Founder of Toronto-based Chou Associates Management Francis Chou
is a celebrated value investor whose philosophy rests on rigorous analysis of each company’s “balance sheet, cash flow characteristics, profitability, industry positions, special strengths, future growth potential and management ability.” The more a stock appears undervalued as calculated with the above data, the more of his fund he allocates to it, and margin of safety is paramount. For instance, he bought a sizable position in computer-maker Dell (DELL
) when it fell out of favor in the latter half of 2012.
Chou is also a fan of Berkshire Hathaway (BRK.A
), Resolute Forest Products Inc. (TSX:RFP
) and Overstock.com Inc. (OSTK
), which along with Dell hold the top four places in his funds. Continue Reading »