Tweedy Browne

Tweedy Browne

Last Update: 2014-08-13
Related: Tweedy Browne Global Value

Number of Stocks: 49
Number of New Stocks: 0

Total Value: $4,682 Mil
Q/Q Turnover: 0%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Tweedy Browne' s Profile & Performance

Profile

Tweedy, Browne is an investment partnership owned by its four Managing Directors, William H. Browne, John D. Spears, Thomas H. Shrager, and Robert Q. Wyckoff, Jr. The operations of Tweedy, Browne are managed by its Management Committee consisting of Christopher H. Browne, William H. Browne and John D. Spears. This investment partnership has been recognized by Warren Buffett as Graham-Doddsville Superinvestors. The Firm has been in the investment business for close to 90 years. Benjamin Graham, through his investment in Graham-Newman Corp., was one of Tweedy's brokerage clients in the 1930s and 1940s.

Web Page:http://www.tweedy.com/

Investing Philosophy

The Tweedy Browne investment approach derives from the work of Benjamin Graham. Their research seeks to appraise the worth of a company, what Graham called "intrinsic value," by determining its acquisition value, or by estimating the collateral value of its assets and/or cash flow. Investments are made at a significant discount to intrinsic value, normally 40% to 50%, which Graham called an investor's "margin of safety." Investments are sold as the market price approaches intrinsic value, with the proceeds reinvested in other situations offering a greater discount to intrinsic value.

Historical Allocation of Stock, Bonds, Cash

Total Holding History

Performance of Tweedy Browne Value Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
201322.6831.55-8.9
201215.4515.40.1
2011-1.752.08-3.8
3-Year Cumulative39.2 (11.6%/year)55 (15.7%/year)-15.8 (-4.1%/year)
201010.5115.06-4.6
200927.626.461.1
5-Year Cumulative96.2 (14.4%/year)125.5 (17.7%/year)-29.3 (-3.3%/year)
2008-24.37-3712.6
20070.65.61-5.0
200611.6215.79-4.2
20052.34.91-2.6
20049.4212-2.6
10-Year Cumulative86.5 (6.4%/year)104.1 (7.4%/year)-17.6 (-1%/year)
200323.2428.7-5.5
2002-14.91-22.17.2
2001-0.08-11.911.8
200014.45-9.123.6
1999-0.4921-21.5
15-Year Cumulative122.6 (5.5%/year)98.3 (4.7%/year)24.3 (0.8%/year)
199814.0728.6-14.5
19974.0733.4-29.3
19968.6723-14.3
19953.0537.6-34.5
1994-3.661.3-5.0
20-Year Cumulative185.1 (5.4%/year)483.2 (9.2%/year)-298.1 (-3.8%/year)

Top Ranked Articles

Christopher Browne of Tweedy Browne: A Tribute
I wanted to devote an article to a legendary guru Christopher Browne who recently passed away. Christopher Browne passed away of a heart attack this past Sunday December 13th. Browne joined Tweedy Browne in 1969 and became a director in 1974. He remained at this position until two years ago when he stepped down due to health problems. According to the New York Times Christopher Browne helped Warren Buffett take control of Berkshire Hathaway in the 1960s. Read more...
Blackrock and Tweedy Browne Offer Some Perspective on Current Volatility
Tweedy, Browne 2010 Annual Report Stocks Highlights: LUK, JNJ, SYY, GLD, CSCO
Tweedy, Browne Company LLC is a value-oriented money management firm that bases itself on the principles of Ben Graham. They invest outside the United States using the same strategy of buying undervalued common stocks. They also look for companies with above-average dividend yields and an established history of paying dividends. The Tweedy, Browne Global Value Fund returned 10.59% over the year ended March 31, 2011. Read more...
Tweedy Browne Annual Report
I recently posted Third Avenue's Quarterly Shareholder Letter. I thought the letter contained valuable information on value investing, and the current economic crisis. Tweedy Browne is another Value Fund which I follow closely. Many people have stated that Tweedy Browne has the closest investment style to Benjamin Graham. They are classic value investors who place a heavy emphasis on quantitative factors. Tweedy Browne runs several value mutual funds. Tweedy Browne was started in 1920 in the days of Graham. Read more...
Tweedy Browne Keeps Buying JNJ, WFC, FII, BK, MA, ANAT, Selling PM, BAX, KOF, BRK.A, UNP
Tweedy, Browne is an investment partnership owned by its four managing directors, William H. Browne, John D. Spears, Thomas H. Shrager, and Robert Q. Wyckoff, Jr. The operations of Tweedy, Browne are managed by its management committee consisting of Christopher H. Browne, William H. Browne and John D. Spears. This investment partnership has been recognized by Warren Buffett as Graham-Doddsville Superinvestors. Read more...
» More Tweedy Browne Articles
Tweedy, Browne is an investment management firm established in 1920 by Bill Tweedy. Originally serving as a broker-dealer of illiquid and closely-held securities, Tweedy’s practice entered the limelight when he met legendary investor, Benjamin Graham.

Graham, a professor at Columbia Business School, concluded that there were more rewards to be had in managing money then teaching how to do so. As such, when Graham embarked on his investment career, Tweedy’s practice fell in line with Graham’s philosophy. In fact, Graham would serve as Tweedy’s largest client, with a relationship so closely knitted, their respective practices laid side by side on 52 Wall Street.

Tweedy, Browne’s prominence would lead to future relationships with legendary investors such as Schloss and Buffett. In 1959, the original partners launched their own investment vehicle that would serve as the foundation of the modern-day Tweedy, Browne. Currently, the firm is led by a quadruplet of managing directors: William H. Browne, Thomas H. Shrager, John D. Spears and Robert Q. Wyckoff.

In terms of operations, when considering assets under management in descending value, the fund utilizes four primary funds: Global Value, Global Value II, Value Fund, and the Worldwide High Dividend Yield fund. Although there are differences in the specialty of each of the aforementioned funds, each fund seeks “long-term growth of capital” in equities that Tweedy, Browne feels is undervalued. The only differentiating factor of the dividend yield fund is that it seeks investments in companies with an established history of above-average dividends.

Inherently, the firm utilizes a value-oriented approach to their investments. This approach involves the key step of rendering an intrinsic value of an equity through due diligence. Once this valuation is established, an investment is made only if a significant margin of safety can be established.

Tweedy, Browne’s holding policy is to sell a security as it approaches its intrinsic value, in order to reinvest the capital into other opportunities. To actually render the valuation and to conduct due diligence, the balance sheet and income statements are heavily stressed. In addition, it is the firm’s philosophy not to invest more than 3-5% of each fund into a single asset, nor to limit their investments by capitalization size. Key characteristics sought are:

A. Low P/B ratio
B. Low P/E ratio
C. Above average dividend yield
D. Low P/S ratio
E. Increased insider buys
F. Prices trading far from highs
G. Low corporate leverage

In terms of performance, the value fund will be utilized as the focal point of representation of the fund due to its representative profile. For the two most recent years, the fund returned 27.60% and 10.51% respectively. Comparatively speaking, the S&P 500 returned 26.47% and 15.06% for the same period. Currently, the fund has a return of 5.18% for the year, versus the benchmark’s return of 7.82%. However, when the fund is examined in terms of its long term performance, it has outperformed the benchmark. The 10-year cumulative return of the fund is 42.7% vs. the benchmark return of 16.4%. Since the value fund’s inception in 1993, it has returned 8.74% annually vs. the benchmark’s return of 8.28%.

Looking forward, the firm acknowledges that there is a great deal of uncertainty and turmoil in the world, with conflicts and natural disasters plentiful. However, they maintain that their philosophy of investing into nations with a liberal range of economic freedom and stability serves as a margin of safety in itself. Furthermore, Tweedy, Browne feels that their portfolios are not overpriced when compared against the S&P, although they admit that they feel that overall valuations are rising. As such, they remain “cautiously optimistic” regarding moving forward.

Commentaries and Stories

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Tweedy Browne’s Q3 2014 Commentary
Volatility returned to global equity markets near the end of the third quarter, helping to drive international and global indices off their previous highs. Largely due to declines in energy related shares, an underweighting in US-based companies, and a strengthening US dollar, all four of our Funds finished the quarter modestly in the red. The US dollar was up against most major currencies between 5% and 8% during the quarter, negatively impacting currency translated returns, particularly into our two unhedged Funds. With the exception of our Unhedged Global Value Fund’s return, which was marginally negative, our other Funds finished the year-to-date period in positive territory. While volatility is unsettling to many, it does carry with it potential opportunities to put some of our cash reserves to work. More...

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Why Hedge Fund Guru Charles Brandes Sold Out Total S.A.?
In this article, let´s consider Total S.A. (TOT), a $154.1 billion market cap, which has a trailing P/E ratio that indicates that the stock is relatively undervalued (PE 12.6x vs Industry Median 13.9x). More...

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Tweedy Browne’s Second Quarter 2014 Commentary
With the VIX (proxy for market volatility) at its lowest level since 2007, it is not surprising that investors’ tolerance for risk appears to be growing, as evidenced by the continued strength in global equities and most other financial instruments. In a fascinating study conducted by John Coates, a research fellow at Cambridge, linking risk taking to physical responses to stress, it was shown that when market volatility is high, cortisol (the “stress hormone”) levels increase, causing investor appetite for risk to decline. Conversely, when levels of market volatility are low, cortisol levels remain largely unaffected, resulting in a greater willingness on the part of investors to take on risk. One could argue that the complete transparency of central bank monetary policy around the globe, particularly in the United States, has caused the release of “one of the most powerful potential brakes on excessive risk taking in stocks.”† Whether or not we have reached bubble territory is subject to debate, but investors should be cognizant that, if risk is indeed largely predicated on the price one pays for a security, it is no time for complacency. As you well know, we are not More...

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Japanese Net Nets: Fantastic or Foolish? Seth Klarman,Tweedy Browne - Japanese Net Nets: Fantastic Or Foolish?
Investors should be forgiven for feeling weary of investing in Japanese net nets. More...

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Money Managers Tweedy Browne Report Largest Stocks, Topped by Johnson & Johnson Tweedy Browne - Money Managers Tweedy Browne Report Largest Stocks, Topped By Johnson & Johnson
Tweedy Browne (Trades, Portfolio) is a 93-year-old fund which focuses on undervalued securities, and which gained its investment approach from the late Benjamin Graham. The fund is owned and managed by William Browne, Thomas Shrager, John Spears and Robert Wyckoff, Jr. More...

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Tweedy Browne Increases Holdings of 3 Stocks in First Quarter Tweedy Browne - Tweedy Browne Increases Holdings Of 3 Stocks In First Quarter
Tweedy Browne (Trades, Portfolio), the famous value firm founded in 1920 and managing $20.9 billion in assets at last quarter-end, was sparing in its purchasing in the first quarter. For the second consecutive quarter, it bought no new stocks and added to only a few. In the first quarter of the year, it added more shares to only three holdings: Banco Santander Brasil SA (BSBR), National Oilwell Varco Inc. (NOV) and Philip Morris International Inc. (PM). More...

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Guru Stocks at 52-Week Lows: GOOG, HSBC, HMC, KML, NMR
According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows. More...

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Tweedy Browne Comments on Cenovus
n addition to this new position, we got a trading opportunity in Cenovus (CVE), the Canadian oil sands company, and added it to the Global Value Fund and Global Value Fund II – Currency Unhedged. It had previously only been held in the Worldwide High Dividend Yield Value Fund. We also added to our positions in Banco Santander Brasil, Antofagasta, Bangkok Bank, Imperial Tobacco, and Unilever. More...

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Tweedy Browne Comments on Standard Chartered Bank
In terms of portfolio activity, we established one new position during the quarter in all four of our Funds: Standard Chartered Bank (LSE:STAN), a large UK-based global bank with over 1,700 branches in 70 different markets around the globe. While Standard Chartered is domiciled in the UK, it is anything but a British bank. Founded in 1969 through the merger of Standard Bank of British South Africa and Chartered Bank of India, Australia and China, it is a bank with the bulk of its operating income derived from wholesale activities such as corporate finance, trade finance, foreign exchange, cash management, and custody services in markets such as Asia, the Middle East, and Africa. They also have a sizeable and conservative consumer business with a mortgage portfolio that is well secured by a loan-to-value ratio on its mortgages of less than 50%. Furthermore, it is a deposit financed bank that is not dependant on volatile, short term financing, as evidenced by a loan-to-deposit ratio of approximately 76%. The bank was considered a growth bank in the 2000s, somewhat immune to the problems of Western banks. It rode More...

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Tweedy Browne First Quarter 2014 Letter to Investors
After a strong year-end finish, global equity markets plateaued in the first quarter of 2014 as slowing growth in emerging markets and increasing tension in a number of regions slowed the building equity market momentum of 2013. On a relative basis, the Tweedy, Browne Funds responded well to this more unsettled environment with all four of our Funds besting their benchmark indices for the quarter. Most longer term performance comparisons continue to be quite favorable. More...

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Cheap Stocks: Financially Devastating or Fantastic? Tweedy Browne - Cheap Stocks: Financially Devastating Or Fantastic?
Will cheap stocks make you rich, or destroy your portfolio? More...

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Tweedy Browne's William Browne Speech to Ivey Business School
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Top Guru-Held South American Stocks Tweedy Browne,Jeremy Grantham - Top Guru-Held South American Stocks
Using the GuruFocus Aggregated Portfolio Screener you can filter results to see what companies maintain the highest amount of guru ownership. By using this screener, we filtered down to see which companies based out of South America were held by the highest number of gurus. More...

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Money Managers Tweedy Browne Report New Stocks, Topped by Johnson & Johnson
Tweedy Browne (Trades, Portfolio) is a 93-year-old fund which focuses on undervalued securities, and which gained its investment approach from the late Benjamin Graham. The fund is owned and managed by William Browne, Thomas Shrager, John Spears and Robert Wyckoff, Jr. More...

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Tweedy Browne Comments on Antofagasta
Portfolio activity was once again modest duri ng the quarter. Only one new position was established: Antofagasta (LSE:ANTO), a UK-listed Chilean coppe r mining company. The company owns majority interests in five copper mines in Chile and a railw ay, and we believe is a we ll run, low cost copper producer with a strong balance shee t. The company is profitable, gene rates free cash flow, and pays a dividend. While it is difficult to predict the direction of copper pr ices with any degree of certainty, declining ore grades and mine clos ures across the world should have a meaningful effect on supply over the next several years, resulting in better pricing in the future. At purchase, Antofagasta was trading at approximately 6.2 times enterprise value to EBIT (ear nings before interest and taxes), which was near its 52-week low, was in a net cash positi on and paid a dividend yield of 1.6% . We also added to a number of pre-existing positions in our Funds, including DB S Group, GlaxoSmithKline, HSBC, TNT Express, and G4S. More...

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Tweedy Browne Fund Fourth Quarter 2013 Commentary
Global equity markets shrugged off concerns abou t central bank tapering and continued to gain momentum in the fourth quarter, capping off another excellent year for equity returns. Despite carrying cash reserves that ranged from approximately 10. 9% to as much as 20.3%, a ll four of the Tweedy, Browne Funds finished the quarter and year on a str ong note, producing annual returns between 18.77% and 22.68%. More...

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Top Guru-Held South American Stocks as of the Third Quarter Tweedy Browne,Jeremy Grantham - Top Guru-Held South American Stocks As Of The Third Quarter
Using the GuruFocus Aggregated Portfolio Screener you can filter results to see what companies maintain the highest amount of guru ownership. By using this screener, we filtered down to see which companies based out of South America were held by the highest number of gurus. More...

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Tweedy Browne Comments on National Oilwell Varco
National Oilwell Varco (NOV)'s stock symbol is NOV, and industry experts insist it really stands for "no other vendor" as it is the almost universally preferred manufacturer of offshore drilling rig equipment in the global oil & gas industry. It has a leading market position in the segments of the oil & gas industry that are generating the most growth, deepwater drilling and shale drilling. The company has historically generated high returns on capital, has what we believe to be a conservative balance sheet with minimal debt, and, given the uncertainty associated with near term growth of drilling equipment orders, we were able to purchase shares at a significant discount to our estimate of the company's intrinsic value. More...

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Tweedy Browne Comments on Banco Santander
Banco Santander (Brasil) represents our first investment in a Brazilian company. With emerging markets such as Brazil contracting somewhat as China slows, and money moving out of emerging markets based on expectations of a change in U.S. Federal Reserve monetary policy, we were afforded a pricing opportunity in what we believe to be a very attractive bank. Although Banco Santander S.A. (BSBR), a large Spanish bank, is a significant shareholder of Banco Santander (Brasil), the Brazilian bank is an independently listed subsidiary with its own management team, board of directors, and capital base. At initial purchase, Banco Santander (Brasil) was trading right around tangible book value, below 10 times 2013 estimated earnings, and had a dividend yield of approximately 5%. For a bank, it is extremely underleveraged (19.9% Tier 1 capital ratio), has high net interest margins, and among its three local competitors, has the highest consumer exposure to what we believe will continue to be a rapidly growing middle class over the longer term in Brazil. More...

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Tweedy Browne Investment Adviser’s Letter to Shareholders - Semi-Annual Report
"Everything is in a state of flux, including the status quo." – Robert Byrne More...

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