"Tracking Tweedy Browne Portfolio – Q1 2022 Update"
"Tweedy Browne’s 13F portfolio value decreased from $3.15B to $3.10B this quarter.They added Ionis Pharma and Thor Industries and increased Intel while decreasing AutoZone, Cisco Systems, and Carlisle Companies.Alphabet at ~19% 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 5/13/2022. Please visit our  series to get an idea of their investment philosophy and our  for the fund’s moves during Q4 2021.This quarter, Tweedy Browne’s 13F portfolio value decreased marginally from ~$3.15B to ~$3.10B. The number of holdings increased from 42 to 44. The largest position by far is Alphabet at ~19% of the portfolio. The largest five individual stock positions are Alphabet, Berkshire Hathaway, Johnson & Johnson, FMC Corp, and AutoZone. Combined they are at ~55% of the portfolio. 31 of the 44 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 International Value Fund (TBGVX) has a global orientation with non-US allocation at ~80% of the portfolio and cash at ~4%. The top five holdings are Nestle (NSRGY), Diageo plc (DEO), CNH Industrial (CNHI), Roche Holding AG (RHHBY), and Berkshire Hathaway (BRK.B). Together, they are at ~21% of the fund. Per Q1 2022 Commentary, the fund returned Negative 3.27% for Q1 2022 compared to Negative 3.51% for MSCI EAFE. Since inception (1993), annualized returns are at 8.67% compared to 6.41% for MSCI EAFE.New Stakes:Ionis Pharma (IONS) and Thor Industries (THOR): IONS is a fairly large 3.50% of the portfolio position purchased this quarter at prices between ~$30 and ~$37 and the stock currently trades above that range at $39.34. The small 0.59% of the portfolio THO stake was established at a cost-basis of ~$94 per share. The stock is now trading well below that at $79.32.Stake Increases:Bank of America (BAC) and Truist Financial (TFC): BAC is a 2.57% of the portfolio position established in H2 2020 at prices between ~$23 and ~$30 and it is now at $32.35. The 1.54% TFC stake was purchased in H2 2020 at prices between ~$33.50 and ~$49 and the stock currently trades at $48.57. Both positions saw minor increases this quarter.Intel Corp (INTC): INTC is a ~2% of the portfolio stake established in H2 2020 at prices between ~$44 and ~$61. There was a stake doubling over the last two quarters at prices between ~$44.50 and ~$56. The stock is now well below those ranges at $38.63.Fresenius Medical Care (FMS): FMS is a small ~1% of the portfolio stake established in Q1 2021 at prices between ~$34 and ~$43. There was a ~14% stake increase in next quarter at prices between ~$36.70 and ~$42. That was followed with a ~40% stake increase in Q3 2021 at prices between ~$35 and ~$42. Last quarter also saw a ~20% stake increase at prices between ~$30 and ~$36. The stock currently trades at $25.45. There was a marginal increase this quarter.Progressive Corp (PGR) and Verizon Communications (VZ): These two very small (less than ~0.6% of the portfolio each) stakes were increased this quarter.Stake Decreases:Alphabet Inc. (GOOG) (GOOGL): GOOG is currently the largest 13F stake at ~19% of the portfolio. It was first purchased in 2012 at much lower prices compared to the current price of ~$2333. Q3 2016 saw a ~9% trimming at prices between $692 and $787. That was followed with a ~10% trimming in Q3 2021. This quarter saw marginal trimming.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 ~18% 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. The five quarters through Q3 2021 had seen a ~15% selling at prices between ~$200 and ~$292. The stock currently trades at ~$278. There was minor trimming in the last two quarters.Johnson & Johnson (JNJ): JNJ is a large (top three) position in the portfolio at ~9%. 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 has seen minor selling in most quarters. Q4 2016 saw a ~20% reduction at prices between $111 and $120. The share count is now at ~1.56M. The stock currently trades at ~$182. Tweedy Browne is harvesting long-term gains from this position.FMC Corporation (FMC): FMC is a ~5% of the portfolio position established in Q3 2021 at prices between ~$88 and ~$109. There was a ~20% stake increase last quarter at prices between ~$88 and ~$110. The stock currently trades at ~$109. There was marginal reduction this quarter.AutoZone (AZO): AZO is a 4.82% 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 ~$2169. Q1 2019 saw a one-third selling at prices between $810 and $1000. Since then, the stake was reduced by another ~40% at prices between ~$728 and ~$2096. Tweedy Browne is harvesting gains.Coca Cola FEMSA (KOF): The 4.76% 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 $59.15.Note: Tweedy Browne has a ~4.8% ownership stake in the business.Wells Fargo (WFC): WFC is a 3.19% 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. Last three years have seen another ~23% selling at prices between ~$22 and ~$58. The stock is now at $40.24.Cisco Systems (CSCO): CSCO position was first purchased in 2011. It is currently a ~3% 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. The last five quarters also saw a two-thirds reduction at prices between ~$45 and ~$63. The stock currently trades at ~$44. They are harvesting gains.Bank of New York Mellon (BK): BK is a 2.81% 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. The three quarters through Q2 2021 had seen a ~50% reduction at prices between ~$34 and ~$52. The stock currently trades at $43.06. There was minor trimming in the last three quarters.Autoliv Inc. (ALV): The 2.77% ALV position was established in Q1 2020 at prices between ~$40 and ~$82 and the stock currently trades at $76.86. Last two years have seen only minor adjustments.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 $30.52, and the stake is at 2.57% of the portfolio.US Bancorp (USB): The 1.84% 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 $47.25. There was a ~12% trimming in the last six quarters.3M Company (MMM): MMM is a 1.66% 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 two years have seen similar trimming. The stock is now at ~$133.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 $39.83, and the stake is at 1.59%. Last seven quarters have seen only minor adjustments.Note: The prices quoted above are adjusted for the 2-for-1 stock-split in February 2017.CNH Industrial (CNHI), Concentrix Corp (CNXC), Carlisle Companies (CSL), ConocoPhillips (COP), Diageo plc (DEO), Morgan Stanley (MS), Union Pacific (UNP), and Unilever (UN) (UL): 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 2022:Source: John Vincent. Data constructed from Tweedy Browne's 13F filings for Q4 2021 and Q1 2022.Info from Commentary – Q4 2021: PERFORMANCE – Flagship International Value Fund - TBGVX – 15.59% vs 19.43% for MSCI EAFE (hedged to USD) for 2021– from 1993 inception 8.87% vs 6.60%. ACTIVITY IN INTERNATIONAL VALUE & VALUE FUNDS: ADDS: Vertex Pharma & Johnson Electric. EXITS & REDUCTIONS: Alten, Bystronic, Siemens, Carlisle, Diageo, Nestle, and Zurich Insurance. INCREASED – Alibaba, Lassonde, BASF, Intel, and Rubis. Commentary – believes economic recovery, inflation, etc. favor value stock – believes rotation to value is ongoing and sustainable . Vertex Pharma – rare disease portfolio with cystic fibrois drug as flagship – 2030-37 patent expiry gives good runway and many drugs in early-stage pipeline. Buybacks and insider-buying as well. Estimated intrinsic value is $240-$250 against the fund’s weighted average cost of $187. Some ESG commentary. Also thinks the move away from tech-growthy names to value oriented global names is accelerating. Top Holdings: Nestle (NSRGY), Diageo plc (DEO), CNH Industrial (CNHI), Roche Holding (RHHBY), and Heineken (HKHHF). Together, they are at ~21% of the fund.July 9, 2021: Global Value Funds  as International Value Funds.Regulatory filings from 11/12/2021 thru 2/13/2022: 13G – 1/11 – KOF – Coca-Cola FEMSA – 2.78M shares – 5.29% of business."