John Dorfman: Step into the shadows and take a peek at my Purloined Portfolio

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

I’ve always been a fan of Scott Black, who heads Delphi Management in Boston. Black is a major art collector and Democratic Party donor. He is 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, 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

Randall Eley runs pension-fund money and the Edgar Lomax Value Fund (LOMAX) in Alexandria, Va. 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 me to have lost some of its mojo.

CVS is considering selling or splitting off Caremark (a pharmacy benefits manager) and Aetna (a health insurer). I’m in favor of such a move. I believe that pharmacy benefits 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

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 valuation (14 times recent earnings and 1.3 times book value) leaves room for more gains.

David Katz

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

I think ISR — intelligence, 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

The Buffalo International Fund, run by Nicole Kornitzer, is up more than 16% this year through Oct. 10. From Kornitzer’s holdings, I choose the same stock I did last year, Taiwan Semiconductors Manufacturing Co. (TSM). In the past year, it’s up 47%.

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

The record

In the past year (Oct. 14, 2024, through Oct. 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 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.

Disclosure: I own Berkshire Hathaway, J.P. Morgan Chase, Mitsubishi UFG and Taiwan Semiconductor personally and for most of my clients.