We completed the sale of our long-held (17 years) holding in Diageo (DEO, Financial) (LSE:DGE, Financial) due to its increasingly expensive valuation. We are always sad to exit a holding that has successfully compounded value for the Fund’s shareholders. Nevertheless, our discipline demands that when the share price nears our calculation of the holding’s intrinsic value, we prepare to move on, especially when we have replacement candidates selling at large discounts. We thank the management of Diageo for their successful stewardship of our shareholders’ capital.
From David Herro (Trades, Portfolio)'s Oakmark Global Fund fourth-quarter 2019 shareholder commentary.
