Tweedy Browne (Trades, Portfolio) Global Value Fund focuses on investing in non-U.S. companies that have long-term growth. The Fund also uses intrinsic value to determine a company's collateral value, which was acquired through the late Benjamin Graham.
The Fund currently owns 96 positions, valued around $6.64 billion and has a 3% quarter-over-quarter turnover. Here are the top most heavily weighted international stocks in Tweedy's Global portfolio.
Standard Chartered PLC (LSE:STAN, Financial)
Standard Chartered consists of 4.89% of Tweedy's overall portfolio, with 19,993,500 shares valued at $324,553,000.
The company was incorporated in 1969 and is in the retail and commercial banking business. There are two businesses –Â Consumer Banking and Wholesale Banking –Â that offer banking products and services to customers.
According to the DCF calculator, STAN's intrinsic value is £9.31 a share with a -14% margin of safety, which indicates the stock may be overvalued. It is currently trading at £10.65 a share.
EBITDA per share for the trailing twelve months as of December 2014 was £1.23 and its growth rate for the past 10years was 11.80% per year.
Novartis AG (XSWX:NOVN, Financial)
The second-largest international position in Tweedy's portfolio is Novartis, which consists of 4.56% of the portfolio. The Fund currently owns 3,057,000 shares, valued at $302,616,000.
Novartis researches, markets, develops and manufactures pharmaceutical and healthcare products. It was incorporated in 1995.
According to the DCF calculator, NOVN's intrinsic value is CHF37.40, which indicates the stock may be overvalued, as it is currently trading at CHF99.20.
One warning sign investors should be aware of is the P/E ratio of 26.08 is currently close to its 10-year high, which was 25.60.
EBITDA for the trailing 12 months as of December 2014 was CHF6.42 a share and its growth rate for the year was 13.70%. The growth rate for the past 10 years was 1.80% a year. The chart above shows the company's EBITDA growth rate for the past ten years.
Roche Holding AG (XSWX:ROG, Financial)
The third-largest international position in the Fund's portfolio is Roche Holding AG, which consists of 4.51% of it; Tweedy currently owns 1,084,000 shares, valued at $299,208,000.
Roche is a pharmaceutical and diagnostic company that was founded in 1896. The stock is currently trading at CHF273.80.
According to the DCF calculator, ROG's fair value is CHF111.38, which means the stock may be currently overvalued.
EBITDA per share for the trailing 12 months as of December 2014 was CHF20.38 and its growth rate for the past 10 years was 4.70% a year.
Book value per share was CHF23.05, hence the P/B ratio is currently 11.88. which is close to its one-year low of 10.71 and a good sign for investors.
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