"Our entire process is rooted in Ben Graham's simple philosophical framework for investing. He believed there were two values for every stock, the first being the current market price, and the second what the share would be worth if the entire company were acquired by a knowledgeable buyer or if the assets were liquidated, the liabilities paid off and the proceeds paid to stockholders. He called that the intrinsic value and argued that the time to buy was when there was a large spread between the current price and that value, and the time to sell was when that spread was narrow.
Over time we've developed different ways of applying that —by valuing income streams rather than just assets, by calculating private market values, by investing internationally —but the essence of what we do has remained consistent . Our work everyday is essentially directed at valuing what businesses are worth .
—Will Browne, Tweedy, Browne Co."
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