Thomas Gayner - Markel Group Portfolio Q2'2025: Top Holdings & Recent Changes
Welcome to the Value Sense Blog, your resource for insights on the stock market! At Value Sense, we focus on intrinsic value tools and offer stock ideas with undervalued companies. Dive into our research products and learn more about our unique approach at valuesense.io
Explore diverse stock ideas covering technology, healthcare, and commodities sectors. Our insights are crafted to help investors spot opportunities in undervalued growth stocks, enhancing potential returns. Visit us to see evaluations and in-depth market research.
Tom Gayner, Chief Investment Officer of Markel Corporation and architect of the company's equity portfolio, has built a reputation as one of the insurance industry's most astute long-term investors. His Q2 2025 portfolio showcases $11.8 billion deployed across 137 positions, reflecting a patient, quality-focused approach that mirrors Warren Buffett's investment philosophy. What distinguishes Gayner's strategy is his remarkable discipline—with an average holding period of 28 quarters and a modest 2.9% turnover rate, he embodies the principle that time in the market beats timing the market.
Portfolio Philosophy: Quality, Patience, and Diversification
Portfolio Highlights (Q2 2025): - Market Value: $11.8B - Top 10 Holdings: 39.8% - Portfolio Size: 137 +2 - Average Holding Period: 28 quarters - Turnover: 2.9%
Gayner's investment approach stands in sharp contrast to the concentrated strategies employed by activist investors or hedge fund managers chasing quarterly returns. With his top 10 holdings representing less than 40% of the portfolio, he maintains meaningful diversification while still expressing conviction through position sizing. This structure reflects Markel's insurance business model, where capital preservation and steady compounding take precedence over spectacular short-term gains.
The Q2 2025 portfolio reveals an investor who makes changes thoughtfully and incrementally. With a turnover rate of just 2.9%, Gayner demonstrates that successful investing doesn't require constant activity. Instead, his strategy centers on identifying quality businesses trading at reasonable valuations and allowing them to compound over decades. The 28-quarter average holding period—translating to seven years—provides empirical evidence that he practices what he preaches about long-term investing.
Adding two new positions to reach 137 total holdings suggests Gayner continues to find attractive opportunities despite elevated market valuations. This measured portfolio expansion indicates he's deploying capital selectively rather than sitting on excessive cash reserves or forcing investments into a market he doesn't understand.
Holdings Overview: Blue-Chip Quality Across Sectors
Gayner's Q2 2025 holdings reveal a preference for established businesses with durable competitive advantages. The portfolio's largest positions span insurance, technology, and industrials, with several notable adjustments during the quarter.
Berkshire Hathaway Class A shares represent 6.9% of the portfolio at $811.9 million, with no changes during the quarter. An additional position in Berkshire Hathaway Class B adds another 6.3% ($744.2 million), making Buffett's conglomerate the portfolio's dominant exposure at over 13% combined. This "meta-investment" in Berkshire provides diversified exposure to Buffett's carefully selected businesses while demonstrating Gayner's respect for his intellectual predecessor.
Brookfield Corporation ranks fourth at 4.6% ($539.1 million), unchanged from the previous quarter. Brookfield's global alternative asset management platform and infrastructure investments align with Gayner's preference for businesses with sustainable competitive advantages and long-term growth potential.
Technology exposure comes through several core holdings. Alphabet represents 4.1% ($487.8 million) of the portfolio with no changes, while Amazon holds 3.8% ($445.5 million), also unchanged. These positions reflect Gayner's recognition that dominant technology platforms have become essential infrastructure for the modern economy. Notably, Gayner added 2.69% to a separate Alphabet Class C position worth $100.8 million, signaling continued confidence in Google's business model.
Industrial stalwart Deere & Company received a minuscule 0.02% addition to reach 3.8% of the portfolio ($446.4 million). While the adjustment is negligible, maintaining this substantial position demonstrates conviction in Deere's agricultural and construction equipment franchises despite cyclical headwinds.
Visa remains a cornerstone holding at 3.0% ($354.8 million), unchanged during the quarter. The payment processing giant's toll-booth business model and secular growth tailwinds from digital payments make it a quintessential Gayner investment—high returns on capital, pricing power, and long runways for growth.
Home Depot holds 2.9% ($337.3 million) with no changes, representing Gayner's thesis on the resilience of home improvement spending and Home Depot's dominant competitive position. Analog Devices rounds out the top ten at 2.3% ($277.9 million), providing exposure to essential semiconductor content across industrial, automotive, and communications applications.
Beyond the top ten, several positions saw meaningful activity. Microsoft received a 0.91% increase to reach 2.2% of the portfolio ($262.4 million), likely reflecting confidence in the company's cloud computing dominance and artificial intelligence positioning. Watsco, a distributor of air conditioning and heating equipment, saw a 4.29% reduction to 2.1% ($249.6 million)—one of the quarter's more significant trims, possibly due to valuation concerns or position sizing discipline.
Meta Platforms received a tiny 0.07% addition to reach 1.7% ($206.9 million), suggesting Gayner sees value in Facebook's advertising platform despite ongoing regulatory scrutiny. LPL Financial Holdings saw a 1.02% increase to 1.7% ($204.2 million), indicating growing conviction in the wealth management platform's ability to capture advisor market share.
Two additional holdings merit attention for their additions. Marsh & McLennan, a fellow insurance services company, received a 0.71% boost to 1.4% ($163.7 million). Lowe's saw a 1.27% increase to 1.3% ($159.1 million), joining Home Depot in Gayner's home improvement thesis. Perhaps most intriguing, Novo Nordisk received a substantial 5.05% addition to reach 1.3% ($155.9 million), reflecting opportunistic buying in the GLP-1 obesity treatment leader following recent volatility. Caterpillar received a small 0.18% addition to 1.1% ($127.6 million), complementing the Deere position in construction and agricultural equipment.
What the Portfolio Reveals About Gayner's Current Strategy
The Q2 2025 holdings provide several insights into Gayner's investment thinking and market outlook. First, his willingness to maintain substantial Berkshire Hathaway exposure demonstrates humility—by investing significantly in Buffett's conglomerate, Gayner acknowledges that sometimes the best investment is giving capital to another great capital allocator rather than trying to replicate their success position by position.
Second, the portfolio shows balanced exposure across secular growth and cyclical value. Technology positions in Alphabet, Amazon, Microsoft, and Meta provide growth exposure, while industrials like Deere, Caterpillar, and aerospace holdings offer value and cyclical recovery potential. This diversification reflects Gayner's insurance background, where managing downside risk is as important as capturing upside potential.
Third, the extremely low turnover rate of 2.9% reveals an investor who ignores short-term market noise. In an era of algorithm-driven trading and quarterly performance pressures, Gayner's patience stands out. This approach not only minimizes trading costs and tax drag but also allows compound interest to work its magic over multi-year periods.
Fourth, his incremental position adjustments—adding small percentages to existing winners like Microsoft, Novo Nordisk, and LPL Financial—suggest a dollar-cost averaging mentality even within a large institutional portfolio. Rather than making dramatic all-or-nothing bets, Gayner builds positions gradually as his conviction develops and valuations become attractive.
Finally, the modest reduction in Watsco, one of the portfolio's larger positions, demonstrates disciplined profit-taking. When positions grow beyond their target weights or valuations become stretched, Gayner trims rather than eliminating entirely, maintaining exposure to quality businesses while managing portfolio balance.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| Berkshire Hathaway Class A | $811.9M | 6.9% | No change |
| Berkshire Hathaway Class B | $744.2M | 6.3% | No change |
| Brookfield Corporation | $539.1M | 4.6% | No change |
| Alphabet Inc. | $487.8M | 4.1% | No change |
| Deere & Co. | $446.4M | 3.8% | Add 0.02% |
| Amazon.com Inc. | $445.5M | 3.8% | No change |
| Visa Inc. | $354.8M | 3.0% | No change |
| Home Depot Inc. | $337.3M | 2.9% | No change |
| Analog Devices Inc. | $277.9M | 2.3% | No change |
The concentration analysis reveals a well-balanced top ten with no single position dominating risk. The largest individual holding, Berkshire Hathaway Class A at 6.9%, is itself a diversified conglomerate, effectively reducing concentration risk further. This stands in stark contrast to activist investors or concentrated value managers who might have 20-30% in their top position.
The relative stability in top holdings—with eight of ten showing no changes and only Deere receiving a negligible addition—demonstrates that Gayner views these as core, long-term positions rather than trading vehicles. These are businesses he expects to own for years, allowing them to compound through business cycles and market volatility.
Interestingly, the top ten represents just 39.8% of the total portfolio, meaning 60.2% is distributed across the remaining 127 positions. This structure provides downside protection through diversification while still expressing meaningful conviction through position sizing. It's a portfolio designed for steady, predictable returns rather than outsized gains or catastrophic losses.
Investment Lessons from Tom Gayner's Approach
Patience Pays Dividends: With a 28-quarter average holding period, Gayner demonstrates that wealth accumulation comes from time in the market, not trading frequency. His 2.9% turnover means he's essentially rebuilding his entire portfolio every 34 years—a timeframe that allows compound interest to work its magic while minimizing taxes and transaction costs.
Diversification Without Dilution: Managing 137 positions might seem excessive to concentrated value investors, but Gayner shows how broad diversification can coexist with meaningful conviction. His top positions are large enough to matter, while the long tail provides exposure to numerous opportunities without creating tracking error against a benchmark.
Quality Over Everything: Every major holding—from Berkshire to Visa to Amazon—represents a business with sustainable competitive advantages, high returns on capital, and strong management teams. Gayner doesn't chase turnarounds, distressed situations, or speculative growth stories. He buys great businesses and lets them compound.
Learn from the Best, Then Add Your Own Twist: The substantial Berkshire position shows intellectual humility, but Gayner's portfolio differs significantly from Buffett's in its technology exposure and number of holdings. He studies the masters but adapts their principles to his own strengths and Markel's requirements as an insurance company.
Incremental Moves Compound Over Time: Rather than making dramatic portfolio shifts, Gayner adds or trims positions by small percentages. This approach reduces the risk of poorly-timed large moves while allowing him to build positions as his conviction grows and valuations become attractive.
Looking Ahead: Steady Compounding in Uncertain Times
Gayner's Q2 2025 portfolio positioning suggests cautious optimism rather than aggressive market timing. The addition of two new positions indicates he's finding selective opportunities, but the modest overall turnover shows no urgency to dramatically reposition ahead of potential market disruptions.
The continued emphasis on quality businesses with pricing power—Visa, Berkshire, Alphabet, Amazon—positions the portfolio well for an inflationary environment where companies lacking pricing power will struggle. These businesses can pass cost increases to customers while maintaining or expanding margins, a critical capability in the current economic climate.
The healthcare addition through Novo Nordisk's GLP-1 franchise provides exposure to one of pharmaceutical's most exciting growth areas, though the timing after recent volatility suggests value-oriented opportunism rather than momentum chasing. This position could grow significantly if Gayner continues building the stake during market uncertainty around obesity treatment adoption rates and competitive dynamics.
Industrial holdings in Deere and Caterpillar face near-term headwinds from agricultural commodity price pressures and construction cycle concerns, but Gayner's long holding periods mean he can look through cyclical weakness to structural positioning. Both companies have strengthened their competitive positions during recent boom years, setting up for market share gains when conditions normalize.
The technology positions, particularly the Alphabet additions, suggest Gayner sees the artificial intelligence revolution as genuine rather than hype. Google's search monopoly provides the data and compute resources to dominate AI applications, while Microsoft's cloud platform offers similar advantages. These positions reflect conviction that today's technology leaders will remain tomorrow's despite disruption rhetoric.
FAQ about Tom Gayner and Markel Group Portfolio
Q: How does Tom Gayner's investment approach differ from Warren Buffett's despite their similarities?
While both emphasize quality businesses, long holding periods, and patient capital allocation, Gayner manages a more diversified portfolio (137 positions versus Berkshire's concentrated holdings) and shows greater willingness to invest in technology companies. His insurance background at Markel shapes portfolio construction differently than Berkshire's conglomerate structure, leading to broader diversification and more incremental position adjustments rather than Buffett's larger, more dramatic moves.
Q: Why does Gayner hold both Berkshire Hathaway Class A and Class B shares?
The dual Berkshire position totaling over 13% of the portfolio likely reflects different purchase timing and tax considerations. Class A and B shares have identical economic rights per dollar invested, but holding both allows flexibility in position management and may result from accumulated purchases over many years. It demonstrates Gayner's exceptional conviction in Buffett's capital allocation while effectively outsourcing a significant portion of equity exposure to Berkshire's diversified operations.
Q: What does the 28-quarter average holding period tell us about Gayner's strategy?
This seven-year average holding period reveals an investor focused on business fundamentals rather than market fluctuations. It allows portfolio companies to execute long-term strategies, reduces tax drag from constant turnover, and minimizes trading costs. Perhaps most importantly, it forces disciplined initial research since Gayner knows he'll likely own these businesses through multiple business cycles, requiring confidence in management quality, competitive positioning, and economic moat durability.
Q: How can individual investors track and learn from Tom Gayner's portfolio moves?
Investors can monitor Gayner's holdings through quarterly 13F filings, which institutional investment managers must file within 45 days of each quarter-end. ValueSense tracks these filings at valuesense.io/superinvestors/markel-group, providing detailed analysis of position changes, portfolio statistics, and historical trends. However, remember that 13F filings show positions as of quarter-end with a 6-week lag, so they shouldn't be used for short-term trading but rather for understanding long-term conviction and strategy.
Q: What sectors or themes is Gayner currently emphasizing in his portfolio?
The Q2 2025 portfolio shows balanced exposure across financial services (Berkshire, Visa, LPL Financial), technology platforms (Alphabet, Amazon, Microsoft, Meta), industrials (Deere, Caterpillar, Brookfield), and consumer durables (Home Depot, Lowe's). The Novo Nordisk addition signals interest in healthcare innovation, while maintained semiconductor exposure through Analog Devices provides technology manufacturing leverage. This diversification suggests Gayner isn't making concentrated sector bets but rather selecting best-in-class businesses across industries, consistent with his quality-focused approach.
Explore More Investment Opportunities
For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:
📌 50 Undervalued Stocks (Best overall value plays for 2025)
📌 50 Undervalued Dividend Stocks (For income-focused investors)
📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)
🔍 Check out these stocks on the Value Sense platform for free!