Tweedy Browne

Tweedy Browne

Last Update: 08-03-2018
Related: Tweedy Browne Global Value

Number of Stocks: 44
Number of New Stocks: 1

Total Value: $3,219 Mil
Q/Q Turnover: 2%

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 (%)
201716.4621.71-5.2
20169.6911.99-2.3
2015-5.391.24-6.6
3-Year Cumulative20.9 (6.5%/year)38 (11.3%/year)-17.1 (-4.8%/year)
20144.0213.47-9.5
201322.6832.3-9.6
5-Year Cumulative54.2 (9.1%/year)107.2 (15.7%/year)-53 (-6.6%/year)
201215.4515.99-0.5
2011-1.751.9-3.6
201010.5115.05-4.5
200927.626.351.2
2008-24.37-36.7912.4
10-Year Cumulative86.6 (6.4%/year)125 (8.4%/year)-38.4 (-2%/year)
20070.65.14-4.5
200611.6215.85-4.2
20052.34.83-2.5
20049.4210.7-1.3
200323.2428.19-5.0
15-Year Cumulative189 (7.3%/year)307.7 (9.8%/year)-118.7 (-2.5%/year)
2002-14.91-21.586.7
2001-0.08-11.7611.7
200014.45-9.7524.2
1999-0.4920.4-20.9
199814.0728.7-14.6
20-Year Cumulative219.2 (6%/year)294.5 (7.1%/year)-75.3 (-1.1%/year)
19974.0733.47-29.4
19968.6722.49-13.8
19953.0538.04-35.0
1994-3.660.4-4.1

Top Ranked Articles

These Unfortunate Facts Ensure Deep Value Will Outperform Value investing has had a terrible run in the US of late, so are value investors doomed to low returns going forward? We think these major Wall Street errors are part of the answer
The evidence that value outperforms long term is compelling, but the question is why. And why do most professionals continue to ignore value strategies? Read more...
How to Analyze Companies, According to Benjamin Graham's Broker Tweedy Browne discusses how it looks at companies when analyzing investments
In the world of value investing, Tweedy Browne (Trades, Portfolio) has a great reputation. The firm was Benjamin Graham's broker and also provided services for Walter Schloss and Warren Buffett (Trades, Portfolio). Read more...
What Has Worked in Investing? There are about 40 strategies for selecting stocks in the Tweedy Browne handbook. Here's my take
As the market continues to climb, it is easy to look for new ways to invest and potentially get off course. Read more...
Tweedy Browne Comments on WPP Guru stock highlight
WPP (NYSE:WPP), one of our newer holdings, was in the news late in the quarter as the company announced that it had hired a law firm to investigate allegations of personal misconduct by Martin Sorrell, the company’s CEO and one of Britain’s best known and highly acclaimed business leaders. The company stressed that any financial liabilities associated with the allegations are not material, and over the weekend of April 14, Sorrell announced his retirement. We continue to monitor the situation closely, but it is possible that this Board intrigue could result in changes at the company that might be beneficial to shareholders, such as streamlining the business and exiting noncore assets. The situation remains fluid. In our view, the company remains fundamentally a good business given its asset light nature and variable cost structure. It is significantly undervalued in our view, and currently has a dividend yield of nearly 5% while we wait for value recognition in its shares. Read more...
Tweedy Browne Global Value Fund's Top Buys in 2nd Quarter A South Korean tire manufacturer with highest operating margin in its class was a top buy
Fund managers who run the Tweedy Browne (Trades, Portfolio) Global Value Fund chose a pair of stocks from overseas companies in the second quarter of the year to enhance their $8.4 billion portfolio, new filings showed. 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 Dumping Spree in 2nd Quarter The firm tossed the stock of this tobacco giant after holding over five years for an estimated return of 24%. Only one new buy in the second quarter Tweedy Browne - Tweedy Browne's Dumping Spree In 2nd Quarter
Tweedy Browne (Trades, Portfolio) Co. was busier dumping and reducing stakes than establishing new ones in the second quarter of the year, filings showed. More...

PHARMACEUTICAL, TOBACCO, PHILIP MORRIS, EARNINGS, ADD, REDUCE,


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Tweedy Browne Trims Halliburton, Cisco Firm's largest sales of the 2nd quarter Tweedy Browne - Tweedy Browne Trims Halliburton, Cisco
Tweedy Browne (TradesPortfolio) is an investment partnership that has had an influence on the market for nearly a century. The firm sold shares of the following stocks during the second quarter. More...

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Tweedy Browne Comments on Tarkett Guru stock highlight
Tarkett (XPAR:TKTT), which is owned and controlled by the Deconinck family, is a global flooring company based in France. It designs, manufactures and distributes carpet and vinyl for commercial and residential use. While its business is somewhat economically cyclical, 80% of Tarkett’s end demand is driven by renovation and just 20% by new construction. In our view, Tarkett has a good, cash generative business that has consistently earned 20% returns on tangible invested capital. At purchase, it was trading at roughly 8 times normalized EBITA (earnings before interest taxes and amortization) and had approximately a 9% owner’s earnings yield (net operating profit after tax). In addition, it has paid a dividend yield of approximately 2.3%, and the founding family recently purchased a small amount of company shares at higher prices. More...

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Tweedy Browne Global Value Fund's Top Buys in 2nd Quarter A South Korean tire manufacturer with highest operating margin in its class was a top buy Tweedy Browne, Tweedy Browne Global Value - Tweedy Browne Global Value Fund's Top Buys In 2nd Quarter
Fund managers who run the Tweedy Browne (Trades, Portfolio) Global Value Fund chose a pair of stocks from overseas companies in the second quarter of the year to enhance their $8.4 billion portfolio, new filings showed. More...

TIRE, FLOORING, FRANCE, SOUTH KOREA,


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Buzzi Looks Interesting With Selloff in Italy The Italian cement manufacturer has high profit margins and the stock is cheap on a price-earnings basis Tweedy Browne - Buzzi Looks Interesting With Selloff In Italy
Italian cement manufacturer Buzzi Unicem (BZZUF) (BZZUY) has been sold off with worries that Italy will quit the European Union. The company receives much of its profits from the U.S. and trades cheaply on a price-earnings basis. Buzzi looks interesting and the stock is down since January. More...

CEMENT, ITALY


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Tweedy Browne Comments on Hyundai Motor Group Guru stock highlight
Also, the Hyundai Motor Group (HKSE:005389) announced late in the quarter a major restructuring plan in an effort to streamline its complex ownership structure in response to pressure from the Korean government to reform powerful chaebols (family run conglomerates). The plan consists of a series of complex transactions that reorder the controlling family’s ownership interests. We are currently actively discussing with the Hyundai group the proposed transactions and evaluating the associated impact on the underlying intrinsic values of our holdings. More...

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Tweedy Browne Comments on WPP Guru stock highlight
WPP (NYSE:WPP), one of our newer holdings, was in the news late in the quarter as the company announced that it had hired a law firm to investigate allegations of personal misconduct by Martin Sorrell, the company’s CEO and one of Britain’s best known and highly acclaimed business leaders. The company stressed that any financial liabilities associated with the allegations are not material, and over the weekend of April 14, Sorrell announced his retirement. We continue to monitor the situation closely, but it is possible that this Board intrigue could result in changes at the company that might be beneficial to shareholders, such as streamlining the business and exiting noncore assets. The situation remains fluid. In our view, the company remains fundamentally a good business given its asset light nature and variable cost structure. It is significantly undervalued in our view, and currently has a dividend yield of nearly 5% while we wait for value recognition in its shares. More...

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Tweedy Browne Comments on Inchcape Guru stock highlight
Inchcape (INCH), our newest acquisition, is a small- to mid-cap ($4B) UK-based automotive distributor and retailer that functions like a franchisee or outsourced country manager allowing major automobile manufacturers to efficiently gain access to smaller markets (like Peru, Greece, Singapore, or even Hong Kong) that do not generate enough sales volume for the original equipment manufacturers (OEMs) to want to focus on them directly. In this role, Inchcape has the exclusive rights to sell a particular brand and its related parts in a particular country, controlling distribution and selecting and managing the dealer network in the country. It is an asset light business and as such has generated high returns on invested capital. At purchase, it was trading at less than 10 times earnings, 7-8 times enterprise value1 (EV) to earnings before interest, taxes, depreciation, and amortization (EBITA), carried very little debt, and had a dividend yield of approximately 3.6%. More...

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Tweedy Browne Fund 1st Quarter Shareholder Letter Discussion of holdings and market Tweedy Browne - Tweedy Browne Fund 1st Quarter Shareholder Letter
Volatility returned to global equity markets in the first quarter as stocks were buffeted by the first signs of wage pressure in the U.S., an uptick in interest rates (the yield on the 10-year U.S. Treasury note rose by approximately 50 basis points (.50%) in a matter of weeks), and by a host of additional macroeconomic worries including the prospects for continued global monetary tightening and increasing trade tensions between the U.S. and its trading partners. It is not surprising that, during a time of enhanced volatility in our markets, all but one of our Funds led their respective benchmark indices as of March 31 (through April, all four Funds were leading their respective benchmarks). More...

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6 Stocks With Negative Performances Vista Outdoor among companies with falling stock prices and returns PRIMECAP Management,Tweedy Browne - 6 Stocks With Negative Performances
While gurus hold positions in these companies, the stock price and returns continue to fall. These are the worst-performing stocks over the past three months with a long-term presence in at least four gurus’ portfolios. More...

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How to Analyze Companies, According to Benjamin Graham's Broker Tweedy Browne discusses how it looks at companies when analyzing investments Tweedy Browne, Warren Buffett - How To Analyze Companies, According To Benjamin Graham's Broker
In the world of value investing, Tweedy Browne (Trades, Portfolio) has a great reputation. The firm was Benjamin Graham's broker and also provided services for Walter Schloss and Warren Buffett (Trades, Portfolio). More...

VALUE, VALUE INVESTING, TWEEDY BROWN, WARREN BUFFETT, WALTER SCHLOSS, BENJAMIN GRAHAM


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Tweedy Browne Sells Comcast and Wells Fargo, Exits IBM Guru's largest sales of the 4th quarter Tweedy Browne - Tweedy Browne Sells Comcast And Wells Fargo, Exits IBM
Tweedy, Browne Company LLC, is a successor to Tweedy & Co. The firm sold shares in the following stocks during the fourth quarter. More...

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Tweedy, Brown Fund 4th Quarter Shareholder Letter Review of holdings and markets Tweedy Browne - Tweedy, Brown Fund 4th Quarter Shareholder Letter
“Animal spirits” were once again at large in global equity markets during the fourth quarter of 2017 as economic growth perked up in many parts of the globe and equity market returns followed in kind. All four Tweedy, Browne Funds made considerable financial progress during the quarter and the full calendar year, but trailed their respective benchmark indices due in large part to a healthy allotment of cash reserves and their continued low weighting in Japanese equities. For the full calendar year, the Funds produced absolute returns between 15.43% and 22.06%. More...

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Tweedy Browne Global Value Fund Sees Value in the UK Fund releases 4th-quarter portfolio Tweedy Browne, Tweedy Browne Global Value - Tweedy Browne Global Value Fund Sees Value In The UK
The Tweedy Browne Global Value Fund, part of New York-based investment firm Tweedy Browne (TradesPortfolio) Co. LLC, released its fourth-quarter 2017 portfolio this week, listing three new holdings. More...

TWEEDY BROWNE, GLOBAL, VALUE, 4Q,BUYS, UK


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Tweedy Browne Reduces Unilever, Halliburton, Berkshire Positions Guru’s largest sales of the 3rd quarter Tweedy Browne,Barrow, Hanley, Mewhinney & Strauss - Tweedy Browne Reduces Unilever, Halliburton, Berkshire Positions
Tweedy, Browne Company sold shares of the following stocks in the third quarter. More...

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What Has Worked in Investing? There are about 40 strategies for selecting stocks in the Tweedy Browne handbook. Here's my take Tweedy Browne - What Has Worked In Investing?
As the market continues to climb, it is easy to look for new ways to invest and potentially get off course. More...

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Tweedy Browne Fund 3rd Quarter Letter Neither Hurricane Irma’s 185 mile per hour winds nor North Korea’s threats of nuclear retaliation were enough to shake investor conviction during the quarter Tweedy Browne - Tweedy Browne Fund 3rd Quarter Letter
Neither Hurricane Irma’s 185 mile per hour winds nor North Korea’s threats of nuclear retaliation were enough to shake investor conviction during the quarter. Global equity markets continued their advance unabated, shrugging off a host of worries, not the least of which were increasingly high valuations, near term prospects for higher interest rates and coordinated tightening by central banks, a rising terrorism threat level, numerous natural disasters, and escalating geopolitical tensions. Such has been the enduring strength of what is now the second longest bull market in modern financial history. More...

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Dissecting Tweedy Browne's Holding of Swiss-Based Tamedia Tamedia holds the counterpart to many US online companies Tweedy Browne - Dissecting Tweedy Browne's Holding Of Swiss-Based Tamedia
Tamedia (XSWX:TAMN) is a Swiss print and online publisher that is a holding of Tweedy Browne (Trades, Portfolio). The company has many divisions that are similar to eBay (NASDAQ:EBAY), Ticketmaster, Monster.com and several other well-known U.S.-based online companies. Sales have gone nowhere for five years, but the company could look enticing to one of the many deep-pocketed U.S. online sellers. More...

SWITZERLAND, MEDIA, ONLINE RETAILERS


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These Unfortunate Facts Ensure Deep Value Will Outperform Value investing has had a terrible run in the US of late, so are value investors doomed to low returns going forward? We think these major Wall Street errors are part of the answer Mohnish Pabrai,Tweedy Browne - These Unfortunate Facts Ensure Deep Value Will Outperform
The evidence that value outperforms long term is compelling, but the question is why. And why do most professionals continue to ignore value strategies? More...

WARREN BUFFETT, PABRAI, NCAV, NET NETS, DEEP VALUE


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Tweedy Browne Patiently Awaits Phoenix Mecano The Swiss manufacturer has strong financials, but the stock hasn't done much Tweedy Browne - Tweedy Browne Patiently Awaits Phoenix Mecano
Tweedy Browne (Trades, Portfolio) is always a good place to mine for value ideas. Today we are looking at Switzerland-based Phoenix Mecano AG (XSWX:PM). The stock does not trade in the U.S., but is worth knowing about. More...

ELECTRICAL


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