David Herro Comments on Tesco PLC

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Jan 09, 2015

In previous commentaries we discussed the succession of issues faced by Tesco (LSE:TSCO), a U.K. based grocery retailer, and our reassessment of fair value estimates. Typically, when we make an error in judgment on a stock, we have confidence it will overcome any short-term headwinds and recover. However, we recognized this investment was a mistake and thus sold our shares. Tesco was the largest detractor for the calendar year and was a major cause of our underperformance for the year. Although we strive to keep investment errors to a minimum, we do learn from our mistakes.

From David Herro (Trades, Portfolio)'s Oakmark International Fund 4Q 2014 Letter.