Clyde Milton, editor of the excellent Cheap Stocks blog, noted the other day that Tweedy Browne & Company has closed both of its funds to new investors. He says:
"For those of you who are not familiar with Tweedy Browne, this firm once served as Ben Graham’s brokerage firm. They are true dyed in the wool value investors, seeking to buy firms well below intrinsic value: companies trading at low price to cash flow, low price to book, low P/E ratios, low price to sales ratios. They like management to have a stake in the company, and that insiders are buying, not selling. The Investment Research and Reports section of their website is a must for anyone interested in value investing. One report entitled "What Has Worked In Investing" provides excellent insight into the company’s investment philosophy, and even discusses one of the topics this site is devoted to—companies trading below their net current asset value."
I echo Milton's endorsement of Tweedy Browne. And it's also worth noting that Southeastern Asset Management, managers of the Longleaf Partners Funds, closed its three funds to new investors quite some time ago. Milton goes on to say, "Value isn’t dead, value never dies. Maybe it’s on hiatus. When it returns, the boys at Tweedy will pounce."
I've been doing a lot more selling than buying over the past year. There are some buying opportunities -- CG has discussed GM and FFH recently -- but holding a sizeable cash position and being patient is the smartest move right now.
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