During the second quarter, The Tweedy Browne (Trades, Portfolio) Global Fund purchased a 760,360-share stake in Cie Generale des Etablissements Michelin SA (XPAR:ML) at an average price of 4.91 euros. The trade had a 1% impact on the Tweedy Browne (Trades, Portfolio) Global Fund portfolio.
Cie Generale des Etablissements Michelin was formed in 1889. The company manufactures and sells tires for all kinds of vehicles. It has three operating segments: passenger car and light truck tires and related distribution; truck tires and related distribution and specialty businesses.
Cie Generale des Etablissements Michelin has a market cap of 16.2 billion euros, a P/E ratio of 14.23, an enterprise value of 17.18 billion euros, and a price-book ratio of 1.70.
Cie Generale des Etablissements Michelin has several positive signs that may have had an impact on Tweedy Browne's decision to buy:
- The company has more than 127 years of experience within its industry and has manufactured more than 184 million tires.
- The company has a Piotroski F-Score of 7, which indicates a very healthy situation.
- The company is trading below its intrinsic value.
- The company is expanding its operations, which is usually a good sign.
- The company's dividend per share has been growing at a solid rate over the previous five years, at an average growth rate of 18.4% per year.
- The company has solid financial statements, with a Beneish m score of -2.75. This indicates that Cie Generale des Etablissements Michelin SA is not manipulating its financial results.
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Tweedy, Browne Company LLC Â was established by Forrest Birchard Tweedy in 1920 and takes a value investing approach which focuses on long-term investments very similar to Joel Greenblatt (Trades, Portfolio), Seth Klarman (Trades, Portfolio) and the father of value investing Benjamin Graham.
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Disclosure, author does not own any shares of this company.
