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WealthTrack TV Interview

The Culture of Value Investing From Ben Graham's & Warren Buffett's Former Brokerage Firm

In a wide-ranging interview on the PBS show, WealthTrack, hosted by Consuelo Mack, two of Tweedy, Browne's managing directors explain their Benjamin Graham-based approach to investing. (June 14, 2019)

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The above webcast is an excerpt from a Wealthtrack broadcast that appeared on June 14, 2019. The webcast is provided for your convenience only.

From its inception through July 28, 2021, the Tweedy, Browne International Value Fund was known as the Tweedy, Browne Global Value Fund. All references to the Tweedy, Browne Global Value Fund in this interview should be deemed to refer to the Tweedy, Browne International Value Fund.

The average annual total returns of the International Value Fund for the 1-, 5-, and 10-year periods ending June 30, 2022, were -8.56%, 2.75%, and 5.80%, respectively. Since inception, returns for the International Value Fund and its benchmark, the MSCI EAFE Index (Hedged to US$), were 8.28% and 6.08%, respectively. The MSCI EAFE Index is an unmanaged, free float-adjusted capitalization weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Index (Hedged to US$) consists of the results of the MSCI EAFE Index 100% hedged back into U.S. dollars and accounts for interest differentials in forward currency exchange rates. Index results are inclusive of dividends and net of foreign withholding taxes. Index figures do not reflect any deduction for fees, expenses or taxes. Investors cannot invest directly in an index, unlike an index fund. As disclosed in the Fund's most recent prospectus, the Fund's total annual operating expense ratios were 1.38% (gross) and 1.34% (net).

The preceding performance data represents past performance and is not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data shown. Please Click Here to obtain performance data that is current to the most recent month end, or to obtain after-tax performance information. The International Value Fund does not impose any front-end or deferred sales charges. As of June 30, 2022 the International Value Fund was ranked in the top 14% (out of 344 Funds in the Morningstar Foreign Large Value Funds Category) for the 1-year period; the top 15% (out of 292 Funds in the category) for the 5-year period; the top 11% (out of 175 Funds in the category) for the 10-year period; the top 1% (out of 117 Funds in the category) for the 15-year period; and the top 9% (out of 65 Funds in the category) for the 20-year period.

Morningstar has ranked the Global Value Fund among its peers in the Foreign Large Value Category. Percentile rank in a category is the Fund's total-return percentile rank relative to all funds that have the same Morningstar Category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. The "out of" number represents the total number of funds in the category for the listed time period. Percentile rank in a category is based on total returns, which include reinvested dividends and capital gains, if any, and exclude sales charges. (The Morningstar Foreign Large-Value Category consists of portfolios that invest mainly in big international stocks that are less expensive or growing more slowly than other large-cap stocks. Most of these portfolios divide their assets among a dozen or more developed markets, including Japan, Britain, France, and Germany. These portfolios primarily invest in stocks that have market caps in the top 70% of each economically integrated market (such as Europe or Asia ex-Japan). Value is defined based on low valuations (low price ratios and high dividend yields) and slow growth (low growth rates for earnings, sales, book value, and cash flow). These portfolios typically will have less than 20% of assets invested in U.S. stocks.)

As of June 30, 2022, the Fund holds an overall five-star rating out of 316 Foreign Large Value Funds and a bronze rating from Morningstar. For the 3-, 5-, and 10-year periods ending June 30, 2022, the Fund received a four-star rating (out of 316 Funds), a five-star rating (out of 292 Funds), and a five-star rating (out of 175 Funds), respectively. Morningstar rates mutual funds from one to five stars based on how well they've performed (after adjusting for risk and accounting for all sales charges) in comparison to similar funds. Within each Morningstar Category, the top 10% of funds receive five stars, the next 22.5% four stars, the middle 35% three stars, the next 22.5% two stars, and the bottom 10% receive one star. Funds are rated for up to three time periods - 3, 5, and 10 years - and these ratings are combined to produce an overall rating. Funds with less than three years of history are not rated. Morningstar medalist ratings reflect a Morningstar analyst's qualitative assessment of a fund's future prospects. This is different than the star rating, which is purely quantitative and backward-looking. The Analyst Rating is based on the analyst's conviction in the fund's ability to perform better than similar funds over the long term. Morningstar assigns the ratings on a five-tier scale with three positive (Medalist) ratings of Gold, Silver, and Bronze; a Neutral rating; and a Negative rating. If a fund receives a Gold, Silver, or Bronze Medalist rating, that means Morningstar expects it to perform better than similar funds over a full market cycle of at least five years. Morningstar ratings are objective, based entirely on a mathematical evaluation of past performance. They're a useful tool for identifying funds worthy of further research, but shouldn't be considered buy or sell recommendations.

Tweedy, Browne was named Morningstar International Stock Fund Manager of the Year with respect to the Global Value Fund (has since been renamed "International Value Fund") in 2000 and 2011. Established in 1988, the Morningstar Fund Manager of the Year awards recognize portfolio managers who demonstrate excellent investment skill and the courage to differ from the consensus to benefit investors. To qualify for the award, managers' funds must have not only posted impressive returns for the year, but the managers also must have a record of delivering outstanding long-term risk-adjusted performance and of aligning their interests with shareholders'. The Fund Manager of the Year award winners are chosen based on Morningstar's proprietary research and in-depth qualitative evaluation by its fund analysts.

As of June 30, 2022, the International Value Fund and Value Fund had each invested the following percentages of their net assets in the following holdings: AIG (0.0%, 0.0%); Alphabet (Google) (5.2%, 4.1%); Amazon (0.0%, 0.0%); Apple (0.0%, 0.0%); Berkshire Hathaway (3.0%, 6.1%); Diageo (4.0%, 2.7%); Facebook (0.0%, 0.0%); Heineken (2.7%, 2.3%); Nestle (5.2%, 3.4%); Netflix (0.0%, 0.0%); Novartis (1.2%, 1.1%); Roche (3.1%, 2.5%); Standard Chartered (0.0%, 0.0); TotalEnergies (3.5%, 3.1%); and Zurich Insurance (2.0%, 0.5%). Portfolio holdings are subject to change. The performance of any single portfolio holding is no indication of the performance of other portfolio holdings or of the International Value or Value Funds.

The Global Value Fund and Value Fund each held AIG in their portfolios from 2004 through 2008. The Global Value Fund sold its last shares of AIG on September 15, 2008, and the Value Fund sold its last shares of AIG on August 4, 2008. As of February 23, 2021, Standard Chartered was trading at approximately $5.05, or approximately 13 times expected 2021 earnings. The company has an 8% return on tangible equity target for 2023. If the company reaches this target, the company would earn $1 per share, which equates to a P/E of approximately 5x earnings.

Investment decisions for the International Value and Value Funds are made by Tweedy, Browne's Investment Committee, which is comprised of Roger R. de Bree, Andrew Ewert, Frank H. Hawrylak, Jay Hill, Thomas H. Shrager, John D. Spears and Robert Q. Wyckoff. These individuals are jointly and primarily responsible for the day-to-day management of the Funds' portfolios. In the webcast, Will Browne and John Spears candidly discuss individual securities. The views expressed in the webcast are subject to change at any time based on market and other conditions. Much of the information in this webcast represents the opinions of Will Browne and John Spears as Investment Committee members, and is not intended to be a forecast of future events, a guarantee of future results, or investment advice. Views expressed may differ from those of the Investment Committee or of Tweedy, Browne as a whole. Discussion of any particular security or fund by a Wealthtrack commentator or a Tweedy, Browne employee does not constitute information reasonably sufficient upon which to base an investment decision, should not be considered a recommendation to purchase or sell any particular security, and should not be considered an offer for any of the securities referenced. The information in this webcast is not guaranteed as to its accuracy or completeness. This webcast is not an offer to sell any security nor is it a solicitation of an offer to buy any security.

Current and future portfolio holdings are subject to risk. The securities of small, less well-known companies may be more volatile than those of larger companies. In addition, investing in foreign securities involves additional risks beyond the risks of investing in securities of U.S. markets. These risks, which are more pronounced in emerging markets, include economic and political considerations not typically found in U.S. markets, including currency fluctuation, political uncertainty and different financial standards, regulatory environments, and overall market and economic factors in the countries. Force majeure events such as pandemics and natural disasters are likely to increase the risks inherent in investments and could have a broad negative impact on the world economy and business activity in general. Value investing involves the risk that the market will not recognize a security's intrinsic value for a long time, or that a security thought to be undervalued may actually be appropriately priced when purchased. Dividends are not guaranteed, and a company currently paying dividends may cease paying dividends at any time. Diversification does not guarantee a profit or protect against a loss in declining markets. Investors should refer to the prospectus for a description of risk factors associated with investments in securities held by the Funds.

Although the practice of hedging against currency exchange rate changes utilized by the Tweedy, Browne International Value Fund and Tweedy, Browne Value Fund reduces the risk of loss from exchange rate movements, it also reduces the ability of the Funds to gain from favorable exchange rate movements when the U.S. dollar declines against the currencies in which the Funds' investments are denominated and in some interest rate environments may impose out-of-pocket costs on the Funds.

Tweedy, Browne Company LLC ceased its operations as a broker-dealer on September 30, 2014. As noted in the webcast, the firm brokered certain stock transactions for Benjamin Graham and Warren Buffett.

©2022 Morningstar, Inc. All Rights Reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damage or losses arising from any use of this information.

Tweedy, Browne International Value Fund and Tweedy, Browne Value Fund are distributed by AMG Distributors, Inc., Member FINRA/SIPC.

This material must be preceded or accompanied by a prospectus for Tweedy, Browne Fund Inc.