Why Tweedy Browne is one of the coolest mutual fund companies in the world

andrew hallam

andrew hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (Wiley 2011) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use.

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4 Responses

  1. I always thought Tweedy Browne was rather stodgy compared to other Mutual Fund companies, but in this industry that is probably a good thing. It is unusual to see a fund company compare itself so openly and after taxes to index investing. Looks like the indexes still win after taxes.

    You should also take a look a Longleaf Partners, who have some of the strongest ethics in this business which is not known for having strong ethics ).

  2. Hey Biz,

    You're right about Longleaf. They're also disciplined, honest, and low cost. If you twisted my arm and made me buy American actively managed funds, I would be using this company as well.

  3. I have to admit, it's not too often I give the time of day at reading up on actively managed funds, but I am rather impressed with the performance of the Tweedy Brown Value Fund over the past 20 years.

    @The Biz of Life: You're right – it still looks like indexes prevail.

    Andrew, you're definitely doing something right with your index funds strategy. Do you know what the MERs would be for such a fund? When you mention average return after taxes, I'm assuming these are after management expense fees, correct?

    Nice post. Keep 'em coming!

  4. Hey Wealthy Canadian!

    The reported returns for the Tweedy Browne Value Fund are after fees. And considering that it has done so well, I'm surprised with how expensive it is. If memory serves me correctly, its expense ratio is about 1.5% (although, that's chump change by Canadian mutual fund standards).

    Having celebrated their long term returns (not to mention their honesty!) they still, as you and Biz correctly point out, have lost to the index in a taxable account.

    I commend them for showing that. How many mutual fund companies do we know that show their after tax returns compared to a broad index? Very few, I'm sure.

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