Here’s Why Giverny Capital Asset Management Sold Align Technology (ALGN)

1 month ago 30

Soumya Eswaran

Fri, January 30, 2026 astatine 8:20 AM CST 4 min read

Giverny Capital Asset Management, LLC, an concern absorption company, precocious published its fourth-quarter 2025 capitalist letter. A transcript of the aforesaid tin beryllium downloaded here. The Portfolio returned 0.01% compared to 2.66% for the S&P 500. YTD, the money returned 12.58% compared to 17.88% for the Index. The steadfast faced a challenging 4th fourth and calendar year, contempt coagulated appreciation. The outperformance of a fewer ample exertion companies has negatively impacted performance, fixed the portfolio's underweight successful ample tech and overweight successful smaller niche leaders. While portfolio companies are excelling successful net maturation and superior returns, the marketplace is fixated connected AI investments, leaving the existent benefits unclear. Additionally, you tin reappraisal the Portfolio’s apical 5 holdings to spot its champion picks for 2025.

In its fourth-quarter 2025 capitalist letter, Giverny Capital Asset Management highlighted Align Technology, Inc. (NASDAQ:ALGN), which it exited during the year. Align Technology, Inc. (NASDAQ:ALGN) designs, manufactures, and markets Invisalign wide aligners and iTero intraoral scanners and services. The one-month instrumentality of Align Technology, Inc. (NASDAQ:ALGN) was 5.18%, and its shares mislaid 25.10% of their worth implicit the past 52 weeks. On January 29, 2026, Align Technology, Inc. (NASDAQ:ALGN) banal closed astatine $164.12 per share, with a marketplace capitalization of $11.896 billion.

Giverny Capital Asset Management stated the pursuing regarding Align Technology, Inc. (NASDAQ:ALGN) successful its 4th fourth 2025 capitalist letter:

" In the 4th fourth we exited CarMax, Fiserv and Align Technology. Align Technology, Inc. (NASDAQ:ALGN): The shaper of Invisalign wide aligners, Align has a terrific merchandise and should, implicit time, displace wires and brackets arsenic the preferred mode to straighten teeth. What is besides wide to me, however, is that if wide aligners displace braces, they volition besides spell immoderate mode to displacing orthodontists. The orthodontist assemblage – good educated, highly trained and handsomely paid, prefers not to facilitate its ain demise. With metallic braces, the 5 orthodontist oversees treatment. With wide aligners, a integer scanner does. Few adults with crooked teeth would hold to deterioration braces, truthful Align fundamentally created a caller marketplace for adults that did not endanger orthodontists’ livelihood. Indeed, it continues to predominate the marketplace for big orthodontia.