Vopak (XAMS:VPK) was a small position that ultimately delivered the Fund a small but market-beating profit. While the business performed to expectation, our interactions with management over time left us increasingly concerned about the company’s framework for allocating capital. In addition, our strong preference—price permitting—is to own faster-growing companies where a strong upward progression of earnings turns the passage of time into an asset rather than a liability. We have had good luck finding new opportunities that fit this mold over the past year, and while there is nothing wrong with buying a dollar for 75 cents, we prefer where possible to pay 90 cents for a dollar that can multiply in value over time.
From Ruane Cunniff (Trades, Portfolio)'s Sequoia Fund first-quarter 2019 shareholder letter.
