Spurs conceded an own-goal through Younes Kaboul in just the second minute before Luis Suarez pounced on an error from Michael Dawson to net his 29th goal of the season, breaking Robbie Fowler's Premier League record for the Anfield club which was set in 1995/96.
Goals from Philippe Coutinho and Jordan Henderson followed leaving Sherwood to analyse a heavy defeat which has his Spurs side sitting sixth on the table, eight points from north London rivals Arsenal in fourth.
"The game was finished after two mistakes," he told Sky Sports.
"You can make all the best planning but when you make mistakes so early, we thought the longer we stayed in the game the better for us, but it is finished in two-minutes and we try and get back but they are a good side and they took a lot of belief from the first goal as everyone always does, the first goal is important but we were beaten by the better side today.
"Anyone can make errors it is just a shame we get punished as we did."
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