His investment strategy

His investment strategy

Now that we've established Pat's credentials, it's time to discuss how he executes that investment magic not available in any app store.

His strategy centers on identifying and understanding the unique DNA of companies. Pat isn't hunting unicorns but rather businesses with clear competitive moats. He meticulously analyzes how companies generate their revenue and manage costs—in essence, a Sherlock Holmes of finance.

Dorsey's strategy library includes, but is not limited to:

• Rigorous research: It's not just about numbers but understanding how a company adapts and evolves. Dorsey delves deep, questioning the 'why' behind every data point.

• Long-term investment: Like fine wine, investments need time to mature. Dorsey is the investor who doesn't flinch at the first sign of rain.

• Support for ethical companies: Understanding social and environmental impact is part of the analysis. Corporate responsibility is no longer just for PR reports.

With this methodology, Dorsey can cut through market noise to focus on the essential, evaluating companies with the same rigor a chef selects truffles for their signature dish.

Why he is known

Why he is known

Pat Dorsey is not just another name in the investment arena; he's practically a symphony. As the founder of Dorsey Asset Management and former Director of Research at Morningstar, his résumé is as loaded as an Amazon shopping cart on Black Friday.

Dorsey is renowned for the concept of economic moats, a clever idea that, more than just a play on words, refers to a company's sustainable competitive advantages. These moats are as crucial to a company as coffee is to a Monday morning.

How do you recognize a company with a solid moat? Here's a brief list to spot one:

• Strong brand: Think of the Coca-Colas or Apples of the stock market.

• Economies of scale: When a company becomes more efficient as it grows, lowering its per-unit costs, like Amazon with its logistics.

• High switching costs: The expense associated with changing providers or products is high, akin to switching phones and losing all your contacts. Example: Microsoft Office.

Dorsey's philosophy is more than just eloquent words; it's a structured method of analyzing and understanding investments without being swayed by market whims. For him, patience is not just a virtue but a business model.

This approach has profoundly impacted how many investors consider their portfolios, focusing on long-term possibilities rather than the allure of quick opportunities.