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Tweedy, Browne 4th Quarter 2013 Commentary


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"Only one new position was established: Antofagasta, a UK-listed Chilean copper mining company. The company owns majority

interests in five copper mines in Chile and a railway, and we believe is a well run, low cost copper

producer with a strong balance sheet. The company is profitable, generates free cash flow, and pays a

dividend. While it is difficult to predict the direction of copper prices with any degree of certainty,

declining ore grades and mine closures across the world should have a meaningful effect on supply over

the next several years, resulting in better pricing in the future. At purchase, Antofagasta was trading at

approximately 6.2 times enterprise value to EBIT (earnings before interest and taxes), which was near its

52-week low, was in a net cash position and paid a dividend yield of 1.6%. "


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  • 3 months later...

Tweedy, Browne 1st Quarter 2014 Commentary


See attachment


Mystery buyer snatches East Hampton mansion for $145M




Architect Andrew Gordon gets control of late boyfriend Christopher Browne’s $260 million estate





A Career Spent Finding Value




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  • 5 months later...

For those who follow Tweedy:


The lackluster results for our Funds during the quarter were driven largely by significant declines in

our oil and gas related shares, as the price of oil as measured by Brent Crude declined approximately 17%

during the quarter. While we had some very nice returns in a few of our pharmaceutical, financial and defense

holdings, it was not enough to offset the declines in our energy related holdings. With declining oil prices

driving oil shares lower, it is easy to lose sight of the longer term fundamental case for oil and gas. While we

have no clue as to what will happen to oil prices in the short run, we believe over the longer term, the supply

demand equation for oil and gas should remain relatively tight, due to declining production curves, increasing

demand, and higher finding and development costs. At the margin, experts suggest that the marginal cost

today of finding and developing a barrel of oil is approximately $80 to $100. While Saudi Arabia remains a

significant unknown factor in the near term pricing of oil because of its ability to substantially increase or

decrease production, longer term trends remain, in our judgment, favorable.[...]




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