Pat Dorsey

Investment Philosophy

Pat Dorsey is the founder of Dorsey Asset Management and the former Director of Equity Research at Morningstar, where he built the economic moat rating framework that has become one of the most widely used tools in fundamental investing. His books The Five Rules for Successful Stock Investing and The Little Book That Builds Wealth have become essential references for understanding competitive advantages. Dorsey’s investment philosophy centers on one core principle: the only companies worth owning are those with durable competitive advantages — or economic moats — that protect high returns on invested capital from competitive erosion.

He categorizes moats into four types: intangible assets (brands, patents, regulatory licenses), switching costs, network effects, and cost advantages. What separates Dorsey from other moat-focused investors is his insistence that a moat alone is not enough — the business must also be purchased at a price that provides an adequate margin of safety relative to his estimate of intrinsic value.

Current Portfolio

Source: SEC 13F Filing (Q4 2025)

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