"Tracking Tweedy Browne Portfolio – Q1 2021 Update"
"Tweedy Browne’s 13F portfolio value increased from $2.95B to $3.44B this quarter.They increased Alibaba Group Holdings while reducing Baidu, Cisco Systems, and ConocoPhillips.Alphabet Inc. at ~15% of the portfolio is the largest position.This article is part of a series that provides an ongoing analysis of the changes made to Tweedy Browne’s 13F portfolio on a quarterly basis. It is based on Tweedy Browne’s regulatory  filed on 5/7/2021. Please visit our  series to get an idea of their investment philosophy and our  for the fund’s moves during Q4 2020.This quarter, Tweedy Browne’s 13F portfolio value increased ~16% from $2.95B to $3.44B. The number of holdings decreased from 48 to 46. The largest position is Alphabet at ~15% of the portfolio. The largest five individual stock positions are Alphabet, Berkshire Hathaway, Johnson & Johnson, Alibaba Group Holdings, and Baidu. Combined they are at ~50% of the portfolio. 31 of the 46 13F stakes are significantly large (over ~0.5% of the 13F portfolio each) and they are the focus of this article.Tweedy Browne has released a number of  over the years and that is a valuable resource for anyone looking to learn from their value investing philosophy. Also, Christopher Browne authored the book “”, a great introduction.Note: Tweedy Browne’s flagship Tweedy Browne Global Value Fund (TBGVX) has a global orientation with non-US allocation at ~82% of the portfolio and cash at ~6%. The top five holdings are Nestle (NSRGY), Diageo plc (DEO), CNH Industrial (CNHI), Roche Holding (RHHBY), and Heineken (HKHHF). Together, they are at ~20% of the fund. Per Q1 2021 Commentary, the fund returned 7.14% for Q1 2021 compared to 7.63% for MSCI EAFE. Since inception (1993), annualized returns are at 8.83% compared to 6.39% for MSCI EAFE.New Stakes:Fresenius Medical Care (FMS): FMS is a small 0.57% of the portfolio stake established this quarter at prices between ~$34 and ~$43 and the stock currently trades at ~$39.50.Stake Disposals:Goldman Sachs (GS): The small ~1% GS stake saw a roughly one-third increase last quarter at prices between ~$189 and ~$264. It was disposed this quarter at prices between ~$264 and ~$349. It currently trades at ~$354.Stake Increases:Alibaba Group Holdings (BABA): BABA is a large (top five) 7.32% of the portfolio stake established last quarter at prices between ~$222 and ~$317 and increased by two-thirds this quarter at prices between ~$225 and ~$271. The stock currently trades near the low end of that range at ~$220. For investors attempting to follow, BABA is a good option to consider for further research.Stake Decreases:Alphabet Inc. (GOOG) (GOOGL): GOOG is currently the largest 13F stake at ~15% of the portfolio. It was first purchased in 2012 at much lower prices compared to the current price of ~$2239. Q3 2016 saw a ~9% trimming at prices between $692 and $787. Since then, the activity has been minor.Berkshire Hathaway (BRK.A) (BRK.B): Berkshire Hathaway is a very long-term stake that has been in the portfolio since before the financial crisis. It is currently their second-largest position at ~14% of the portfolio. Back in 2009, it was a very small 0.60% of the portfolio position. The bulk of the current stake was purchased in 2010 and 2012 at prices between $65 and $90. Q3 2016 saw a ~42% reduction at prices between $142 and $151 while the pattern reversed next quarter: ~37% increase at prices between $143 and $167. Last several quarters have seen minor trimming. The stock currently trades at ~$283.Johnson & Johnson (JNJ): JNJ is a large (top three) position in the portfolio at 8.43%. It is a long-term stake. The position was built from 400K shares to just over 4.3M shares between 2009 and 2012 at prices between $48 and $72. Since then, the stake had seen minor selling in most quarters. Q4 2016 saw a ~20% reduction at prices between $111 and $120. The share count is now at ~1.76M. The stock currently trades at ~$168. Tweedy Browne is harvesting long-term gains from this position.Baidu Inc. (BIDU): BIDU is a large ~6% portfolio stake purchased in Q1 2017 at prices between $168 and $186. The position was increased by roughly two-thirds in Q2 2019 at prices between $108 and $185. Next quarter saw an about turn: 40% selling at prices between $94 and $119. Since then, the activity had been minor. This quarter saw a ~30% reduction at prices between ~$204 and ~$340. The stock is now at ~$183.Cisco Systems (CSCO): CSCO position was first purchased in 2011. It is currently a ~6% of the portfolio stake. The bulk of the position was purchased in 2012 at prices between $15.50 and $21. Q1 2016 saw a ~45% stake increase at prices between $22.50 and $28.50. The three years thru Q1 2019 saw a ~44% reduction at prices between $41 and $54. Next quarter saw another ~25% selling at prices between $51 and $57.50. This quarter also saw a ~20% trimming at prices between ~$44 and ~$53. The stock currently trades at ~$52. They are harvesting gains.Bank of New York Mellon (BK): BK is a ~4% stake first purchased in 2010 in the mid-20s price range. Q1 2016 saw a ~40% stake increase at prices between $32.50 and $38. There was a ~11% selling in Q3 2016 at prices between $37 and $42. Since then the activity had been minor. Last quarter saw a ~18% reduction at prices between ~$34 and ~$42.50. The stock currently trades at ~$51. This quarter also saw a ~4% trimming.Coca Cola FEMSA (KOF): The 3.81% KOF stake was built over the three quarters thru Q2 2020 at prices between $38 and $65. Since then, the activity has been minor. The stock currently trades at ~$47.Note: Tweedy Browne has a ~5% ownership stake in the business.AutoZone (AZO): AZO is a 3.67% position purchased in Q3 2017 at prices between $493 and $595 and increased by ~75% in Q2 2018 at prices between $596 and $693. The stock currently trades well above those ranges at ~$1496. Q1 2019 saw a one-third selling at prices between $810 and $1000 and that was followed with a ~11% trimming next quarter. Last seven quarters have also seen minor selling. Tweedy Browne is harvesting gains.Autoliv Inc. (ALV): The ~3% ALV position was established in Q1 2020 at prices between ~$40 and ~$82 and the stock currently trades at ~$97. Last three quarters have seen minor trimming.Wells Fargo (WFC): WFC is a 2.69% of the 13F portfolio position. The initial stake was established in 2010 with the bulk of the current position purchased in 2011 at prices between $25 and $34. H2 2016 saw a ~30% reduction at prices between $44 and $58. The next two years had also seen minor selling. Q1 2019 saw a ~15% further reduction at prices between $46 and $52. The stock is now at ~$45.50. There was minor trimming over the last two years.Fox Corporation (FOX): The FOX stake was a minutely small position established in Q2 2019. Next quarter saw the stake built at prices between $31.50 and $38. There was a ~15% stake increase in Q4 2019 and that was followed with a ~72% increase next quarter at prices between ~$20 and ~$38.50. Since then, the activity has been minor. The stock currently trades at ~$36.50 and the stake is at 2.56% of the portfolio.Note: Tweedy Browne’s Q3 2020 commentary said that they purchased FOX at a price estimated to be at 8% earnings yield. Also, they mentioned the focus on live programming, profitability of Fox News, and insider buying as attractive attributes.Bank of America (BAC), Truist Financial (TFC), Carlisle Companies (CSL), and Intel Corp (INTC): These four positions were built in H2 2020. BAC is a 2.20% of the portfolio position established at prices between ~$23 and ~$30 and it is now at ~$41. The 1.47% TFC stake was purchased at prices between ~$33.50 and ~$49 and the stock currently trades at ~$59.50.  The ~1% of the portfolio CSL position was purchased at prices between ~$270 and ~$319 and the stock currently trades at ~$187. INTC is a 1.20% of the portfolio stake established at prices between ~$44 and ~$61 and it is now at ~$53.50.3M Company (MMM): MMM is a ~2% long-term stake first purchased in 2008 at low prices. The five quarters thru Q2 2017 had seen a combined ~46% reduction at prices between $165 and $213. There was a ~8% selling in Q4 2017 and that was followed with a ~18% reduction next quarter at prices between $215 and $259. The five quarters thru Q3 2019 had also seen a ~15% combined selling at prices between $160 and $220. Q1 2020 saw a ~12% stake increase while last four quarters there was minor trimming. The stock is now at ~$199.US Bancorp (USB): The 1.90% USB position had seen a ~45% increase over the first three quarters of 2020 at prices between ~$29 and ~$59. The stock is now at ~$59.50. There was minor trimming in the last two quarters.Comcast Corporation (CMCSA): CMCSA is a very long-term stake that has been in the portfolio since before the financial crisis. Recent activity follows: There was a two-thirds reduction in Q4 2017 at prices between $35 and $41. Q4 2018 also saw a ~23% selling at prices between $33 and $39.50. Q2 2020 saw an about turn: ~140% stake increase at prices between $32.50 and $43. The stock is now at ~$56.50 and the stake is at 1.80%. Last three quarters have seen only minor adjustments.Note: The prices quoted above are adjusted for the 2-for-1 stock-split in February 2017.Emerson Electric (EMR): EMR is a long-term 1.39% stake. The position was first purchased in 2008 and doubled the following year at a cost-basis in the low-30s. Around 40% of that original position was sold in 2010 in the low-50s price-range. It has since been further reduced. Q4 2016 saw a ~20% selling at prices between $49 and $58 and that was followed with a ~20% reduction in 2017 at prices between $56 and $70. Next year saw another ~35% selling at prices between $55 and $80. The stock currently trades at ~$93. Last two years have also seen minor trimming.AbbVie Inc. (ABBV): ABBV is a 1.23% of the portfolio position established in Q2 2020 at prices between $73 and $99 and it is now at ~$115. Q3 2020 saw a ~50% stake increase at prices between ~$86 and ~$101. That was followed with a ~30% increase next quarter at prices between ~$81 and ~$109. There was marginal trimming this quarter.ConocoPhillips (COP): COP was a 1.6M share stake built in 2009 at prices between $22 and $40. The position had seen minor trimming since 2016. Q3 2020 saw the stake reduced to a minutely small position at prices between $32.50 and $42. The stock currently trades at ~$55.50. Last two quarters have seen further selling.Note: The figures quoted above are adjusted for the May 1, 2012 COP spinoff of Phillips 66 whereby COP shareholders received one share of Phillips 66 for every 2 shares of COP.Morgan Stanley (MS): The small 0.91% MS stake was purchased in Q2 2020 at prices between $31.50 and $50.50 and the stock currently trades at ~$83.50. Last three quarters have seen only minor adjustments.American Express (AXP), Diageo plc (DEO), Union Pacific (UNP), Unilever (UN) (UL), and Verizon Communications (VZ): These small positions (less than ~1.5% of the 13F portfolio each) were reduced during the quarter.Note: Although the 13F position is small, the firm has a large stake in Diageo held in LSE.The spreadsheet below highlights changes to Tweedy Browne’s 13F stock holdings in Q1 2021:Source: John Vincent. Data constructed from Tweedy Browne's 13F filings for Q4 2020 and Q1 2021.Info from Commentary – Q4 2020: PERFORMANCE – Flagship Global Value Fund - TBGVX – -1% vs 2.5% for MSCI EAFE (hedged to USD) for 2020 – from 1993 inception 8.64% vs 6.16%. ACTIVITY IN GLOBAL VALUE & VALUE FUNDS: ADDS: Conzetta, Enterprise Products, Rubis, Megacable Holdings, Alten, Fukunda Denshi, Kamigumi, A-Living, and Alibaba. EXITS: Antofagasta plc, ConocoPhillips, Phillips 66, Royal Dutch Shell.  TRIMMED – Chokwang Paint, Mediaset, Royal Dutch, HSBC, etc. INCREASED – Alliance Global, Astellas Pharma, CK Hutchison, Dali Foods, and Intel. Commentary – bullish thesis on Rubis – buybacks, strong 4.7%, and discounted valuation.Regulatory filings thru 12/13/2020: 13G – 2/2 – KOF – 2.85M shares – 5.43% of business."