Francis Chou - Chou Associates Management Investment Strategy & Portfolio Analysis

As of Mar 31, 2026, the Chou Associates Management portfolio managed by Francis Chou demonstrates a sophisticated investment approach with 31 positions and an average holding period of 747 quarters. The strategy focuses on Basic Materials, Communication Services, Consumer Cyclical, Consumer Defensive, Consumer Discretionary, Energy, Financial Services, Healthcare, Industrials, Technology sectors with a typical position size of 6.7% of the portfolio.

The portfolio's risk management approach includes a maximum position size of 7% and sector diversification of 10%, exemplified by the case study of BERKSHIRE HATHAWAY INC DEL (BRK-A). This strategic framework provides insights into Francis Chou's investment philosophy, risk management practices, and long-term value creation approach.

Investment Strategy Metrics

Key metrics revealing investment style, risk management, and performance characteristics

Metric Value Category Description
Holding Period 2.0 years Style Average duration positions are maintained
Position Count 31 Style Number of active positions in portfolio
Position Size 6.7% Risk Typical allocation per position
Win Rate 57.6% Performance Percentage of profitable positions
Average Return 10.2% Performance Mean return across positions
Sharpe Ratio 0.25 Performance Return per unit of risk taken

Investment Case Study: BERKSHIRE HATHAWAY INC DEL (BRK-A)

06/30/2013 - 05/26/2026

Performance Metrics

Total Return: 92,087.47%

Holding Period: 4713 days

Max Position Size: $58,559,098.00

Position Weight: 30.06%

Key Events

06/30/2013: ENTRY (300.00 shares) @ $168.60
03/31/2016: DECREASE (-150.00 shares) @ $213.73
06/30/2020: DECREASE (-50.00 shares) @ $257.86
03/31/2021: INCREASE (50.00 shares) @ $272.00
06/30/2021: DECREASE (-50.00 shares) @ $418.60
12/31/2022: DECREASE (-20.00 shares) @ $468,710.72
06/30/2024: INCREASE (10.00 shares) @ $612,240.73
12/31/2024: DECREASE (-4.00 shares) @ $680,919.74

Investment Thesis

Entry Context: Initial position established based on fundamental analysis

Sector Conditions: Favorable market conditions in the sector

Risk Factors:
  • Market volatility
  • Sector-specific risks

Key Learnings

  • Position sizing is critical for portfolio management
  • Important to monitor sector exposure

Sector Focus

Typical allocation per position by sector focus.

Basic Materials
6.7%
Communication Services
6.7%
Consumer Cyclical
6.7%
Consumer Defensive
6.7%
Consumer Discretionary
6.7%
Energy
6.7%
Financial Services
6.7%
Healthcare
6.7%
Industrials
6.7%
Technology
6.7%