Breaking down the stocks Norbert Lou (Punch Card Capital) bought, sold, and held in Q1 2025, including their holdings at the end of the quarter. All data sourced from Punch Card Capital's 13F filed on May 15, 2025.
Who are Norbert Lou and Punch Card Capital?
Norbert Lou is the founder and manager of Punch Card Management L.P. (commonly referred to as Punch Card Capital). The fund is known for its highly concentrated portfolio, typically consisting of 3-6 stocks at any given time, with significant cash holdings (averaging 25%) when attractive opportunities are scarce. His investment strategy is a classic value investing approach inspired by Warren Buffett's "punch card" philosophy, where one should invest as if limited to 20 punches in a lifetime. Lou focuses on underfollowed, undervalued companies that can compound intrinsic value at high rates over long periods, with strong qualitative factors like high returns on capital, reinvestment opportunities, economies of scale, and brand power.
Punchcardcapital.com
Norbert Lou on X
Q1 '25 13F filed with SEC
Holdings in Q1 2025
| Ticker | Company | Weight | Change | Value |
|---|---|---|---|---|
| BRK-A | Berkshire Hathaway | 53.4% | Trimmed (-58%) | $115.77M |
| SGOV | 0-3 Month Treasury | 27.0% | $58.5M | |
| PDD | PDD Holdings | 16.8% | Added (+136%) | $36.3M |
| SWBI | Smith & Wesson | 2.8% | $6.05M |
Current Investment Strategy
Norbert Lou's Punch Card Capital maintained its characteristically concentrated approach in Q1 2025, paring down to just two holdings—Smith & Wesson Brands and cash-equivalent treasury ETFs—reflecting the fund's disciplined practice of holding substantial cash reserves when high-conviction opportunities are scarce. The ultra-focused portfolio, built on Warren Buffett's "punch card" philosophy of limiting lifetime investments to only the most compelling ideas, signals Lou's patient value-oriented stance and willingness to hold defensive positions in the firearms manufacturer sector while awaiting underfollowed, high-quality compounders trading at significant discounts.
New Investments
Punch Card Capital did not open any new positions during Q1 2025.
Added, Trimmed, and Exited
Added
Punch Card Capital dramatically increased its position in PDD Holdings (PDD), more than doubling the stake from 130,000 shares to 306,751 shares—an addition of 176,751 shares that pushed the position value from $12.6M to $36.3M.
What it means: This substantial increase demonstrates extremely high conviction from Norbert Lou in the Chinese e-commerce platform. Given Punch Card's philosophy of maintaining only 3-6 concentrated positions, this upsize signals Lou believes PDD Holdings represents a compelling risk-reward opportunity despite ongoing concerns about Chinese tech valuations. The 187.9% return reported suggests the position appreciated significantly during the quarter, yet Lou still chose to add meaningfully, indicating he sees the stock as undervalued relative to its intrinsic value compounding potential.
Trimmed
Punch Card Capital cut its Berkshire Hathaway (BRK-A) position by more than half, reducing from 349 shares to 145 shares—a reduction of 204 shares that decreased the position value from $237.6M to $115.8M.
What it means: This significant trim of what was likely the fund's largest position suggests Norbert Lou is actively rebalancing the portfolio, possibly taking profits from Berkshire Hathaway to fund the aggressive accumulation of PDD Holdings. Given Lou's concentrated approach, this move indicates he may see relatively more attractive compounding opportunities elsewhere rather than an abandonment of the Berkshire thesis. The timing suggests disciplined position sizing and portfolio management rather than a loss of conviction in Buffett's conglomerate.
Exited
Punch Card Capital did not fully exit any positions during Q1 2025.
Disclaimer: All posts are for informational purposes only. They are NOT a recommendation to buy or sell the securities discussed. Please do your own research and due diligence before investing your money.
