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Tweedy, Browne highlights value discipline rooted in Ben Graham

The firm says its approach centers on buying stocks at a discount to intrinsic value, using a “margin of safety” framework it traces to Ben Graham.

Reported · Written up by our desk · Fund Industry

Tweedy, Browne Managing Directors Jay Hill, CFA, and Jason Minard, CFP, discussed the firm’s history and investment approach in a conversation with the VettaFi team, emphasizing its long-running value orientation.

According to Minard, the firm’s roots date to 1920 and include time as Ben Graham’s broker, with offices historically located in the same building as Graham. He said the firm worked in close proximity to Graham’s team, including Warren Buffett, and built an understanding of Graham’s thinking over decades.

Minard described Tweedy, Browne’s core concept as the “Ben Graham big idea,” which frames stocks as interests in businesses rather than just trading instruments. He said the framework relies on two prices for each share, the market price and intrinsic value, with purchases targeted at a margin of safety, meaning a discount from intrinsic value.

The executives also said the discipline is intended to hold up across market cycles, including periods of fads and crises, and that it guides when to enter discounted stocks and when to move on as prices come closer to intrinsic value, as described in the interview.

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