Tweedy Browne Sells Halliburton, Johnson & Johnson

GuruFocus.com
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- By Tiziano Frateschi

Tweedy Browne is an investment partnership owned by its four managing directors, William H. Browne, John D. Spears, Thomas H. Shrager and Robert Q. Wyckoff Jr. During the third quarter the guru firm's largest sales were:

Halliburton Co. (HAL) was reduced by 19.56% with an impact of -1.28% on the portfolio.


The company is a provider of services and products to the energy industry related to the exploration, development and production of oil and natural gas. Third-quarter revenue was flat at $3.8 billion, operating income was $128 million and cash flow from operating activities was in excess of $1.0 billion.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with ROE of -44.54% and ROA of -18.13% that are underperforming 83% of the companies is a provider of services and products to the energy industry related to the exploration, development, and production of oil and natural gas. Financial strength has a rating of 4 out of 10, with cash to debt of 0.27 that is below industry median of 0.47.

Bill Nygren (Trades, Portfolio) is the largest shareholder among the gurus with 0.62% of outstanding shares followed by Spiros Segalas (Trades, Portfolio) with 0.59%, First Pacific Advisors (Trades, Portfolio) with 0.43%, Richard Pzena (Trades, Portfolio) with 0.36%, Steven Romick (Trades, Portfolio) with 0.34%, Steven Cohen (Trades, Portfolio) with 0.3% and Sarah Ketterer (Trades, Portfolio) with 0.3%.

The firm reduced its stake in Johnson & Johnson (JNJ) by 7.39% with an impact of -0.81% on the portfolio.

It is a holding company, which is engaged in the research and development, manufacture and sale of products in the health care field within its Consumer, Pharmaceutical and Medical Devices and Diagnostics business segments. During the third quarter sales increased 4.2% from the same quarter of a year before, net earnings and diluted earnings per shares were $4.3 billion and $1.53.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10 with ROE of 21.88% and ROA of 11.55% that are outperforming 83% of the companies in the Global Drug Manufacturers - Major industry. Financial strength has a rating of 7 out of 10 with cash to debt of 1.50 that is below the industry median of 3.87%.

The largest shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with 0.45% of outstanding shares followed by Ken Fisher (Trades, Portfolio) with 0.4%, Jeremy Grantham (Trades, Portfolio) with 0.27% and Donald Yacktman (Trades, Portfolio) with 0.23%.

The guru firm reduced its shares in Wells Fargo & Co. (WFC) by 12.24% with an impact of 0.81% on the portfolio.

It is a diversified financial services company. It provides retail, corporate and commercial banking services through banking stores and offices, the internet and other distribution channels to individuals, businesses and institutions. Third quarter diluted earnings per share were $1.03, compared with $1.05 and net income was $5.6 billion compared to $5.8 billion in the same quarter of a year before. The company reported a 2% increase in revenue.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with ROE of 10.47% and ROA of 1.21% that are outperforming 65% of the companies in the Global Banks - Global industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.05 that is below the industry median of 2.02.

The largest shareholder among the gurus is Warren Buffett (Trades, Portfolio) with 9.55% of outstanding shares followed by Dodge & Cox with 1.34%, Barrow, Hanley, Mewhinney & Strauss with 0.74%, Chris Davis (Trades, Portfolio) with 0.52%, PRIMECAP Management (Trades, Portfolio) with 0.36%, Fisher with 0.36% and Tom Russo (Trades, Portfolio) with 0.31%.

The firm reduced its shares in Cisco Systems Inc. (CSCO) by 6.37% with an impact of -0.69% on the portfolio.

The company is engaged in designing, manufacturing and selling of Internet Protocol (IP)-based networking products and services related to the communications and information technology industry. During the first quarter, revenue increased 1% year over year, but net income decreased 4%. The company delivered a 4% decline in diluted earnings per share.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10 with ROE of 17.14% and ROA of 8.99% that are outperforming 85% of the companies in the Global Communication Equipment industry. Financial strength has a rating of 6 out of 10 with cash to debt of 2.04 that is below the industry median of 3.34.

Dodge & Cox is the largest shareholder among the gurus with 1.33% of outstanding shares, followed by PRIMECAP Management with 0.55%, Yacktman with 0.51%, Jeremy Grantham with 0.47%, First Pacific Advisors with 0.33%, Kenneth Fisher with 0.31% and Yacktman Fund (Trades, Portfolio) with 0.27%.

The guru reduced its shares in 3M Co. (MMM) by 15.20% with an impact of -0.69% on the portfolio.

It is a diversified technology company. Its operating segments are Industrial; Safety and Graphics; Electronics and Energy; Health Care; and Consumer. Its products include vinyl, polyester, foil and others. Third-quarter operating income increased 0.4% year over year while sales were flat year over year. The company returned $1.4 billion to shareholders via dividends and gross share repurchases.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 41.44% and ROA of 14.84% that are outperforming 94% of the companies in the Global Diversified Industrials industry. Financial strength has a rating of 6 out of 10 with cash to debt of 0.22 that is below the industry median of 1.28.

The largest shareholder among the gurus is First Eagle Investment (Trades, Portfolio) with 0.71% of outstanding shares followed by Jeremy Grantham with 0.49%, Mairs and Power (Trades, Portfolio) with 0.3%, Pioneer Investments (Trades, Portfolio) with 0.16%, Tweedy Browne with 0.135, Tom Gayner (Trades, Portfolio) with 0.03%, Manning & Napier Advisors, Inc with 0.02%, Fisher with 0.02% and Joel Greenblatt (Trades, Portfolio) with 0.01%.

The firm reduced its shares in MRC Global Inc. (MRC) by 21.97% with an impact of 0.5% on the portfolio.

The company along with its subsidiaries is an industrial distributor of pipe, valves and fittings and related products and services to the upstream, midstream and downstream energy industries. During the third quarter sales decreased 26% from the same quarter of a year before and increased 6% from the second quarter. Net loss attributable to common stockholders was $46 million, or 48 cents per diluted share, compared to net income attributable to common stockholders of $10 million, or 10 cents per diluted share for the same quarter of 2015.

GuruFocus gives the stock a profitability and growth rating of 3 out of 10 with ROE of -48.95% and ROA of -17.81% that are underperforming 85% of the companies in the Global Oil & Gas Equipment & Services industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.41 that is below the industry median of 0.47.

Tweedy Browne is the largest shareholder among the gurus with 4.69% of outstanding shares followed by Greenblatt with 1.19%, Arnold Schneider (Trades, Portfolio) with 1.02%, Jim Simons (Trades, Portfolio) with 0.93%.

The guru reduced its shares in Comcast Corp. Class A (CMCSA) by 15.71% with an impact of -0.31% on the portfolio.

It is a media and technology company. The company's business segments are: Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks. Third quarter consolidated revenue increased 14.2%, operating income grew 11%, and operating cash flow increased 10.5%.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10 with ROE of 15.90% and ROA of 4.95% that are outperforming 67% of the companies in the Global Pay TV industry. Financial strength has a rating of 4 out of 10 with cash to debt of 0.05 that is below the industry median of 0.48.

The largest shareholder among the gurus is Dodge & Cox with 1.72% of outstanding shares followed by First Eagle Investment with 1.01%, Fisher with 0.52%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.16%, Russo with 0.16%, Diamond Hill Capital (Trades, Portfolio) with 0.16%, Hotchkis & Wiley with 0.16% and Lee Ainslie (Trades, Portfolio) with 0.12%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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This article first appeared on GuruFocus.


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