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Vinvesting.com is the leading social networking site for value investors where you can get the latest investment ideas, insights and interviews from great investors like Warren Buffett, Templeton etc. 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'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.
Christopher Browne is one of three members of the company's management committee and son of an early founder. He has recently written "The Little Book of Value Investing," which lays out the money management disciplines that have been so successful for Tweedy, Browne. In it, he argues the merit of buying "stocks on sale" and answers the obvious question: If value investing is so successful, and so simple, why doesn't everybody do it? (You'll have to buy the book.)
He says Tweedy, Browne eschews a top-down approach and instead looks for companies that would meet an updated version of Benjamin Graham's requirements.
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