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Author: mungofitch Big gold star, 5000 posts Top Favorite Fools Top Recommended Fools Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 211764  
Subject: Re: Tesco Big Retail - Economy of scale Date: 1/12/2014 5:13 AM
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What are you doing with Tesco?

I'm out.

Berkshire sold 20%, so I sold 100%.
I blindly read into it that Mr Buffett had lost much of his confidence in their prospects.
He's not one to trim positions as a rule. More often iit's the
beginning of a gradual big liquidation over time like Moody's.

I might not have done so had I faced capital gains tax, as it's still
a good long term company with an attractive earnings yield likely
to rise a little in real terms over time.
Another factor was that I had better ideas for the money.
For one, Markel looked pretty cheap.

It's also likely I would not have sold if my position had been underwater.
I'm as susceptible to damaging anchoring and the disposition effect
as anybody else, no matter how hard I try to be hyper rational.
I bought for the first time shortly after the big profit warning so
I was in a nice profit position. It's irrational because only the
future matters (especially without cap gains tax) but sitting on
a nice profit makes it easier to sell.

Jim
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