04 Nov 2010 Tweedy Browne - Q3 2010 Commentary ( Portfolio )
One positive outcome of the financial crisis has been the opportunity to increase our exposure to some of the very “best” global businesses, at attractive prices. These businesses operate on a worldwide basis, with globally recognized brands, the financial strength to weather difficult macroeconomic conditions, and a large and growing exposure to the faster growing half of the world. These companies trade at reasonable valuations and many have current yields in excess of 3%.

As bottom-up stock pickers, our forward view regarding equity returns is informed by valuation. With that in mind, global equity valuations, while not extraordinarily cheap, do appear to be quite reasonable. When the fog of uncertainty surrounding the current economic and political climate inevitably clears, we feel that our portfolio will be well positioned to take advantage of a sustainable global recovery.