Insights into Francis Chou (Trades, Portfolio)'s Fourth Quarter 2024 Investment Decisions

Francis Chou (Trades, Portfolio) recently submitted the 13F filing for the fourth quarter of 2024, providing insights into his investment moves during this period. Francis Chou (Trades, Portfolio), the fund manager of Chou America Mutual Funds, has been managing the Chou Funds in Canada since 1986. Chou's experience is an amazing success story of value investing. He came to Canada in 1976 at age 20 with $200 in his pocket. Without a college degree, he could only work on blue collar jobs. Finally, he landed a job at Bell Canada as a telephone repairman. During that time, he was introduced to the books of Benjamin Graham. In 1981, together with six of his fellow telephone repairmen, Chou started an investment club with $51,000. He left Bell Canada in 1984 and became a retail analyst at GW Asset Management, where he met Prem Watsa (Trades, Portfolio), the future Fairfax CEO. He turned the investment club into the Chou Associates Fund in 1986, and the rest is history. When asked about what the most important things are for him in investing, Chou said: "Buy bargains. Get the returns slowly. Think independently. Don't be afraid of what other people are saying." The investment process followed in selecting equity investments for the Funds is a value-oriented approach that involves a detailed analysis of the strengths of individual companies, with much less emphasis on short-term market factors. Far greater importance is placed upon an assessment of a company's balance sheet, cash flow characteristics, profitability, industry position, special strengths, future growth potential and management ability.

Summary of New Buy

Francis Chou (Trades, Portfolio) added a total of 1 stock, among them:

• The most significant addition was Sunrise Communications AG (SNRE, Financial), with 2,400 shares, accounting for 0.07% of the portfolio and a total value of $103,390.

Key Position Increases

Francis Chou (Trades, Portfolio) also increased stakes in a total of 1 stock, among them:

• The most notable increase was Synchrony Financial (SYF, Financial), with an additional 22,500 shares, bringing the total to 215,702 shares. This adjustment represents a significant 11.65% increase in share count, a 1% impact on the current portfolio, with a total value of $14,020,630.

Summary of Sold Out

Francis Chou (Trades, Portfolio) completely exited 2 holdings in the fourth quarter of 2024, as detailed below:

• Occidental Petroleum Corp (OXY, Financial): Francis Chou (Trades, Portfolio) sold all 200,000 shares, resulting in a -6.46% impact on the portfolio.
• Navient Corp (NAVI, Financial): Francis Chou (Trades, Portfolio) liquidated all 264,245 shares, causing a -2.58% impact on the portfolio.

Key Position Reduces

Francis Chou (Trades, Portfolio) also reduced positions in 4 stocks. The most significant changes include:

• Reduced Berkshire Hathaway Inc (BRK.A, Financial) by 4 shares, resulting in a -4.44% decrease in shares and a -1.73% impact on the portfolio. The stock traded at an average price of $692,646 during the quarter and has returned 1.07% over the past 3 months and 4.23% year-to-date.
• Reduced Liberty Global Ltd (LBTYA, Financial) by 109,823 shares, resulting in a -90.15% reduction in shares and a -1.45% impact on the portfolio. The stock traded at an average price of $11.85 during the quarter and has returned -7.77% over the past 3 months and -13.99% year-to-date.

Portfolio Overview

At the fourth quarter of 2024, Francis Chou (Trades, Portfolio)'s portfolio included 32 stocks, with top holdings including 39.91% in Berkshire Hathaway Inc (BRK.A), 10.69% in Alphabet Inc (GOOG, Financial), 9.56% in $Synchrony Financial(SYF-B)$ (SYF, Financial), 7.51% in Apple Inc (AAPL, Financial), and 5.54% in Ally Financial Inc (ALLY, Financial).

The holdings are mainly concentrated in 7 of all the 11 industries: Financial Services, Communication Services, Technology, Consumer Cyclical, Industrials, Energy, and Basic Materials.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.