Title: 5 Stocks Superinvestors Are Buying Show: Compounding Quality (Substack, paid post — compoundingquality.net) Guest: Pieter Slegers / Team Compounding Quality (author; signed "Team Compounding Quality") Date: 2026-06-14 URL: https://www.compoundingquality.net/p/5-stocks-superinvestors-are-buying Length: written post — no timestamps Note: Paid-subscriber post captured via Stephen's logged-in session. Body text verbatim; UI chrome removed. Charts and business explainers noted inline as [Image — ...]. The five "main buys" are attributed collectively to "superinvestors" — the post names no individual buyer for any of the five, and the accompanying images are business explainers (TransDigm/Aon/Visa/MercadoLibre investor-relations slides), not 13F tables. Individual investors are named only in the sells section and in the Microsoft/Alphabet section.
You know what's funny?
As a student, you are not allowed to copy from others during your exam.
But as an investor? You can copy the ideas of the best investors in the world.
Let's look at what superinvestors are buying today.
Shameless Copycat
As an investor, you can be a shameless copycat.
You should try to get new ideas and do more of what works.
Charlie Munger copied Benjamin Franklin
Microsoft copied Netscape
Facebook copied Snap and Tiktok.
Mohnish Pabrai summarized it quite well:
[Image — Mohnish Pabrai quote on cloning]
Something very interesting
Do you know what's really interesting?
Software businesses went on sale in the first quarter of 2026.
Why? The market is afraid of AI disruption.
[Image — software sector de-rating. Source: Fiscal.ai]
Warren Buffett said that you should be greedy when others are fearful, and fearful when others are greedy.
That's exactly what superinvestors are doing right now.
A lot of great investors see this as an amazing opportunity to buy compounders at a wild discount.
A perfect example? Constellation Software.
Mohnish Pabrai loves Constellation Software right now.
Here's what he has to say about the company:
[Image — Mohnish Pabrai on Constellation Software]
How Does Constellation Software Make Money?
Constellation Software is the best serial acquirer in the world.
The stock has consistently compounded at +30% per year.
Just 15 years after their IPO in 2006, Constellation had already joined the 100-bagger club. It's an amazing business.
You can find the essentials here:
[Image — Constellation Software onepager]
Why are superinvestors buying?
Replacing Constellation's products would be incredibly expensive and risky
The cost of Constellation's software is minimal compared to the operating costs of most businesses
Constellation Software is currently facing its largest drawdown ever
In short: Constellation Software could be very interesting for long term investors today.
Now let's dive into these two things:
What are superinvestors selling?
What are superinvestors buying?
What are superinvestors selling?
Quality is facing a tough time.
The market seems to be in a mania. A very dangerous to place to be in.
Just look at this tweet:
[Image — tweet on speculative behaviour]
This can't go on forever.
Considering selling quality stocks right now? You'll probably do it at exactly the wrong time.
I think Quality is very well-positioned to outperform (dramatically) in the years ahead.
Main sells of superinvestors
Intuit (INTU)
How does Intuit make money?
Intuit sells subscriptions for its financial, accounting, and tax preparation software.
Think about TurboTax and QuickBooks.
[Image — Intuit revenue split. Source: Intuit Investor Relations]
What happened?
Intuit was trading at very high valuations.
They traded at 50x-70x earnings!
The company had very high switching costs, and was easily able to raise prices every single year.
[Image — Intuit valuation history. Source: Fiscal.ai]
But AI is getting better very fast. Things are changing quickly.
This is a problem for Intuit.
The company might win new customers more slowly than before. Or it might lose some of its power to charge high prices.
So what happened? The stock was already very expensive. On top of that, growth could slow down. That worried some big investors.
Two of them walked away completely.
Fundsmith and AKO Capital sold all their Intuit shares.
A third investor, Dev Kantesaria of Valley Forge, sold about 15% of his Intuit shares.
The S&P 500
Another interesting thing I noticed?
Prem Watsa runs a company called Fairfax Financial.
In his portfolio, he held an S&P 500 index fund. That's a fund that follows the 500 biggest companies in America.
He started selling it in the third quarter of 2025 and completely exited in the first quarter of 2026.
He might think the Big Tech companies are overvalued right now.
What happened?
The S&P 500 is becoming more and more concentrated in the big tech companies:
[Image — S&P 500 concentration. Source: RBC Wealth]
These companies are spending billions on AI.
[Image — AI capital expenditure. Source: Visual Capitalist]
So what does that mean?
The S&P 500 used to be a wide investment in the whole American economy.
Lots of different companies, lots of different industries. But not anymore.
Today it's more of a narrow bet on AI.
A few big tech names decide where it goes.
On top of that, the S&P 500 is very expensive right now.
And we're not just guessing here...
We're looking at Warren Buffett's favorite way to measure the market... The Buffett indicator.
What is the Buffett Indicator?
The Buffett Indicator is a measure of whether the stock market is overvalued or undervalued, calculated by dividing the total value of a country's stock market by its gross domestic product (GDP).
A result above 100% suggests stocks may be overpriced relative to the actual economy.
Today, the Buffett Indicator trades at 219%:
[Image — Buffett Indicator at 219%. Source: Current Market Valuation]
This leads us to another interesting key finding.
Superinvestors Disagree on AI
It looks like superinvestors are trying to figure out who will win and who will lose the AI race.
But they don't agree yet.
Let's dive in.
Microsoft
How does Microsoft make money?
Microsoft sells cloud services, software, and hardware.
They also earn from ads on Bing, LinkedIn, and subscriptions like Microsoft 365 and Xbox Game Pass.
[Image — Microsoft revenue breakdown. Source: App Economy Insights]
Who bought Microsoft?
Bill Ackman's Pershing Square made Microsoft ($MSFT) a core holding.
He bought in at 21 times forward earnings.
He called the company "really cheap" after the stock dropped for a short time following its earnings report.
[Image — Microsoft valuation. Source: Fiscal.ai]
At the same time, Bill Ackman sold his Alphabet position:
[Image — Pershing Square Alphabet exit. Source: Fiscal.ai]
Who sold Microsoft?
Chris Hohn's TCI Fund Management did the exact opposite.
He cut his Microsoft position by more than 80% and bought Alphabet instead.
That makes his Alphabet position 3 times bigger than his Microsoft position.
[Image — TCI position changes. Source: Fiscal.ai]
Hohn seems to bet think the market is getting Google wrong.
He thinks people don't see how big Google really is, how strong its data is, and how much it still rules search.
Another interesting seller of Microsoft stock?
The trust owned by Bill Gates, one of Microsoft's founders.
He sold all his Microsoft stock in the first quarter of 2026.
Now let's get into the most interesting part of this article.
Main buys of superinvestors
What are the 5 stocks superinvestors are heavily buying?
5. TransDigm Group (TDG)
How does the company make money?
TransDigm acquires companies that make essential airplane parts.
[Image — TransDigm Overview slide: "Distinguishing Characteristics — highly engineered aerospace components; proprietary products; significant aftermarket content; high free cash flow." Pro forma revenues: Defense 43%, Comm OEM 25%, Comm Aftermarket 32%; pro forma EBITDA split OEM vs Aftermarket, aftermarket the large majority. Source: TransDigm Investor Relations]
Why it might be interesting
Strong Moat: Around 90% of TransDigm's sales come from products only they make. That means they are the only company allowed to sell these exact parts.
Predictable Demand: Planes follow strict repair schedules and stay in the air for decades. Parts keep wearing out. So airlines and the military have no choice but to buy new TransDigm parts.
Pricing Power: The parts are a must-have, and TransDigm is the only one who sells them. So they can raise prices every year without losing customers.
4. Aon plc (AON)
How does the company make money?
Aon is a global services company. It helps big companies manage risk, find insurance, and handle people-related topics like pay and benefits.
They don't sell the insurance themselves.
Instead, they act as the middleman. They earn fees by building smart risk plans and by working out the best coverage between their clients and the insurance companies.
[Image — Aon business overview. Source: Aon Investor Relations]
Why it might be interesting
Corporate Duopoly: Aon and Marsh McLennan rule the world market for big-company insurance. For huge global firms with very tricky risks, no one else can really do the job.
High Switching Costs: Swapping out a broker like Aon brings big risks and headaches. That's why Aon keeps around 9 out of 10 of its clients, year after year.
Capital-Light Business: Aon is the middleman, not the insurer. So it doesn't carry insurance risk on its books. That means it can turn most of its profit straight into free cash, which it uses to buy back its own shares.
3. Visa Inc. (V)
How does the company make money?
Visa makes money by taking a small fee on every payment that runs through its huge worldwide payment network.
[Image — Visa network economics. Source: Wint Wealth]
Why it might be interesting
Network Effect: Visa runs one of the strongest two-sided networks in the world. People want a Visa card because every shop takes it. And every shop takes Visa because everyone carries one.
Built-In Inflation Hedge: Many of Visa's fees are a small slice of each payment. So when prices rise and the economy grows, Visa's money grows too, all by itself, with no extra cost.
High Profit Margins: Owning a digital toll road is a wonderful business. Once the payment system is built, each new payment costs Visa almost nothing. That's why Visa keeps profit margins above 60%, year after year.
2. ASML Holding N.V. (ASML)
How does the company make money?
ASML makes money by designing and building two kinds of chip machines: EUV and DUV.
These machines use super-precise laser light to print tiny circuit patterns onto silicon wafers.
They sell these machines, which cost hundreds of millions each, straight to the big chipmakers like TSMC, Intel, and Samsung.
They also earn money by servicing and upgrading the machines their customers already own.
Why it might be interesting
A True Monopoly: ASML is the only company on earth that can build EUV machines. Without ASML's tech, it's impossible to make the most advanced chips that power modern phones, powerful computers, and AI.
An AI Toll Road: It doesn't matter which tech giant wins the race for better computers or AI. They all need chipmakers, and those chipmakers buy their machines only from ASML.
Deep Moat: An ASML machine is so complex that almost no one can copy it. Their supply chain is made up of hundreds of special partners. A rival would need decades and hundreds of billions of dollars just to reach where ASML is today.
1. MercadoLibre (MELI)
How does the company make money?
MercadoLibre runs the biggest online shopping marketplace in Latin America.
It earns money by taking a cut and shipping fees on everything people sell on it.
Its money arm, Mercado Pago, handles payments, hands out loans, and gives people a digital wallet.
These two parts work together as one big system, in a region that's growing fast and where many people still don't have a bank account.
[Image — MercadoLibre ecosystem flywheel: listing and sales (MercadoLibre) - payment received (Mercado Pago) - order delivered (Mercado Envios) - growth financing (Mercado Credito); "MercadoLibre connects commerce, payments, logistics, and credit in one seamless platform"]
Why it might be interesting
The Amazon and PayPal of Latin America: MercadoLibre built one big connected system that fixes the two biggest pains in Latin American shopping: getting your stuff delivered and paying safely. This two-sided flywheel makes people stick to the platform.
Growing Fintech: Mercado Pago has grown so big that it broke free from the shopping platform. Now even real shops and small sellers across the region use it for their everyday payments.
Logistics Network: By putting a lot of money into their own delivery system, they reached delivery speeds no one can match in their main markets. That gives them a logistics moat.
Conclusion
Here are the key takeaways from today's article:
Copying is a winning strategy: Some of the most successful investors and companies ever built their fortunes by openly copying great ideas and setups.
The AI fight: Top managers are reshuffling their portfolios based on how they think AI will play out. They're splitting their bets between giants like Microsoft and Alphabet.
What the best investors in the world sold:
Intuit
the S&P 500 index.
What the best investors in the world bought:
TransDigm Group
Aon plc
Visa
ASML
MercadoLibre.
Everything in life compounds Team Compounding Quality
Book: Order your copy of The Art of Quality Investing here
Used sources Interactive Brokers: Portfolio data and executing all transactions Fiscal.ai: Financial data