Step Into the Shadows, and Take a Peek at My Purloined Portfolio

By John Dorfman

October 13, 2025 Maple Hill Syndicate

Do you keep an eye on your competition? Of course you do. Competition research is common sense. When you think a competitor has a great idea, adopt it or adapt it.

In that spirit, once a year I compile a Purloined Portfolio, consisting of one stock from each of five rival investment managers I respect. Here goes.

Scott Black (Trades, Portfolio) Berkshire Hathaway

I've always been a fan of Scott Black (Trades, Portfolio), who heads Delphi Management in Boston. Black is a major art collector and Democratic Party donor. He's featured in Barron's magazine each year on its stock-picking panel.

From his holdings, I select Berkshire Hathaway Inc. (BRK.B). Berkshire has been run for six decades by investment legend Warren Buffett (Trades, Portfolio), who plans to relinquish the helm at the end of this year. I think he has a good team in place, led by Greg Abel, who will be the next CEO.

I regard Berkshire as the country's most successful conglomerate. I don't advocate breaking it up, but if Abel needed or wanted to sell off some of the pieces, I think he could reap high valuations for many of them.

Randall Eley CVS Health

Randall Eley runs pension-fund money and the Edgar Lomax Value Fund (LOMAX) in Alexandria, Virginia. His largest holding is CVS Health Corp. (CVS). You might be surprised by this choice since the stock has lost 24% of its value over the past decade.

I think CVS is poised for a comeback. One of its competitors, Rite Aid, has declared bankruptcy and ceased operations. Its largest competitor, Walgreens, seems to have lost some of its mojo.

CVS is considering selling or spinning off Caremark (a pharmacy benefits manager) and Aetna (a health insurer). I'm in favor of such a move. I believe that pharmacy-benefit management has built-in conflicts of interest.

As for health insurance, I think it's a difficult business because of rising health-care costs. The core drugstore business is the one that most appeals to me.

Bernard Horn (Trades, Portfolio) Mitsubishi UFJ Financial Group

A veteran international stock picker, Bernard (Bernie) Horn runs the Polaris Global Value Fund. From his holdings I draw Mitsubishi UFJ Financial Group Inc. MUFG. It's the largest bank in Japan, and also owns approximately 23% of Morgan Stanley, a big investment bank in the U.S.

In the past four quarters, Mitsubishi UFJ has seen profits climb 29% on a 10% increase in revenue. Most analysts expect growth to slow down. Should you buy it? Analytical opinion is split, but I think the present valuation14 times recent earnings and 1.3 times book valueleaves room for more gains.

David Katz L3 Harris Technologies

David Katz, chief investment officer at Matrix Asset Advisors in New York City, manages just over $1 billion. One of the stocks he owns is L3 Harris Technologies Inc. LHX, a defense contractor that specializes in military electronics.

I think that **ISRintelligence, surveillance, and reconnaissance**is already vital to national defense and will become even more so. That's why I like L3 Harris even though it's more expensive than I normally go for. The stock trades at 33 times recent earnings and 24 times estimated earnings.

Nicole Kornitzer Taiwan Semiconductor

The Buffalo International Fund, run by Nicole Kornitzer, is up more than 16% this year through October 10. From Kornitzer's holdings, I again choose Taiwan Semiconductor Manufacturing Co. TSM, which I also picked last year. Over the past 12 months, it's up 47%.

It might seem crazy to hope for more, but I do. Every major semiconductor company I knowexcept Intel Corp. (INTC)uses TSM to manufacture its chips. Thus, TSM sits at the very heart of the global economy. Of course, there is geopolitical risk: an invasion of Taiwan by China remains a real threat.

The Record

In the past year (October 14, 2024 through October 10, 2025), my Purloined Portfolio returned 20.1%, including dividends. That handily beat the Standard & Poor's 500 Total Return Index, which returned 13.3%.

Leading the charge was Taiwan Semiconductor's 47% return. Also doing well was J.P. Morgan Chase & Co. (JPM), drawn from David Katz's holdings. My worst selection was Schlumberger Ltd. (SLB), which declined 27%.

The long-term results are also favorable. In 21 years, my Purloined Portfolios have averaged 13.2%, while the S&P 500 has averaged 11.6%.

Bear in mind that my column results are hypothetical and shouldn't be confused with results I obtain for clients. Also, past performance doesn't predict the future.

Of the 21 stolen-idea lists, 17 have been profitable and 11 have beaten the S&P.

John Dorfman is chairman of Dorfman Value Investments in Boston. His firm or clients may own or trade securities discussed in this column. He can be reached at jdorfman@dorfmanvalue.com.