Thursday, January 11, 2007

Tweedy Browne's principles to value investing

For those in the investing community, they might know who Tweedy Browne is. Tweedy Browner used to be a brokerage executing trades for Ben Graham, the father of value investing. And since then, Tweedy has been raking returns of around 15 - 20% for the past 20 years or so. Impressive isnt it? And so here it is, certain principles of Tweedy Browne that we can all apply:

1. Low price in relation to assets

2. Low PE

3.Insider Purchases

4.Significant decline in stock price

5.Small market Capitalization

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