In case it’s not clear, we are disappointed with our track record in Europe. Unfortunately, we’re slow learners. We bought two new positions in Europe during the year, one of which already has been sold at a loss. The other, Richemont (XSWX:CFR), ranks among the great luxury houses globally: we believe Cartier is the strongest jewelry brand in the world and is flanked by a stellar portfolio of Swiss watch brands. As the emerging world grows wealthier, we believe the newly affluent will seek ways to project status and enjoy their wealth, benefiting Richemont and our long-time holding Tiffany (TIF). The chairman of Richemont is also an owner whose family built the company over decades. We’re hopeful that will make a difference.
From Ruane Cunniff (Trades, Portfolio)’s Sequoia Fund Q4 2014 Shareholder Letter.
