Finally, ADT Corporation's stock declined as we built our initial position over the past few months. Portfolio activity was moderate during the quarter. We bought shares of ADT, the leading provider of monitored home security service in North America. ADT's stock declined after the company reported gross customer additions that were below expectations. The quarterly results exacerbated fears about ADT's competitive position against new cable and telecom entrants. While competitive pressures have increased, we note that the company has taken steps to dampen sales of less profitable accounts. In our view, the company is wisely trading short-term sales results for more durable future profits. Results may be choppy during 2014, but we are more optimistic about 2015 and beyond.
From Wallace Weitz (Trades, Portfolio)'s first quarter 2014 report.
