Tweedy Browne: This is the Best Opportunity Set in 20+ Years

Tweedy, Browne Company LLC, based in Stamford, CT, is a value-based asset manager with an investment philosophy based on the work of Benjamin Graham. It was originally a broker, and one of its clients was Graham, co-author and author of the seminal textbooks on value investing: Security Analysis (1934) and The Intelligent Investor (1949). The firm also had brokerage relationships with Walter Schloss and Warren Buffett. Tweedy, Browne established its first investment account in the late 1950s, and began managing value oriented separate account investment portfolios in 1975 after registering as an investment advisor. The firm established its first mutual fund in the summer of 1993, and today serves as investment advisor to four mutual funds including its flagship, Tweedy Browne International Value Fund. It ceased operations as a broker-dealer in 2014.

As of September 30, 2023, its flagship fund, the Tweedy, Browne International Value Fund (TBGVX; it was previously called the Tweedy, Browne Global Value Fund until its name was changed effective July 29, 2021), has returned 8.28% annually since its inception in 1993. That is 180 basis points better than the hedged MSCI EAFE index and 255 basis points better than the foreign stock fund average (which is calculated by Tweedy, Browne based on data provided by Morningstar and reflects average returns of all mutual funds in the Morningstar Foreign Large-Value, Foreign Large-Blend, Foreign Large-Growth, Foreign Small/Mid-Value, Foreign Small/Mid-Blend, and Foreign Small/Mid-Growth categories).

I interviewed six members of Tweedy Browne’s investment team: Roger de Bree, John Spears, Tom Shrager, Bob Wyckoff, Jay Hill and Andrew Ewert.

The interview took place on November 17 over Zoom. I previously interviewed several members of the Investment Committee at Tweedy, Browne on February 5, 2019, when we discussed their investment philosophy, how they differentiate themselves, and their views on currency hedging. Please refer to that interview for information on those topics.

This interview contains forthright opinions and statements on securities, investment techniques, economic and market conditions and other matters. These opinions and statements are as of the date indicated, and are subject to change without notice. There is no guarantee that these opinions and statements are accurate or will prove to be correct, and some of them are inherently speculative. The adviser may be wrong in its assessment of a security’s intrinsic value. The information included in this interview is not intended, and should not be construed, as an offer or recommendation to bury or sell any security, not should specific information contained herein be relied upon as investment advice or statements of fact. This interview does not contain information reasonably sufficient upon which to base an investment decision.