Steven Check / Check Capital Management Q3 2026 13F Portfolio Analysis: A 99% Disney Trim and Core Value Moves

Check Capital Management’s Form 13F filing for the third quarter of 2026 (period ended September 30, 2026) reveals a decisive reallocation within its concentrated portfolio, headlined by a near-total 99% liquidation of its position in The Walt Disney Co. (DIS). Managing Director Steven Check reduced the firm's Disney holding by approximately $46.8 million, leaving a residual position of just $441,839 (0.0% of reported equity). Overall, Check Capital Management acted as a firm net seller during the quarter, executing total buys of approximately $24.6 million against total sells of $64.4 million, resulting in net equity divestments of roughly $39.8 million and a disciplined quarterly turnover rate of ~1.8%. For value-oriented investors who analyze portfolios through Warren Buffett’s owner-earnings framework, this rebalance offers a clear demonstration of sell discipline: harvesting capital from an enterprise whose equity price had significantly outpaced its underlying intrinsic value, while reallocating capital into higher-conviction financial compounders and new opportunistically priced positions.

The investor: philosophy, fund and lifetime work#

Check Capital Management was founded by Steven Check in Costa Mesa, California (SEC Form 13F CIK: 0001032814). The firm operates as a long-term value manager, constructing concentrated, low-turnover equity portfolios tailored primarily for high-net-worth individuals and families. Classified by DeepValues Research under the value investment discipline, Check’s capital allocation strategy is explicitly modeled after Warren Buffett’s discounted owner-earnings framework.

The central anchor of Check Capital Management’s portfolio architecture is Berkshire Hathaway, held across both Class A (BRK.A) and Class B (BRK.B) common shares, alongside a strategic allocation to call options on Berkshire. Prior to the Q3 2026 filing period, as of June 30, 2026, the firm reported US long equity holdings of approximately $1.6 billion across 14 positions, dominated by core holdings in Berkshire Hathaway, Alphabet, Brookfield Corporation, and Markel Group.

Check’s philosophy relies on thorough business evaluation, multi-year holding periods, and strict valuation discipline relative to prevailing market prices. The manager avoids tactical macro trading, preferring to allow high-conviction compounders to grow intrinsic value over extended horizons while maintaining low quarterly portfolio turnover.

The portfolio at quarter end: size, concentration, core holdings#

As of September 30, 2026, Check Capital Management reported $1.34 billion in US long equities distributed across 15 positions. This represents a contraction from the $1.45 billion reported across 14 positions at the end of Q2 2026, driven by net equity sales and market price adjustments.

The portfolio exhibits extreme structural concentration: the ten largest positions represent 96.7% of total reported equity value. Berkshire Hathaway Class B alone accounts for over a third of total assets at 34.2%.

The table below details the complete reported US long equity portfolio of Check Capital Management as of September 30, 2026, ordered by descending market value.

What changed: new, added, trimmed and sold-out positions#

During the third quarter of 2026, Check Capital Management initiated 1 new position, added to 3 existing holdings, trimmed 10 positions, and fully liquidated 0 positions. Total purchases were approximately $24.6 million against total sales of approximately $64.4 million (calculated at quarter-end prices). This resulted in net equity divestments of ~$39.8 million and a quarterly portfolio turnover rate of ~1.8%.

(Note: SEC Form 13F disclosures report equity holdings but do not state internal managerial motives. All discussion of underlying trade rationale reflects analytical inference by DeepValues Research.)

Transactions organized strictly by trade dollar magnitude (largest trade first):

1. Walt Disney Co (DIS) — Trimmed 99% (~$46.8M Sold) * Quarter-End Status: $441,839 (0.0% of portfolio). * Trade Breakdown: Divested 99% of share count. Inferred Rationale: The equity price advanced substantially beyond calculated base intrinsic value, triggering sell discipline to harvest capital.

2. Brookfield Corporation (BN) — Added 10% (~$16.2M Bought) * Quarter-End Status: $177.0M (11.1% of portfolio). * Trade Breakdown: Expanded share count by 10%. Inferred Rationale: High conviction in Brookfield's asset management compounding model at attractive entry valuations.

3. Berkshire Hathaway Inc Class B (BRK.B) — Trimmed 2% (~$10.6M Sold) * Quarter-End Status: $546.6M (34.2% of portfolio). * Trade Breakdown: Reduced share count by 2%. Inferred Rationale: Routine portfolio sizing or client liquidity management; Berkshire remains the firm's central core holding.

4. Markel Group Inc. (MKL) — Added 4% (~$5.0M Bought) * Quarter-End Status: $140.7M (8.8% of portfolio). * Trade Breakdown: Increased share count by 4%. Inferred Rationale: Continued accumulation of a high-quality specialty insurer modeled on Berkshire's structural architecture.

5. Zoetis Inc. (ZTS) — New Position (~$2.7M Bought) * Quarter-End Status: $2.7M (0.2% of portfolio). * Trade Breakdown: Initialized new holding. Inferred Rationale: Accumulation of a premier animal health franchise trading below its calculated base intrinsic value.

6. AerCap Holdings N.V. (AER) — Trimmed 2% (~$2.3M Sold) * Quarter-End Status: $113.7M (7.1% of portfolio). * Trade Breakdown: Trimmed 2% of shares. Inferred Rationale: Minor portfolio weight rebalancing.

7. First Citizens BancShares Inc (FCNCA) — Trimmed 1% (~$1.3M Sold) * Quarter-End Status: $90.1M (5.6% of portfolio). * Trade Breakdown: Reduced share count by 1%. Inferred Rationale: Marginal position rebalancing.

8. LKQ Corporation (LKQ) — Trimmed 3% (~$1.2M Sold) * Quarter-End Status: $41.8M (2.6% of portfolio). * Trade Breakdown: Reduced share count by 3%. Inferred Rationale: Minor allocation trim.

9. Sirius XM Holdings Inc. (SIRI) — Trimmed 1% (~$998,295 Sold) * Quarter-End Status: $74.8M (4.7% of portfolio). * Trade Breakdown: Trimmed share count by 1%. Inferred Rationale: Minor position maintenance.

10. Fairfax Financial Holdings Ltd (FRFHF) — Added 17% (~$540,796 Bought)

    • Quarter-End Status: $3.6M (0.2% of portfolio).
    • Trade Breakdown: Added 17% more shares. Inferred Rationale: Opportunistic expansion of a smaller property and casualty insurance position.

11. Jefferies Financial Group Inc. (JEF) — Trimmed 1% (~$404,802 Sold)

    • Quarter-End Status: $31.0M (1.9% of portfolio).
    • Trade Breakdown: Trimmed 1% of shares. Inferred Rationale: Minor allocation trim.

12. Hershey Co (HSY) — Trimmed 1% (~$361,872 Sold)

    • Quarter-End Status: $32.0M (2.0% of portfolio).
    • Trade Breakdown: Trimmed 1% of shares. Inferred Rationale: Minor allocation trim.

13. Amazon.com Inc (AMZN) — Trimmed 1% (~$312,683 Sold)

    • Quarter-End Status: $51.0M (3.2% of portfolio).
    • Trade Breakdown: Trimmed 1% of shares. Inferred Rationale: Minor allocation trim.

14. Wayfair Inc. (W) — Trimmed 1% (~$141,020 Sold)

    • Quarter-End Status: $17.2M (1.1% of portfolio).
    • Trade Breakdown: Trimmed 1% of shares. Inferred Rationale: Minor allocation trim.

The biggest moves, valued#

DeepValues Research executes double-verified discounted cash flow (DCF) and reverse DCF valuations utilizing ten years of SEC XBRL filings (10-K and 10-Q) to evaluate whether manager transactions occur above or below intrinsic value.

Owner Earnings = Operating Cash Flow – Maintenance Capex – Stock-Based Compensation
(Where Maintenance Capex is defined as the lesser of total Capital Expenditure and Depreciation & Amortization).

1. Walt Disney Co. (DIS): Massively Trimmed Above Intrinsic Value#

• Valuation Overview & Price: At the valuation date, Disney traded at $116.75 per share against a Base Intrinsic Value of $64.53 (Conservative Case: $41.70; Optimistic Case: $86.17). This indicates a negative Margin of Safety of -80.9% (the market price stood 80.9% above base intrinsic value, 180.0% above conservative value, and 35.5% above optimistic value).
• Balance Sheet Inputs: Cash and marketable securities of $5.2 billion less debt of $46.0 billion yields a Net Debt position of -$40.9 billion (as of the 2026-06-27 balance sheet). Shares outstanding stood at 1.727 billion.

Ten-Year Owner Earnings Trajectory ($ Billions)#

• Capital Intensity & Cash Flow Dynamics: In the TTM period ended June 27, 2026, Disney generated $17.0 billion in operating cash flow but incurred $8.7 billion in total capital expenditure against $5.5 billion in depreciation. Under DeepValues' owner-earnings framework, $3.2 billion of capex exceeded depreciation and is classified as growth investment. Maintenance owner earnings registered at $9.9 billion, whereas strict owner earnings (subtracting all capex) dropped to $6.8 billion. This capital intensity mismatch highlights that if growth capital fails to earn returns above the cost of capital, the stricter $6.8 billion owner earnings metric provides the truer picture of underlying cash generation.
• Reverse DCF Analysis: At $116.75 (market capitalization $201.6 billion), the market was implying owner-earnings growth of 13.1% per year for 5 years (fading to 2.5% terminal growth at a 10.0% discount rate). This growth requirement significantly exceeds Disney's actual 10-year historical owner-earnings growth rate of 4.6%.
• Investor Action Alignment: Steven Check’s sale of 99% of Check Capital’s Disney position (~$46.8M) directly aligns with strict value principles: liquidating an asset whose market price ($116.75) had detached substantially from its base intrinsic value ($64.53).

2. Zoetis Inc. (ZTS): A New Position Established Below Intrinsic Value#

• Valuation Overview & Price: At the valuation date, Zoetis traded at $79.40 per share, compared to a Base Intrinsic Value of $92.58 (Conservative Case: $64.98; Optimistic Case: $119.31). This offers a base Margin of Safety of 14.2% (and an optimistic Margin of Safety of 33.5%).
• Balance Sheet Inputs: Cash and marketable securities of $1.5 billion less debt of $9.0 billion results in a Net Debt position of -$7.5 billion (as of the 2026-09-30 balance sheet). Shares outstanding totaled 0.406 billion.

Ten-Year Owner Earnings Trajectory ($ Billions)#

• Reverse DCF Analysis: At $79.40 (market capitalization $32.3 billion), the market implies owner-earnings growth of 8.0% per year for 5 years (fading to 2.5% at a 10.0% discount rate). This growth requirement sits below Zoetis’s 10-year historical owner-earnings growth rate of 10.3%.
• Investor Action Alignment: Check initiated a new $2.7 million holding in Zoetis at $79.40, acquiring a high-moat animal health franchise below its base intrinsic value of $92.58 and securing a 14.2% margin of safety.

3. LKQ Corporation (LKQ): Trimmed Despite Significant Margin of Safety#

• Valuation Overview & Price: At the valuation date, LKQ traded at $20.05 per share, compared to a Base Intrinsic Value of $40.99 (Conservative Case: $34.13; Optimistic Case: $50.67). The stock traded at a broad Margin of Safety of 51.1% (41.2% conservative MOS; 60.4% optimistic MOS).
• Balance Sheet Inputs: Cash and marketable securities of $0.3 billion less debt of $0.0 billion yields a Net Cash position of +$0.3 billion (as of the 2026-09-30 balance sheet). Shares outstanding stood at 0.252 billion.

Ten-Year Owner Earnings Trajectory ($ Billions)#

• Reverse DCF Analysis: At $20.05 (market capitalization $5.1 billion), the market implies that LKQ’s owner earnings will contract by -6.6% per year over the next 5 years (fading to 2.5% at a 10.0% discount rate), contrasting with LKQ's 10-year historical growth rate of +6.9%.
• Investor Action Alignment: Check trimmed 3% (~$1.2M) of the firm's LKQ holding. Given that LKQ trades at a 51.1% discount to base intrinsic value ($20.05 vs $40.99), it is inferred that this minor sell-down reflects routine portfolio rebalancing or marginal liquidity management rather than a fundamental reduction in intrinsic value confidence.

Track record: the ten-year 13F clone against the S&P 500#

To evaluate the long-term historical efficiency of Check Capital Management’s public US equity selection, DeepValues tracks a simulated 13F Clone portfolio over a 10-year period from November 7, 2016, to November 6, 2026 (spanning 42 quarterly filings).

Clone Methodology#

• Execution: Reported US long equity positions are purchased at the market close on the first trading day following the public 13F filing date.
• Weighting & Returns: Positions are weighted by reported market value, dividend-adjusted, and rebalanced quarterly.
• Benchmark: SPDR S&P 500 ETF Trust (SPY) total return over the identical time frame.

Performance Summary (10.0-Year Window)#

• Compound Annual Growth Rate (CAGR): 13F Clone 10.6% vs. SPY 15.0% (Underperformance of -4.4 percentage points/year).
• Cumulative Total Return: 13F Clone +173.9% vs. SPY +303.9%.
• Maximum Drawdown: 13F Clone -30.7% vs. SPY -23.9% (month-end basis).
• Best Single Year: 2021 — 13F Clone +30.9% vs. SPY +28.7%.
• Worst Single Year: 2022 — 13F Clone -10.3% vs. SPY -18.2%.

Annual Performance Breakdown Table#

*Partial year performance within the 10-year tracking period.

Portfolio Characteristics#

• Average Holdings Count: 47 positions across the tracking horizon.
• Concentration: Top 10 positions averaged 79.9% of portfolio value.
• Turnover: Average quarterly turnover of 7.6%.
• Price Coverage: Price coverage averaged 81.9% of total reported value; unpriced holdings were excluded and remaining positions reweighted.

Crucial Clone Caveats#

A 13F clone is an artificial model and does not reflect the actual fund returns of Check Capital Management. The calculation structurally excludes: 1. Cash allocations and interest income. 2. Options contracts (such as Check Capital's significant Berkshire Hathaway call option positions). 3. Non-US foreign listed equities. 4. Fixed income holdings. 5. Short positions and intra-quarter trades executed and closed between filing dates. 6. The impact of the 45-day reporting lag post-quarter end.

What a patient investor can learn#

Steven Check’s Q3 2026 filings provide key insights for value-disciplined investors:

1. Unforgiving Sell Discipline on Overvaluation:
   The near-total liquidation of Disney demonstrates that value investing requires strict exit discipline. When market price ($116.75) significantly exceeds calculated base intrinsic value ($64.53), a value manager harvests capital regardless of brand strength or market narrative.

2. High Conviction in Core Compounders:
   Check demonstrates conviction by concentrating assets in premier compounders. Allocating 34.2% of reported equities to Berkshire Hathaway Class B (BRK.B) and keeping 96.7% of capital in the top 10 holdings illustrates a commitment to high-conviction ideas.

3. Low Turnover and Patience:
   With a quarterly turnover rate of ~1.8%, Check Capital Management avoids over-trading, allowing long-term investments to compound while acting selectively when compelling opportunities arise (such as initiating Zoetis at a 14.2% margin of safety).

Key numbers: a short bulleted list of the most important figures#

• Reported US Equity Portfolio Size: $1.34 Billion across 15 positions (Q3 2026).
• Top Holdings Concentration: Top 10 positions comprise 96.7% of total reported equity value.
• Largest Holding: Berkshire Hathaway Inc Class B (BRK.B) at $546.6 Million (34.2% of portfolio).
• Largest Exit/Trim: Walt Disney Co (DIS) trimmed by 99% (-$46.8 Million), down to $441,839.
• Largest Additions: Brookfield Corp (BN) added +10% (+$16.2 Million); Markel Group (MKL) added +4% (+$5.0 Million).
• New Position: Zoetis Inc. (ZTS) initialized at $2.7 Million (0.2% of portfolio).
• Net Quarterly Activity: Total Buys ~$24.6 Million | Total Sells ~$64.4 Million | Net Seller of ~$39.8 Million | Turnover ~1.8%.
• 10-Year 13F Clone CAGR: 10.6% vs. S&P 500 (SPY) 15.0% (-4.4 percentage points/year).

Limits of 13F filings and legal disclaimer#

Structural Limits of Form 13F Disclosures#

Form 13F filings provide useful institutional snapshots, but carry inherent limitations: * Time Lag: Filings are submitted up to 45 days after quarter-end. Holdings reflect the portfolio on September 30, 2026, and may have changed prior to public release on November 05, 2026. * Incomplete Asset Coverage: Form 13F mandatorily reports only US-listed long equity positions. It excludes short positions, cash allocations, non-US foreign listings, bonds, options (such as Check Capital's Berkshire call options), and commodities. * No Intra-Quarter Visibility: Positions bought and sold entirely within a calendar quarter are omitted from 13F reports.

Legal Disclaimer#

This analysis is prepared strictly for educational and research purposes by DeepValues Research and does not constitute financial or investment advice. Intrinsic value estimates and cash flow calculations are quantitative models derived from historical SEC XBRL filings under specific parameters. Past performance, including simulated 13F clone tracking, is non-indicative of future returns. Investors must conduct independent analysis and consult a certified financial advisor prior to making investment decisions.