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Over the last 70 years, value stocks clocked a 13.4% average annual return, vs. 10.2% for growth stocks, according to Ibbotson Associates.

Tweedy Browne

Tweedy, Browne : Digging for dividends

Submitted on 02/01/2008

Battered stocks with above-average dividends are gems in the rough for Tweedy, Browne Co. LLC.
For a new fund launched in September, the veteran managers in this value-focused firm search for stocks that are out of favor, looked poised to rebound, and carry high dividends. These regular payouts make waiting for a recovery in the shares easier.

"We're buying undervalued stocks that pay a very attractive yield," said Bob Wyckoff, managing director and member of Tweedy, Browne's investment committee.

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Christopher Browne : The prince of value

Submitted on 12/09/2007

Christopher Browne traces his investing approach directly back to Warren Buffett's guru, Ben Graham. Guess what? It still works. If there's such a thing as an aristocracy of American investing, Christopher Browne is a full member.

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Tweedy, Browne Launches New Global Dividend Fund

Submitted on 09/07/2007

Tweedy, Browne's first new fund in 14 years, Tweedy, Browne Worldwide High Dividend Yield Value, launched Wednesday. Its five-comanager team is the same one that manages  Tweedy, Browne Global Value (TBGVX). That foreign small/mid-value fund has struggled in recent years but still has a strong record.

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Tweedy, Browne's Secrets of Value Investing

Submitted on 09/06/2007

Tweedy, Browne is money management's equivalent of the Republican cloth coat: nothing flashy, ever dependable, transcending style. It is an organization that was founded in 1920 to deal in thinly traded stocks, and which in the 1950s realized that more money was to be made in owning such typically undervalued shares than in trading them. The firm began to take in outside funds in 1968 and has grown to manage more than $13 billion today.

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Tweedy, Browne Value Fund is Open Once More

Submitted on 05/15/2007

The Tweedy, Browne Value Fund is scheduled to re-open on May 15, 2007, after being closed for two years. The fund originally closed to new investors in May of 2005 due to the concern that that allowing new investors into the Funds could dilute the returns of existing shareholders.

Will Browne, one of the managers of the Fund, indicated that the addition of new assets to the Tweedy, Browne Value Fund could be managed effectively, without the risk of diluting the returns of existing shareholders. “The Fund’s cash position over the past two years has been reduced considerably and the Fund’s recent mandate change allows more flexibility and a wider selection of stocks to consider for investment as the Fund now can invest more than 20% of its assets outside the United States,” Mr. Browne said.

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Tweedy Browne 1st Quarter 2007 shareholder letter

Submitted on 04/20/2007

Tweedy Browne says "We cautioned against shrinking risk premiums and investor complacency in our capital markets. This is perhaps nowhere more evident than in the frenetic pace of merger and acquisition activity driven largely by private equity funds. In our view, this has led to an escalation in asset valuations, and a deterioration of credit standards of late, which is worrisome. For the time being, we are benefiting as a number of our portfolio holdings have become buyout targets, however, it could prove troublesome for our equity markets at some point if the credit cycle turns. While cash reserves were flat to down in both of our Funds during the quarter, we still have some buying power should the markets present us with pricing opportunities."
 
"In terms of portfolio activity, we added two new companies to the Fund during the quarter, HSBC Holdings, the large British bank that at purchase was trading just below 12x estimated earnings and with a dividend yield of 4.1%, and a small South Korean industrial company that was trading at purchase at less than 50% of intrinsic value. We are withholding the name, at least for the time being, while we continue to build our position in the company. In addition, we added to a number of pre-existing positions such as SK Telecom, the South Korean wireless communications company, and Mediaset, the Italian television broadcaster.
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Tweedy Browne 4th Quarter 2006 Letter

Submitted on 01/22/2007

For the last several years, it seems the world has been awash in a sea of liquidity caused at least in part by an abundance of low cost credit. This unprecedented level of free flowing cash has stimulated demand for virtually all financial asset classes - from traditional equities to emerging market debt to hedge funds and private equity. The result has been an across the board rise in financial asset prices and valuations, and an extraordinary decline in equity market volatility. It was recently reported in the Wall Street Journal that the Dow Jones Industrial Average has gone 912 trading days without as much as a 2% daily decline, the longest stretch of its kind in the index’s history. The market’s advance has engendered a somewhat worrisome degree of confidence and complacency among investors who have shrugged off Federal Reserve tightening, advancing oil prices, a declining dollar, the bursting of the housing bubble, and increasing geopolitical turmoil to take on increasing risk with lower expected returns. Risk premiums on the riskiest of financial assets have shrunk dramatically. To date, this willingness to take on increased risk for marginally better expected returns has paid off, with the riskiest asset categories producing the best returns, as evidenced by the record-shattering returns of the “BRIC” countries, i.e. Brazil, Russia, India and China. Last year, each of these emerging markets hit all time highs.

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The big money is in unfashionable shares

Submitted on 01/09/2007

Peter Shearlock reviews "The Little Book of Value Investing" by Christopher Browne. Peter says "I have been prompted into making some new year's resolutions by The Little Book of Value Investing, which Santa brought down the chimney with him this year". Written by Christopher Browne of US investment managers Tweedy Browne, it is both an investment primer and a highly readable account of a lifetime chasing undervalued shares.

Peter says "Now I am not a fan of "How to books ” especially those American ones with titles such as 101 Ways To Beat The Market And Become Instantly Attractive To The Opposite Sex. But Browne's book is an exception." It is written by an old hand who has put theory into practice to good effect over the years. It reminded me of first principles, from which one is prone to stray, and it sparked some new ideas.

Value investing is the art of finding underpriced shares of buying a dollar for 66 cents. Browne's dictum is to buy stocks as you would groceries when they are on sale.

 

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