This is why stock picking is so hard - and index investing so easy ... - The Globe and Mail

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Published over a year ago View all stories for Tweedy Browne | Tweedy Browne Hype Analysis

We analyze Tweedy Browne's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Tweedy Browne using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Tweedy Browne based on its fundamental data. In general, a quantitative approach, as applied to this mutual fund, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Tweedy Browne mutual fund to make a market-neutral strategy. Peer analysis of Tweedy Browne could also be used in its relative valuation, which is a method of valuing Tweedy Browne by comparing valuation metrics with similar companies.

Tweedy Browne financial ratios help investors to determine whether Tweedy Mutual Fund is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Tweedy with respect to the benefits of owning Tweedy Browne security.