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


Table 18:
Investment Returns in Relation to Price/Earnings Ratios for all New York Stock Exchange and American Stock Exchange Listed Companies, April 1968 through April 1990
                                                                                                     Price/Earnings Ratio Decile
                                         (Highest Price/Book Value)                                   (Lowest Price/Book Value)

Holding Period
Following Portfolio
Formation

1st year
2nd year
3rd year
4th year
5th year
Average annual return
over the 5-year period
Cumulative 5-year
total return




1
12.3%
10.1
11.8
11.1
11.9
11.4

71.7




2
12.5%
11.3
13.8
12.4
12.9
12.6

80.8




3
14.0%
12.4
15.7
14.5
15.1
14.3

95.3




4
13.0%
14.3
17.1
15.1
16.7
15.2

103.1




5
13.5%
16.7
17.1
15.7
17.1
16.0

110.2




6
15.6%
16.4
19.1
15.9
16.8
16.7

116.8




7
17.0%
18.0
19.8
19.8
19.6
18.8

137.0




8
18.0%
18.5
18.8
19.9
20.1
19.1

139.3




9
 19.3%
 18.3
 18.8
 20.5
 21.1
 19.6

 144.6




10
16.2%
17.4
19.5
21.4
20.7
19.0

138.8


Companies in the United Kingdom, France, Germany and Japan Trading at Low Prices in Relation to Earnings
John R. Chisholm examined price in relation to earnings and investment results for companies in the United Kingdom, France, Germany and Japan in "Quantitative Applications for Research Analysts", Investing Worldwide II, Association for Investment Management and Research, 1991. A data set which was described as being comprised of fairly liquid, buyable companies was ranked at the end of each year according to price/earnings ratio and sorted into quintiles. The study period was December 31, 1974 through December 31, 1989 (15 years). Equal investments were assumed to have been made in each stock, and the stocks were assumed to have been sold after one year. The results were U.S. dollar results. Table 19 shows the annual compound returns for the top and bottom quintiles.

Table 19:
Investment Results According to Price in Relation to Earnings in the United Kingdom, France, Germany and Japan, December 31, 1974 - December 31, 1989
                                                                                                                         Annual Compound Returns

Price to Earnings Category

Lowest price to earnings quintile
Highest price to earnings qunitile

United Kingdom
33.0%
24.5

France
29.6%
23.1

Germany
22.0%
18.9

Japan
27.8%
21.8


Page 20 of 42

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