SCHWARTZ INVESTMENT COUNSEL INC

Schwartz Investment Counsel's 129-stock, quality-compounder book was nearly flat in total assets this quarter ($2.86 billion to $2.82 billion), but its largest position tells a pointed story about valuation risk. The firm cut its Texas Pacific Land stake by 13.5% in shares — the position it was most actively selling down — yet TPL's price ran up roughly 65% in the same period, so the holding grew from 4.8% to 6.9% of the portfolio anyway, now comfortably the largest single-name bet in the book. Elsewhere, the trimming was more decisive: Mastercard was cut 19% in shares (-$38 million) and API Group was cut 35% (-$34 million), while Watsco, the HVAC distributor, was exited entirely ($56 million, the largest full sale). The new money went toward a different kind of quality name — a fresh $61 million stake in Verisign, the .com/.net domain registry monopoly, plus new positions in Intel, Rambus, and Entegris that add a semiconductor-recovery tilt. The net message: even a disciplined, low-turnover value shop can end a quarter more exposed to its priciest holding than it intended, simply because selling couldn't keep pace with the rally.