RPT)

Tweedy Browne reduced to their holdings in RamcoGershenson Properties Trust by 60.84%. Their sale prices were between $8.69 and $11.24, with an estimated average price of $9.6. The impact to their portfolio due to this sale was -0.02%. Tweedy Browne still held 43,155 shares as of 06/30/2009.

Ramco-Gershenson Properties Trust is engaged in the business of owning developing acquiring managing and leasing community shopping centers regional malls and single tenant retail properties nationally. RamcoGershenson Properties Trust has a market cap of $189.2 million; its shares were traded at around $10.12 with a P/E ratio of 4 and P/S ratio of 1.3. The dividend yield of RamcoGershenson Properties Trust stocks is 9.1%. RamcoGershenson Properties Trust had an annual average earning growth of 3.5% over the past 5 years.

Reduced: Torchmark Corp. (TMK)

Tweedy Browne reduced to their holdings in Torchmark Corp. by 67.19%. Their sale prices were between $26.53 and $40.01, with an estimated average price of $34.9. The impact to their portfolio due to this sale was -0.46%. Tweedy Browne still held 314,073 shares as of 06/30/2009.

Torchmark Corporation is a financial services holding company specializing in life and supplemental health insurance for middle income Americans marketed through multiple distribution channels including direct response exclusive and independent agencies. (Press Release) Torchmark Corp. has a market cap of $3.35 billion; its shares were traded at around $40.43 with a P/E ratio of 6.8 and P/S ratio of 1. The dividend yield of Torchmark Corp. stocks is 1.4%. Torchmark Corp. had an annual average earning growth of 10.1% over the past 10 years. GuruFocus rated Torchmark Corp. the business predictability rank of 3-star.

Sold Out: Urstadt Biddle Properties Inc. (UBP)

Tweedy Browne sold out their holdings in Urstadt Biddle Properties Inc.. Their sale prices were between $11.65 and $14.01, with an estimated average price of $13.2. The impact to their portfolio due to this sale was less than 0.01%.

Urstadt Biddle Properties Inc. is a self-administered equity real estate investment trust providing investors with a means of participating in ownership of income-producing properties and investment liquidity. UBP's core properties consist principally of community shopping centers located in the northeast with a concentration in Fairfield County Connecticut and Westchester and Putnam Counties New York. Urstadt Biddle Properties Inc. has a market cap of $382.9 million; its shares were traded at around $14.5 with a P/E ratio of 13.1 and P/S ratio of 4.7. The dividend yield of Urstadt Biddle Properties Inc. stocks is 6%. Urstadt Biddle Properties Inc. had an annual average earning growth of 5.6% over the past 5 years.

Sold Out: U.S. Bancorp (USB)

Tweedy Browne sold out their holdings in U.S. Bancorp. Their sale prices were between $17.59 and $20.48, with an estimated average price of $18.4. The impact to their portfolio due to this sale was less than 0.01%.

U.S. Bancorp is a financial services holding company. They operate full-service branch offices and ATMs and provides a comprehensive line of banking brokerage insurance investment mortgage trust and payment services products to consumers businesses and institutions. U.S. Bancorp is the parent company of Firstar Bank and U.S. Bank. U.S. Bancorp has a market cap of $43.68 billion; its shares were traded at around $23.02 with a P/E ratio of 27.7 and P/S ratio of 2.3. The dividend yield of U.S. Bancorp stocks is 0.9%. U.S. Bancorp had an annual average earning growth of 13.4% over the past 10 years. GuruFocus rated U.S. Bancorp the business predictability rank of 3.5-star.


Rating: 3.8/5 (5 votes)

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