Breaking down the stocks Norbert Lou (Punch Card Capital) bought, sold, and held in Q1 2026, including their holdings at the end of the quarter. All data sourced from Punch Card Capital's 13F filed on May 15, 2026.
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 '26 13F filed with SEC
Holdings in Q1 2026
| Ticker | Company | Weight | Change | Value |
|---|---|---|---|---|
| Berkshire Hathaway | 38.5% | $104.13M | ||
| Crocs | 18.2% | $49.36M | ||
| iShares | 17.1% | Trimmed (-19%) | $46.3M | |
| PDD Holdings | 15.7% | $42.41M | ||
| PayPal | 10.5% | $28.45M |
Current Investment Strategy
Norbert Lou's Punch Card Capital entered the second quarter of 2026 running an ultra-concentrated, unleveraged value book of just four names—Berkshire Hathaway, Crocs, PDD Holdings, and PayPal—plus a sizable cash-equivalent cushion in short-term Treasuries, having made no new buys or sells during the quarter. True to Buffett's "20-punch" philosophy that shapes his approach, Lou continues to eschew diversification for its own sake, instead betting on durable compounders with high returns on capital across insurance/conglomerate, consumer footwear, Chinese e-commerce and digital payments exposures he considers underfollowed and undervalued by the broader market.
New Investments
Punch Card Capital did not open any new positions during Q1 2026.
Added, Trimmed, and Exited
Added
No new additions to existing positions were made this quarter by Punch Card Capital.
What it means: With no incremental buying, Norbert Lou appears content to let his current five-stock portfolio run rather than deploy additional capital, consistent with his highly selective, low-turnover "punch card" philosophy of only acting on high-conviction opportunities.
Trimmed
The fund significantly cut its iShares position, reducing shares by roughly 19% (from 566,000 to 460,000 shares), which combined with a price decline brought the position's value down from $56.8 million to $46.3 million.
What it means: Since iShares likely represents a cash-management or parking vehicle rather than a core equity conviction, this trim suggests Lou may be redeploying capital elsewhere or simply managing liquidity needs, rather than signaling a shift in his underlying investment thesis on any operating business.
Exited
There were no full liquidations from the portfolio this quarter.
What it means: The absence of any exits reinforces the fund's characteristically low turnover and long holding periods, indicating continued conviction in core holdings like Berkshire Hathaway, Crocs, PDD Holdings, and PayPal despite broad declines in portfolio value this quarter (down from roughly $300.9 million to $270.6 million), which appears driven more by price weakness across holdings—including a notable 22.5% drop in PayPal—than by any deliberate reduction in exposure.
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.
