Tweedy, Browne: “What Has Worked in Investing”
Many individual investors embody value investing—Benjamin Graham and Warren Buffett immediately come to mind. Among investment management firms, perhaps none is as devoted a follower of the principles of value investing as Tweedy, Browne Company.
In his book “Smarter Stock Picking” (FT Press, 2010), David Stevenson wrote: “Graham may be the patron saint of most value-based investors, but it’s Tweedy, Browne who are the Jesuits—the brains behind the scene who bother to work it all out and put it into practice.”
In this article
- The “What Has Worked” Criteria
- Assets Bought Cheap
- Earnings Bought Cheap
- Other Characteristics
- Investing With the Inner Circle
- Stocks Price Declines
- Small-Cap Stocks
- Building a Stock Screen
- Profile of Passing Companies
- Stocks on the List
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In 1992, Tweedy, Browne published “What Has Worked in Investing: Studies of Investment Approaches and Characteristics Associated With Exceptional Returns,” a paper outlining many of the key characteristics of their own long-term investment portfolios. This article, which was revised in 2009, is available for free from the Tweedy, Browne website: www.tweedy.com/resources/library_docs/papers/WhatHasWorkedInInvesting.pdf.
In this article we discuss the characteristics Tweedy, Browne looks for in its investments and build a stock screen based on these elements.
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