Copycat Investment Strategies: Example Tweedy Browne Value Portfolio Switzerland

Copycat Investment Strategies have been shown to be cheaper than investing in the real thing while at the same time capturing most if not all of the performance in the underlying holdings. You don’t pay the marketing expenses and expensive offices and analysts. As you know from the Aldi and Lidl concept, copying an original and selling it cheaper is good business for all those involved, as long as rules and laws are respected.

Today I’m taking a look at the very respected value investor Tweedy Browne, as their portfolio is one that can be easily copied, without much risk of timing/tracking error. Their portfolio of Swiss equity holdings is very stable as you can see from the graph below (note I use the ticker symbols).

tweedy-browne-swiss-holdings

There were just two changes this year. Firstly they bought close to CHF 50m worth of ABB. Second they sold into the strength of Daetwyler (Ticker: DAE).tweedy-browne-swiss-holdings-market-value

So if a client were to ask me for recommendations for a long term investment mandate I would show them Tweedy Brownes’ holdings as an example by percentage:tweedy-browne-swiss-holdings-percentage

I took Tweedy Browne, the value investor, as an example, as I believe that most long term investors will enjoy less volatility with more upside than most other strategies. Feel free to contact me via the contact form on the main website or leave a question below.

Please note that just 17% of the entire portfolio in the Tweedy Browne Global Value Fund are currently invested in Switzerland, but we’re talking about over USD 1.1bn just in Switzerland!

Here are some links to copycat investment strategies, i.e. the rationale behind it:

The Case for being a Copycat Investor:

www.theglobeandmail.com/globe-investor/investment-ideas/the-case-for-being-a-copycat-investor/article4097099/

Copycat Investing: Planning Your Retirement Like a Pro:

http://online.wsj.com/news/articles/SB105647773416202400

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