Tractor Supply (TSCO, Financial) also detracted from portfolio performance during the quarter. Despite uncooperative weather earlier in the quarter, the Company has executed nearly-flawlessly since the pandemic erupted in 2020. The Company is seeing early signs of a downshift in inflation which should benefit its margins after management made aggressive overhead and price investments for the benefit of employees and customers early in the pandemic. In addition, Tractor Supply continues remodeling its store fleet which increases a store selling space by up to 80%. Because the Company has not participated in the year-to-date rally for all-things-AI, we think shares are becoming more attractive both on a relative and absolute basis and continue to hold Tractor Supply as a core position.
From David Rolfe (Trades, Portfolio)'s Wedgewood Partners second-quarter 2023 letter.
