Tweedy, Browne: "this is no time to go wobbly"

David_Snowball

Tweedy's newly-issued letter on markets and pandemics speaks sensibly. The firm reminds readers that it's more than a century old, so they have the experience to see occasional crashing-and-burning as part of the price of admission. They point out that the last 25 years has seen a long series of catastrophes - two currency meltdowns in the EMs, the Russian debt default, LTCM debacle, 9/11, the '07-09 GFC - and a market that's returned nearly 500%, cumulatively.

I rather liked their conclusion:

... at times like this, we actually begin to feel better about our prospects for future returns. That said, our and your ability to have a successful investment experience depends in large part on the willingness to “stay on the bus.” The ride can be bumpy, but you ultimately have to stay on board to have any chance of reaching your destination. As Margaret Thatcher famously said to George Bush Sr. just before the start of the Kuwait War in 1990, “Remember George, this is no time to go wobbly.”

On a passing note, I just been trying to add to my BIAWX holdings but thwarted by TD's $50 transaction fee. Their soon-to-be parent sells the fund NTF, so I'm trying to see if there's any flex available.

Take care, David

Shostakovich

I like the guys at Tweedy. Sensible, thoughtful, been around the block. My wife has money in their funds (I take a bit more risk, but still like what they stand for).

johnN

thankyou

WABAC

They charge too much for the story they peddle.

Shostakovich

@WABAC -- agree, that's actually a good way to put it. I blame AMG. Frankly their international is a stronger relative performer than their global.

WABAC

Shostakovich said:

@WABAC -- agree, that's actually a good way to put it. I blame AMG. Frankly their international is a stronger relative performer than their global.

M* calls their global fund an international large cap value. And in that category it's the best of a star-crossed lot. I'm not sure what their global fund is. Their value fund I guess.

The Lipper data used by MFO premium calls it an international multi-cap core. In which category it faces stiffer competition with lower expense ratios and better performance.

T. Rowe's International Disciplined Equity (PRCNX) at a .9 expense ratio would be one obvious alternative choice. M* says it's a blend fund, but their style box says it's a large value.

But there are also funds from Eaton Vance and MFS that beat it, if you can access them from where your money is.

Granted, it has the lowest standard deviation and ulcer index. But you're paying through the nose for them. And the other choices mentioned aren't that far off those numbers, while offering better Sharpe and Martin ratios.

It's no wonder they've seen a billion in outflows these past five years.

Mark

David said "On a passing note, I just been trying to add to my BIAWX holdings but thwarted by TD's $50 transaction fee. Their soon-to-be parent sells the fund NTF, so I'm trying to see if there's any flex available."

Does TD offer a lower fee amount for automatic investments? Fidelity also charges the $49.95 fee for additions but reduces it to $5 if done automatically.

Shostakovich

Tweedy's fee is high, but they (like a precious few others -- see Royce & Associates as Exhibit A) are a true fiduciary. if your manager can keep you out of one or two major downturns over the course of an investing lifetime, they're doing a great job.

I'll have to revisit their downside / upside capture ratio -- it was historically quite good.

David_Snowball

Hi, Mark.

Don't know about the AIP. I'll ask when they're not all sweaty and panicked. As I note in the "nibbling" thread, TD waved the fee when I called and asked.

David