Tweedy Browne Buys Baxter International, Philip Morris International, Bank Of NY Mellon, Broadridge Financial Solutions, Sells Exxon Mobil

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Aug 11, 2010
The recent market correction and volatility certainly created opportunities for Tweedy Browne managers. They have initiated positions in a few large companies, as they discussed in their Q2 shareholder letter.

Tweedy Browne was from one of the oldest value shop. Ben Graham’s investment firm Graham-Newman was one of Tweedy Browne’s clients. As of June 30, the firm managed more than $10.1 billion. The firm manages four mutual funds, two of them are global value oriented.

Tweedy Browne managers are good at evaluating the stock market risks. In 2007, they warned investors about the market risk, saying “this market is fearless”. They were proved to be right, as the market lost 37% in 2008. Their Value Fund lost 24% in 2008, 13% better than the market. In 2009, they outperformed the market again. Over the past 10 years, the fund gained 47.7 cumulatively, while the market lost 8.1%.

They wrote in the Q2 shareholder letter: “As volatility ratcheted up during the quarter, we were presented with pricing opportunities in several new companies.”

According to the most recent filings, Tweedy Browne owns 57 stocks with a total value of $2.4 billion. These are the details of the buys and sells.

For the details of Tweedy Browne's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Tweedy+Browne

This is the sector weightings of his portfolio:

Consumer Goods

27.6%

Financials

21%

Industrials

15%

Health Care

11.5%

Consumer Services

11.1%

Oil & Gas

8.2%

Telecommunications

4.6%



These are the top 5 holdings of Tweedy Browne

  1. PHILIP MORRIS INTERNATIONAL INC (PM) - 6,540,079 shares, 12.42% of the total portfolio. Shares added by 44.72%
  2. Johnson & Johnson (JNJ) - 2,503,517 shares, 6.12% of the total portfolio. Shares added by 46.16%
  3. Berkshire Hathaway Inc. (BRK.A) - 1,223 shares, 6.08% of the total portfolio. Shares reduced by 0.57%
  4. CocaCola FEMSA S.A.B. De C.V. (KOF) - 2,319,615 shares, 6.01% of the total portfolio. Shares reduced by 1.7%
  5. ConocoPhillips (COP) - 2,493,252 shares, 5.07% of the total portfolio. Shares reduced by 0.51%


Added: Philip Morris International Inc (PM, Financial)

Tweedy Browne added to their holdings in Philip Morris International Inc by 44.72%. Their purchase prices were between $43.17 and $52.95, with an estimated average price of $47.58. The impact to their portfolio due to this purchase was 3.84%. Their holdings were 6,540,079 shares as of 06/30/2010.

Philip Morris International is the international tobacco company, with products sold in over 160 countries. Philip Morris International Inc has a market cap of $98.09 billion; its shares were traded at around $52.97 with a P/E ratio of 14.5 and P/S ratio of 1.6. The dividend yield of Philip Morris International Inc stocks is 4.4%.

Added: Johnson & Johnson (JNJ, Financial)

Tweedy Browne added to their holdings in Johnson & Johnson by 46.16%. Their purchase prices were between $58 and $66.03, with an estimated average price of $62.2. The impact to their portfolio due to this purchase was 1.93%. Their holdings were 2,503,517 shares as of 06/30/2010.

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. Johnson & Johnson has a market cap of $163.91 billion; its shares were traded at around $59.43 with a P/E ratio of 12.6 and P/S ratio of 2.7. The dividend yield of Johnson & Johnson stocks is 3.6%. Johnson & Johnson had an annual average earning growth of 10.8% over the past 10 years. GuruFocus rated Johnson & Johnson the business predictability rank of 4.5-star.

Added: Federated Investors Inc. (FII, Financial)

Tweedy Browne added to their holdings in Federated Investors Inc. by 17.34%. Their purchase prices were between $20.9 and $27.26, with an estimated average price of $23.64. The impact to their portfolio due to this purchase was 0.29%. Their holdings were 2,274,245 shares as of 06/30/2010.

Federated Investors, Inc. is a provider of investment management and related financial services. Federated Investors Inc. has a market cap of $2.21 billion; its shares were traded at around $21.45 with a P/E ratio of 11.9 and P/S ratio of 1.9. The dividend yield of Federated Investors Inc. stocks is 4.4%. Federated Investors Inc. had an annual average earning growth of 3% over the past 10 years.

Added: Automatic Data Processing Inc. (ADP, Financial)

Tweedy Browne added to their holdings in Automatic Data Processing Inc. by 290.73%. Their purchase prices were between $39.91 and $45.48, with an estimated average price of $42.5. The impact to their portfolio due to this purchase was 0.19%. Their holdings were 152,249 shares as of 06/30/2010.

Automatic Data Processing, Inc. is one of the largest providers of computerized transaction processing, data communication, and information services in the world. Automatic Data Processing Inc. has a market cap of $20.8 billion; its shares were traded at around $41.36 with a P/E ratio of 17.4 and P/S ratio of 2.4. The dividend yield of Automatic Data Processing Inc. stocks is 3.3%. Automatic Data Processing Inc. had an annual average earning growth of 2.8% over the past 10 years. GuruFocus rated Automatic Data Processing Inc. the business predictability rank of 4-star.

Added: Arthur J. Gallagher & Co. (AJG, Financial)

Tweedy Browne added to their holdings in Arthur J. Gallagher & Co. by 74.76%. Their purchase prices were between $23.95 and $26.59, with an estimated average price of $25.22. The impact to their portfolio due to this purchase was 0.06%. Their holdings were 129,767 shares as of 06/30/2010.

Arthur J. Gallagher & Co. and its subsidiaries are engaged in providing insurance brokerage, risk management, employee benefit and other related services to clients in the United States and abroad. Arthur J. Gallagher & Co. has a market cap of $2.67 billion; its shares were traded at around $25.47 with a P/E ratio of 19.9 and P/S ratio of 1.6. The dividend yield of Arthur J. Gallagher & Co. stocks is 5.1%. Arthur J. Gallagher & Co. had an annual average earning growth of 6.1% over the past 10 years.

New Purchase: Baxter International Inc. (BAX, Financial)

Tweedy Browne initiated holdings in Baxter International Inc.. Their purchase prices were between $40.47 and $59.92, with an estimated average price of $46.72. The impact to their portfolio due to this purchase was 4.31%. Their holdings were 2,563,114 shares as of 06/30/2010.

Regarding the recent purchase of BAX, Tweedy Browne wrote in their shareholder letter: “We also began to build a position in Baxter International, the U.S.-based medical products business as growth concerns in the plasma derivative market brought its stock down to attractive levels. Baxter is active in bioscience, producing drugs for hemophilia and immune deficiency disorders, and has the largest share in these markets. Baxter also produces medical delivery products such as intravenous solutions, premixed drugs and infusion pumps, as well as renal products for kidney failure. At initial purchase, the company’s shares were trading at roughly a third discount from a conservative estimate of intrinsic value (11 x earnings before interest, taxes, and intangible asset amortization).”

Baxter engages in the worldwide development, manufacture and distribution of a diversified line of products, systems and services used primarily in the health-care field. Baxter International Inc. has a market cap of $27.77 billion; its shares were traded at around $46.32 with a P/E ratio of 12 and P/S ratio of 2.2. The dividend yield of Baxter International Inc. stocks is 2.5%. Baxter International Inc. had an annual average earning growth of 7.1% over the past 10 years. GuruFocus rated Baxter International Inc. the business predictability rank of 3.5-star.

New Purchase: Akzo Nobel Nv (AKZOY.PK, Financial)

Tweedy Browne initiated holdings in Akzo Nobel Nv. The impact to their portfolio due to this purchase was 0.37%. Their holdings were 170,372 shares as of 06/30/2010.

Akzo Nobel, headquartered in the Netherlands, is one of the world's companies in selected areas of healthcare products, coatings, chemical, and fibers. with a P/E ratio of 21.95 and P/S ratio of 0.81. The dividend yield of Akzo Nobel Nv stocks is 2.46%. Akzo Nobel Nv had an annual average earning growth of 10.7% over the past 5 years.

New Purchase: Broadridge Financial Solutions Inc. (BR, Financial)

Tweedy Browne initiated holdings in Broadridge Financial Solutions Inc.. Their purchase prices were between $18.63 and $24, with an estimated average price of $21. The impact to their portfolio due to this purchase was 0.35%. Their holdings were 443,835 shares as of 06/30/2010.

Broadridge is a global provider of technology-based outsourcing solutions to the financial services industry. Broadridge Financial Solutions Inc. has a market cap of $2.79 billion; its shares were traded at around $20.5 with a P/E ratio of 12.7 and P/S ratio of 1.3. The dividend yield of Broadridge Financial Solutions Inc. stocks is 2.7%.

New Purchase: Bank Of Ny Mellon Cp (BK, Financial)

Tweedy Browne initiated holdings in Bank Of Ny Mellon Cp. Their purchase prices were between $25.11 and $32.54, with an estimated average price of $29.03. The impact to their portfolio due to this purchase was 0.34%. Their holdings were 334,477 shares as of 06/30/2010.

Bank of New York is a bank holding company and one of the world's larger financial institutions. Bank Of Ny Mellon Cp has a market cap of $30.86 billion; its shares were traded at around $25.44 with a P/E ratio of 10.8 and P/S ratio of 2.3. The dividend yield of Bank Of Ny Mellon Cp stocks is 1.4%.

New Purchase: Shenandoah Telecommunications Co (SHEN, Financial)

Tweedy Browne initiated holdings in Shenandoah Telecommunications Co. Their purchase prices were between $15.68 and $19.86, with an estimated average price of $17.72. The impact to their portfolio due to this purchase was 0.03%. Their holdings were 39,840 shares as of 06/30/2010.

Shenandoah Telecommunications Company is a holding company which provides a broad range of telecommunications services through its operating subsidiaries. Shenandoah Telecommunications Co has a market cap of $432.5 million; its shares were traded at around $18.22 with a P/E ratio of 18.2 and P/S ratio of 2.7. The dividend yield of Shenandoah Telecommunications Co stocks is 1.7%. Shenandoah Telecommunications Co had an annual average earning growth of 16.2% over the past 10 years.

Reduced: Altria Group Inc. (MO, Financial)

Tweedy Browne reduced to their holdings in Altria Group Inc. by 95.11%. Their sale prices were between $19.57 and $21.7, with an estimated average price of $20.71. The impact to their portfolio due to this sale was -0.02%. Tweedy Browne still held 21,060 shares as of 06/30/2010.

Altria Group is the parent company of Philip Morris USA, U. Altria Group Inc. has a market cap of $47.13 billion; its shares were traded at around $22.63 with a P/E ratio of 12.6 and P/S ratio of 2. The dividend yield of Altria Group Inc. stocks is 6.2%.

Reduced: Glaxosmithkline Plc (GSK, Financial)

Tweedy Browne reduced to their holdings in Glaxosmithkline Plc by 77.28%. Their sale prices were between $32.34 and $39.57, with an estimated average price of $35.94. The impact to their portfolio due to this sale was -0.25%. Tweedy Browne still held 225,970 shares as of 06/30/2010.

GlaxoSmithKline is one of the world's research based pharmaceutical and healthcare companies and is committed to improving the quality of human life by enabling people to do more, feel better and live longer. Glaxosmithkline Plc has a market cap of $105.94 billion; its shares were traded at around $37.4 with a P/E ratio of 12.1 and P/S ratio of 2.4. The dividend yield of Glaxosmithkline Plc stocks is 5.3%. Glaxosmithkline Plc had an annual average earning growth of 6.8% over the past 10 years. GuruFocus rated Glaxosmithkline Plc the business predictability rank of 3-star.

Reduced: Genuine Parts Company (GPC)

Tweedy Browne reduced to their holdings in Genuine Parts Company by 66.25%. Their sale prices were between $38.98 and $45.42, with an estimated average price of $41.53. The impact to their portfolio due to this sale was -0.33%. Tweedy Browne still held 303,292 shares as of 06/30/2010.

GENUINE PARTS COMPANY is a distributor of automotive replacement parts in the U. Genuine Parts Company has a market cap of $6.98 billion; its shares were traded at around $43.96 with a P/E ratio of 16.3 and P/S ratio of 0.7. The dividend yield of Genuine Parts Company stocks is 3.7%. Genuine Parts Company had an annual average earning growth of 6.1% over the past 10 years.

Reduced: American National Insurance Company (ANAT)

Tweedy Browne reduced to their holdings in American National Insurance Company by 33.01%. Their sale prices were between $82.32 and $114.77, with an estimated average price of $104.62. The impact to their portfolio due to this sale was -0.46%. Tweedy Browne still held 416,020 shares as of 06/30/2010.

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. American National Insurance Company has a market cap of $2.2 billion; its shares were traded at around $81.92 with a P/E ratio of 21.3 and P/S ratio of 0.8. The dividend yield of American National Insurance Company stocks is 3.8%.

Reduced: Comcast Corp. Special (CMCSK)

Tweedy Browne reduced to their holdings in Comcast Corp. Special by 49.75%. Their sale prices were between $16.0275 and $19.33, with an estimated average price of $17.43. The impact to their portfolio due to this sale was -1.31%. Tweedy Browne still held 3,871,240 shares as of 06/30/2010.

Comcast Corporation is principally involved in the development, management and operation of broadband cable networks, and in the provision of electronic commerce and programming content. Comcast Corp. Special has a market cap of $50.59 billion; its shares were traded at around $17.5 with a P/E ratio of 14.5 and P/S ratio of 1.4. The dividend yield of Comcast Corp. Special stocks is 2.2%. Comcast Corp. Special had an annual average earning growth of 14.9% over the past 10 years.

Sold Out: Cocacola Hellenic Bottling Company S.a. (CCH)

Tweedy Browne sold out their holdings in Cocacola Hellenic Bottling Company S.a.. Their sale prices were between $19.8 and $28.26, with an estimated average price of $23.74.

Coca Cola Hellenic Bottling Company is one of the largest bottlers of non-alcoholic beverages in Europe and the second largest Coca-Cola bottler in the world by sales volume. Cocacola Hellenic Bottling Company S.a. has a market cap of $9.11 billion; its shares were traded at around $24.9395 with and P/S ratio of 1. The dividend yield of Cocacola Hellenic Bottling Company S.a. stocks is 1.3%. Cocacola Hellenic Bottling Company S.a. had an annual average earning growth of 15.7% over the past 5 years.

Sold Out: Eni S.p.a. (E)

Tweedy Browne sold out their holdings in Eni S.p.a.. Their sale prices were between $35.37 and $48.33, with an estimated average price of $41.47.

ENI explores for, produces, refines, transports and markets natural gas, oil and produces chemicals. Eni S.p.a. has a market cap of $87.3 billion; its shares were traded at around $43.59 with a P/E ratio of 9.1 and P/S ratio of 0.8. The dividend yield of Eni S.p.a. stocks is 6.8%. Eni S.p.a. had an annual average earning growth of 13.9% over the past 10 years. GuruFocus rated Eni S.p.a. the business predictability rank of 4-star.

Sold Out: Exxon Mobil Corp. (XOM)

Tweedy Browne sold out their holdings in Exxon Mobil Corp.. Their sale prices were between $57.29 and $69.29, with an estimated average price of $64.08.

Exxon Mobil Corporation's principal business is energy, involving exploration for, and production of, crude oil and natural gas, manufacturing of petroleum products and transportation and sale of crudeoil, natural gas and petroleum products. Exxon Mobil Corp. has a market cap of $315.74 billion; its shares were traded at around $61.93 with a P/E ratio of 12 and P/S ratio of 1. The dividend yield of Exxon Mobil Corp. stocks is 2.8%. Exxon Mobil Corp. had an annual average earning growth of 11.2% over the past 10 years. GuruFocus rated Exxon Mobil Corp. the business predictability rank of 3.5-star.