Tweedy, Browne 1Q11 Investor Letter

Posted on 22/05/2011


As I’ve written before, one good way of finding good investment ideas is to plagiarise those of others.  My attention was brought to recent investment Expedia via Glenview Capital and before that to SINA by Eric Jackson.  My attention has recently been caught by the 1Q11 investor letter published by Tweedy, Browne, Inc, which I have embedded at the end of this post.  Tweedy, Browne is a mutual fund manager with a value-investing philosophy and has a long and successful history which includes links with Benjamin Graham and Warren Buffett.  From the company’s website:

Graham, through his investment firm Graham-Newman Corp., was one of the Firm’s primary brokerage clients in the 1930s, 1940s, and 1950s. It was through Graham that the original partners of the Firm developed brokerage relationships with investment legends Walter Schloss and Warren Buffett, and met Tom Knapp, who joined the Firm in 1957 from Graham-Newman and led its conversion from broker to investor.

The main focus of my interest in their latest quarterly letter is because despite being a US-based firm, many of their most recent investments have been in UK-based companies (the exact opposite of my own situation).  The companies in question are G4s (LON:G4s), the security services provider; cigarette manufacturer British American Tobacco (LON:BATS); and oil major Royal Dutch/Shell (LON:RDSA).  More detail on the investment rationale is provided in the letter.  I may do some further work on these companies over the next few weeks.

Posted in: Investment Ideas