Tweedy Browne Interview on Morningstar

Morningstar interview with Will Browne and Tom Shrager, from Tweedy Browne.

Topics covered:

• Where they see value today
• What is their criteria for a good business
• Tweedy portfolio overview

http://www.tweedy.com/video/ (requires Quicktime)
NB: this video is from May 2011, but only got posted today

Full Disclosure: CSCO (which is also a major holding of Tweedy Browne)

Euro Debt Crisis: From denial to acceptance

I must admit that since my last post on this topic, the sentiment in Europe has rapidly changed from denial of the problem, to not just accepting it, but working towards a good solution.  The market seems to expect that.

I expect that the market is at least, half right.

I believe that the European leaders finally accept the situation for what it is, but I am not convinced that they will have a perfect solution that the market is already pricing in. Besides, if the bond market truly believed that the forthcoming euro solution would be worthwhile the Greek CDS rate would have moved down in anticipation. It certainly has not done so.

Greek CDS Rate (As of Oct 23, 2011)

This may represent short term trading opportunities, but that isn't for me.

If the market drops more from here, I intend to buy some more undervalued securities. If not, I certainly wouldn't mind seeing my portfolio rise.


Full Disclosure: None