The chart above illustrates very well, why value investing is a superior way of investing long term. For example the Global Value Fund (Tweedy, Browne) has been able to outperform in down and normal markets (left, center) and only underperformed in strong markets (right). When M&A gets heated you’ll be feeling pain, potentially, with a value investing portfolio or fund. But when the rainy days do come, you’ll have the best umbrella!
Practical step:
Looking at Tweedy, Browne Swiss Equity portion portfolio:
| Name | Investment | % |
| ABB Ltd | 40’043’593 | 3.39% |
| CIE Financiere Richemont AG | 30’059’973 | 2.55% |
| Coltene Holding AG(d) | 12’659’866 | 1.07% |
| Daetwyler Holding AG, Bearer | 18’116’447 | 1.54% |
| Loeb Holding AG | 428’308 | 0.04% |
| Nestle SA, Registered | 208’491’495 | 17.68% |
| Neue Zuercher Zeitung(a)(f) | 415’515 | 0.04% |
| Novartis AG, Registered | 279’700’952 | 23.71% |
| Phoenix Mecano AG(d) | 31’805’097 | 2.70% |
| Roche Holding AG | 285’117’184 | 24.17% |
| Siegfried Holding AG(d) | 44’311’142 | 3.76% |
| Tamedia AG | 70’841’142 | 6.01% |
| Zurich Insurance Group AG | 157’581’660 | 13.36% |
| Total | 1’179’572’374 | 100.00% |
Financial Markets Blog - by Zuberbühler Associates AG 