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TWEEDY, BROWNE COMPANY L.P.
What Has Worked in Investing
 (continued from preceding page)



The Consistency of Returns for Low Price to Book Value Companies as Compared to High Price to Book Value Companies
The study which was described in the preceding section, Contrarian Investment, Extrapolation and Risk, also examined the consistency of investment returns for low price to book value companies as compared to high price to book value companies over 1-year, 3-year and 5-year holding periods from 1968 through 1990. The investment returns for the companies in the high price to book value category, which comprised the returns for the companies in the highest two deciles of companies which had been ranked on price to book value, were subtracted from the investment returns of the low price to book value companies, which comprised the bottom two deciles of the price to book value ranking. The following Table 8 shows the results of the study.

Table 8:
The Consistency of Investment Returns for Low Price to Book Value Companies as Compared to High Price to Book Value Companies for 1-Year, 3-Year and 5-Year Holding Periods, 1968 through 1990
                                                                  Holding Period

Year of
Portfolio Formation

1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989

1 Year
% Better (Worse)

9.8%
7.4
2.3
(10.8)
9.8
4.2
5.0
41.8
13.2
19.5
3.7
(20.7)
(3.4)
18.5
24.0
22.1
4.3
(0.7)
5.1
7.8
(3.7)
(20.7)

3 Years
% Better (Worse)

20.1%
7.0
3.2
15.6
32.8
45.0
64.2
103.4
72.7
18.1
(26.4)
(12.3)
106.6
81.0
58.9
25.6
32.4
23.7
14.9
1.5

5 Years
% Better (Worse)

      34.4%
30.3
27.9
46.3
78.4
92.5
172.6
118.2
99.3
61.4
28.6
56.9
167.6
195.5
147.7
64.8
64.0
29.9


Page 10 of 42

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