Pat Dorsey Just Sold Google to Buy These Stocks (Q1 2026)

Ajouté : 2026-05-24

[00:00:00]Hello everyone and welcome back. In this video we are going to talk about Pat Dorsy, a quality legendary investor because we have the updated portfolio.

[00:00:09]So he has bought some things, he has sold some things and I want to comment on the situation because I believe this is a very very good hunting ground. In case this is your first video from this channel, welcome. My name is Christoph Nur. I've been investing in the stock market for almost a decade now and I have achieved a performance of 25% per year and my strategy is to have a concentrated portfolio and to invest in quality companies and Pat Dorsy has been doing exactly this for many many years.

[00:00:40]In case you don't know Pat Dorsy, um he has been working with Morning Star for a few years and he created his fund Dorsy asset management and he focused on companies with a wide mo strong competitive advantage and I've been tracking his portfolio for years. It's a great source of inspiration. So let's start. Uh you have a first position ASML. I suppose you all know that ASML is a very important company. The stock has gone up so much that now it has become his largest holding and it was like more than 17 or 18% of his portfolio. He trimmed a little bit. So ASML is a monopoly in the cheap EUV litography market. They are printing cash and the stock was down last year because of some uh bad guidance, weak numbers when guess what it's a double in one year and he is taking some profits to allocate elsewhere but it's still his biggest position. So when you want to talk about an investor investing in wide mode companies, ASML has a wide wide wide mode. Now the valuation is no longer cheap. We are back to fair value or expensive. So he's just taking some gains off the table to invest elsewhere.

[00:02:07]And he is also reducing his second largest holding air cap holdings.

[00:02:14]To be frank, I did analyze this company also, but I did not understand the company. I'm I'm too stupid, I guess. So leasing of aircraft and the stock looks fantastic. The earnings look fantastic but the track record is not great. You look at the past not so so you have more simple ideas but in case you want to investigate in an aircraft leasing asset light company ARAP holdings is the way to go and he is trimming a tiny bit still a big holding so he took some profits to do what? First of all to invest in Sunb Belt Rentals Holdings. If you click on this one, you will see that many super investors are buying. Why?

[00:03:00]Because it's a spin-off and the company is very recent. The stock has been here for two months from March. It's a spin-off. So Sunb Belt SunB it's a spin-off or it's a rebrand of the company and uh maybe it is your chance to buy this opportunity.

[00:03:28]So Sunbet Rentals formerly UK based Asht Group is the number two equipment rental company in the US. Very simple. So maybe it's a rebranding, a new name, a spin-off. I know I will investigate on this one and do some further research.

[00:03:45]But Ashed was famous for it was a good company. It was famous and maybe all these super investors bought the dip. Where can I find it? Um you see all these super investors Pat Dorsy buying the dip making making it a core positions. Rowan Kunif big investor big position. Tom Russo, great investor, buying the dip. AO Capital, great investor, buying the dip. And then you have Bill here, it's a small position. Franis Roshan, great investor buying the dip, small position. Tom Gainer, I mean, you have legendary names.

[00:04:24]A few of them are buying this company.

[00:04:28]Is it a spin-off? Is it something? Go and investigate, play around or maybe you are a shareholder. So you are more than welcome to comment on this video and share your story, share your analysis. Something is interesting here and it is why we are monitoring all these portfolios.

[00:04:46]Something is happening here and you can only know this company if you go on data, you track the super investors and you say, "Oh wow, quality investors are buying this company. Let me investigate." So this video will be your first step for your analysis but please investigate. Also he's buying Apploving.

[00:05:06]So Apploving a company that is not very famous actually but they got a lot of attention recently because of a short seller that accused them of being a fraud tricky accounting tricky ads for children that were not very compliant.

[00:05:21]So, it's an advertising company for smartphones and software company.

[00:05:28]Beautiful margins growing 40 to 50% per year, but the track record is not long.

[00:05:34]The company is not famous for being profitable. They just got a success for the past two years. So, for me, I don't like it. The track record is too short.

[00:05:46]Two years is too short and I'm not comfortable holding this one. You have a forward P ratio of 32.

[00:05:53]So it's not crazy expensive but not crazy cheap. And they are accused of being a fraud. I read the short seller.

[00:05:59]I did not like it. I did not like the investment idea.

[00:06:03]I don't like the accounting and u it seems like Pat Dorsy takes another view.

[00:06:09]He made it a core position in his portfolio. That's the opportunity to investigate for you if you want to invest in this advertising company.

[00:06:19]He reduced his exposure to Danaher. So a serial acquirer, familyowned business.

[00:06:26]The stock is just going down and down and down. The results are okay, but nothing terrific like we had back in the days. So a giant that goes under. By the way, if you want to become a better investor and improve your performance, I have a coaching program. It gives you the exact method I've used to generate 25% per year for almost a decade. More on that at the end of the video. And now you may ask how can he buy sunb belt by uploving by other things? Well, maybe because he sold other things, right? And you would be right. If you click on activity on datarama, you can see that he sold out of autozone completely.

[00:07:09]It was 7% of his portfolio and he completely sold out of Autozone.

[00:07:14]Full disclosure, I also recently sold out of Autozone completely during the same quarter. So I'm very happy to see him selling also because I'm seeing some signs that the business is decelerating and I see other opportunities that are more compelling. The story for Autoone is very simple. So auto parts company but you have some LIFO accounting changes that are impacting the stock the sentiment and the valuation was a little bit high and other opportunities emerged. So the revenue is growing single digits. They're doing massive buybacks with that. The story is not changing. It's just that the stock was expensive and the growth rate was not there. The growth rate decelerated a lot.

[00:08:03]And uh because of this, the stock is going down. The stock uh picked at more than $4,000 and now we are down 20% from alltime highs. Anyway, you have other quality stocks that are down much more than this. So, it's all a matter of riskreward opportunities.

[00:08:24]Okay. So, he's selling out of this completely because he sees better better things. He's selling out of Google completely.

[00:08:33]It was 6% of his portfolio. Completely sold out of Google without any explication.

[00:08:39]So, okay. And he's selling out of an office. We don't care. It is less important. So, now that he has raised some cash out of all these sales, he continues to buy more stuff. Royalty Pharma, we don't care. It's too tricky.

[00:08:55]He did not touch the position. S&P Global he bought a new position in S&P Global 7% of his portfolio. S&P Global is a company that is of quality with a widewide mode. Now it's a dupole in the credit rating agency but they also do analytics a little bit of index and all the segments are improving because of AI. The stock is down because the company is seen as a AI loser.

[00:09:25]But effectively it is an AI winner because the revenue is accelerating and all the segments are improving margins, credit ratings, index, energy, mobility, everything is improving analytics everything is getting more efficient because of AI. They are putting AI and they are using their own preparatory data, private data to feed AI to become more efficient. So they no longer need to hire new employees. They're automating everything with AI and it is working. So the business is accelerating, is getting more efficient, is using more of their cash to do more buybacks. So the business is growing profitably. They did a stupid acquisition in 2021. IHS that diluted their performance but it was back in the days right five years ago now they continue to do buybacks and they seem to stay in their lane so it's a company that can grow revenue at roughly 8 to 10% per year be more efficient improve their margins every year and they can do buybacks of two to 3% every year so you have an earnings per share that can grow at 12 13% per year for the next 5 years and you got everything for this wonderful compounder at the forward P ratio of 20 out of this all of these companies in the financial services industry you have Moody's S&P Global MEI Factet Garner all of these companies S&P Global presents a very good appealing riskreward opportunity the stock goes down every time Anthropic announces a new release of a cloud model. No, no, actually they are not being uh disrupted. They are integrating the model from Anthropic inside their business model and it is working. I am checking all the reports, all the earnings calls, all the slides of all the companies in this industry. I can tell you it is already working. So, it's not an AI headwind, it's an AI tailwind for them. But you have a temporary concern. I think it's a great decision from Pat Dorsy to invest in S&P Global now because you have a lot of pessimism.

[00:11:52]He is selling Google the stock is expensive and you have optimism to buy S&P Global with pessimism and the stock is cheap. I think that's the trade here. Also, Google is investing more and more in capex.

[00:12:06]So you all the cash flow all the cash flows are going to finance the growth and capex without any buybacks for shareholders whereas S&P global is having zero capex and putting all the cash to shareholders as dividends and buybacks. So it's a matter of capital allocation and valuation. Two reasons why he made the trade I believe to sell Google and buy S&P Global.

[00:12:33]Then no change for Live Nation. No change for Meta Platforms. Maybe in the future if Meta Platforms goes up, if the stock goes up and becomes expensive, he will sell. But I mean, he has been holding Meta Platforms for so many years now. The valuation for Meta Platforms is low, the stock is cheap.

[00:12:57]So, I don't see why he would sell.

[00:13:00]Frankly, if the stock was $800, $900, yeah, [clears throat] maybe he would have sold. But now the stock is very cheap. Very, very cheap. He can double down on this one. I would not be surprised. Now the stock is cheap. Maybe in the future if he doesn't like the capex, he will not like meta platforms.

[00:13:18]And then you have another addition, a new buyer for a fund focused on competitive advantages, wide mode businesses. He is buying Uber. I don't like this.

[00:13:32][laughter] Uh, I'm happy to take the other side of the bed saying I don't like Uber at all. I don't like the way they became profitable. I don't like how short and shallow the track record is. I like the management team. I like the vision of the management team. Right now, they are profitable and growing 20%. But the main worry I have is it's only been two years. Two years of clear profitability. Look at this. In the in the past, they had losses and losses and losses and losses. In 2018 they became profitable. They promised the world and then they failed and they turned out to become unprofitable again.

[00:14:11]And the way they became profitable is by raising fees everywhere and using their network effect. Now the story is very simple network effect. They have millions and millions of cars. They can do whatever they want. You have er growing fees scale economies of scale network effects. I hear that still I don't like it. But uh if you don't like a company, you are not forced to invest either long or short. You can just let it go and dismiss the investment idea. I remember when Bill Aman opened a position in Uber, the stock went up and retail investors uploaded and celebrated now the stock is down. I hear nobody.

[00:14:56]It tells you something about the conviction of people, right? If you believe in the Uber thesis, you should be very happy that the stock is going down because they can do massive buybacks at a cheap price and you can increase your position. Anyway, we are here today to talk about Pat Dorsy. He is buying the dip. He believes there is a real mode and they can grow 20% per year. Let's see how it goes. I'm saying let's see how it goes because it's not certain. Why? Look at this.

[00:15:26]If you click on um [sighs] that this one activity, click on activity, you go back from two quarters ago, he was an investor in wigs.com and two quarters ago he completely sold out of wigs.com.

[00:15:46]So sometimes he makes an investment.

[00:15:50]Look at history and weeks. Okay.

[00:15:54]Sometimes he invests in a company, he makes it his core position. The stock goes up very well. In late 2024, Wix was his biggest position and then he sells and he's out. Why? Let me show you why.

[00:16:10]The company Wix.com is having a lot of problems and the stock is dropping like a rock. Look at the past five years performance. Wix.com is a company that helps you create websites, drag and drop website.

[00:16:28]They get completely crushed by AI. Now you can create any website very easily.

[00:16:33]Drag and drop code. You can I mean Wix.com may be dead and they reported earnings a few days ago. The numbers are very bad. The stock was down 20%. The business was profitable. Now it's unprofitable. So all the story about being more efficient failed. All the story about growth failed. They need to fight back against AI. So they need to invest massively in themselves. So they have higher cost. And because the costs are so high now you have no profits. All these promises, yeah, we will become profitable. We are a secure company.

[00:17:15]Boom. Gone. In one year, two years.

[00:17:18]You're gone. You're dead. So growth not here, profitability not here. Uh dilution SBC they keep diluting shareholders with stock options and now they have a decreasing number of paying users. So premium subscriptions are on the decline is not great at all and they say publicly that they're failing at creating websites. But wigs.com will now focus on what's next. After you have created your website, you will focus on the back end, the domain, the mails, etc. [sighs] Uh so they are assuming the business is dead. Their core area of expertise is dying. The management team is acknowledging acknowledging it and they want to focus on something else. At the same time, they made some acquisitions.

[00:18:14]B 44. The bulls will say this is a growth engine, but it's tiny. My point being Pat Duly can invest in a business and then the story can change. For Uber, we will see for all these new buys. We will see. It's not a guaranteed win.

[00:18:34]Okay, he may change his mind and he recently sold out of Wix completely. So, we will see what he does. And by the way, he's not the only one doing something with Wix. Uh, let me show you something. Let me show you Meta Platforms.

[00:18:54]Let me show you Rob Vinel because Rob Vinel did the exact same thing.

[00:19:00]He invested in Wix. Look at this. And this quarter, today he sold out of Wix completely. Last quarter he had Wix in his portfolio and now he's gone. So very curious to see what will happen with weeks. But just to tell you be careful.

[00:19:18]This is a starting point of your analysis. It should not constitute the whole investment thesis. I'm making this videos to uh create the first step the step number one of the analysis. So you can investigate further. Okay. So he bought more Uber and he did not change his booking holdings position. I think booking holdings is a buy right now.

[00:19:42]The company is still fine. People worry too much.

[00:19:48]But booking holdings, that's a platform.

[00:19:52]So they will not get disrupted by AI for the moment. It's about safety, security, and it's a platform. The stock was expensive. Now it became slightly undervalued. I think booking holdings represents a good buying opportunity at the moment.

[00:20:09]Maybe you will see other investors buying the dip. You have a forward PE ratio of 14 15. That's fine. The business continues to do buybacks every year and they are trying to implement AI. I think they will fail to implement AI. I don't I don't see how they will implement AI in their business. They mention AI chatbots.

[00:20:32]Okay. And that's it. So booking holdings will not be disrupted by AI for the moment but they will not benefit from AI for the moment. I don't believe them when they say cost efficiency with AI chatbots instead of hiring you humans we have AI agents and chat bots and this is it. This is how you can implement AI.

[00:20:54]That's you're done. It's not the same thing for S&P Global. You have a clear AI implementation to browse data out of millions of files or folders to create custom indexes to create great analytics. So you have the backend system that can work with AI entirely.

[00:21:16]So it will improve the efficiency by a lot for S&P Global for booking holdings chatbots.

[00:21:23]And this is it customer satisfaction surveys. That's it. So a very interesting portfolio update.

[00:21:30]Now this is your starting point of your analysis. Investigate further. Sunb Belt approving S&P Global Uber. Clearly he tells you a lot about his portfolio and what he thinks will move the market in 2026. If you like this content and you want to go deeper, I have a coaching program. In this program, you will learn my strategy to generate 25% annual returns. You will learn how to find winning opportunities. You will learn how to properly value any stock, when to buy, when to sell so that you can build a strong portfolio filled with great companies. Additionally, inside this coaching program, you will have access to an exclusive community of like-minded investors and also you will have my personalized guidance to reach your investing goals. Click the first link in the description to get more information.

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