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Francis Chou: Canadian Investing Guru


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Francis Chou: Canadian Investing Guru

 

http://www.gurufocus.com/news.php?id=109914

 

Good article on Mr Chou...some good lines I have not heard of like-"he likes to buy shares in what he jokingly refers to as CRAP (Cannot Realize A Profit) companies. Chou says the market is prone to overreacting when stocks are heading for the toilet, so failing companies are often irrationally valued for less than they would be worth if they liquidated their assets."

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Francis and Tim McElvaine are the two nicest and most genuine people I know in this industry.  My family knows that if I get hit by a bus tomorrow, call Francis and Tim and put the money to work with them...then go and enjoy your life!  Plus don't sell the Fairfax shares!  ;D  Cheers!

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Francis and Tim McElvaine are the two nicest and most genuine people I know in this industry.  My family knows that if I get hit by a bus tomorrow, call Francis and Tim and put the money to work with them...then go and enjoy your life!  Plus don't sell the Fairfax shares!  ;D  Cheers!

 

I recall Biglari was also on your list... good thing he showed it's true colors before your family needed him.

 

BeerBaron

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I recall Biglari was also on your list... good thing he showed it's true colors before your family needed him.

 

BeerBaron

 

Regardless of how I feel about Sardar's compensation plan and the way it was instituted, investors will make money as shareholders in Biglari Holdings.  I didn't pull our capital from Sardar because of his aptitude.  I pulled it because I felt what he did was somewhat unethical and misguided.  Cheers!

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I'm gonna have to disagree with Buffett on this one.

 

"According to Buffett, “Investing is not a game where the guy with the 160 IQ beats the guy with a 130 IQ. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing."

 

 

I'm not disagreeing that the 130 IQ can't beat the 160, but I wouldn't say that an IQ of 130 is "ordinary." Doesn't that put someone in the top 2-3% of intelligence?

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"I'm not disagreeing that the 130 IQ can't beat the 160, but I wouldn't say that an IQ of 130 is "ordinary." Doesn't that put someone in the top 2-3% of intelligence?"

 

you probably know 100 is average + 150 is a genius.

 

but there are people who have incredible IQ's that do not do well because they lack other qualities-attitude, temperament, humility, people skills etc...this was well described in Malcom Gladwell's book Outliers

 

all things being equal I would want as much intelligence as possible

 

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  • 2 years later...

I'm gonna have to disagree with Buffett on this one.

 

"According to Buffett, “Investing is not a game where the guy with the 160 IQ beats the guy with a 130 IQ. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing."

 

 

I'm not disagreeing that the 130 IQ can't beat the 160, but I wouldn't say that an IQ of 130 is "ordinary." Doesn't that put someone in the top 2-3% of intelligence?

 

The quote I remember reading or hearing from WEB regarding IQ and intelligence is something like "If you have a 160 IQ sell 30 points to someone else because the extra 30 wont help you and will probably hurt you".

 

I don't think Buffett is implying that we should all wish for 100 IQ. I think his point is that someone with an IQ of 100 can get decent returns because you have sufficient intelligence, at that point you just need the ability to be rational and grasp the $1 for 50 cent concept. So a 100 IQ investor that "gets" value investing could outperform a 160 IQ investor who knows/thinks he is smarter than everyone else. The later might do really well for a while but might end up blowing up a la LTCM. Of course there is no research to back this up, but I tend to agree with him.

 

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Guest hellsten

And Chou still likes stocks that Mr. Market hates. From the Chou Opportunity Fund shareholder letter (December 31, 2012):

A note of caution: Our portfolio has a high exposure to a few names, such as Resolute Forest Products (formerly known as

AbitibiBowater), Sears Holdings and Overstock.com. Because of the this exposure, the net asset value of the Fund can be volatile.

This volatility does not bother us because our focus has always been on how cheap stocks are relative to their intrinsic value. In my

view, they are trading at significant discounts to their intrinsic value.

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  • 8 months later...

Chou Opportunity's latest holdings 09/30/2013

 

Top Holdings

As of September 30, 2013

Top 10 Holdings percentage of assets

Sears Holdings Corp. 26.5%

Resolute Forest Products Inc. 23.2%

Union Bank Instl. Tr. Depo 19.8%

Overstock.com Inc. 4.7%

MannKind Corp. 4.3%

Dell Inc. 4.3%

JPMorgan Chase warrants 3.9%

MBIA Inc 3.6%

Bank of America warrants 3.6%

UTStarcom Holdings 2.2%

 

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Chou Opportunity's latest holdings 09/30/2013

 

Top Holdings

As of September 30, 2013

Top 10 Holdings percentage of assets

Sears Holdings Corp. 26.5%

Resolute Forest Products Inc. 23.2%

Union Bank Instl. Tr. Depo 19.8%

Overstock.com Inc. 4.7%

MannKind Corp. 4.3%

Dell Inc. 4.3%

JPMorgan Chase warrants 3.9%

MBIA Inc 3.6%

Bank of America warrants 3.6%

UTStarcom Holdings 2.2%

 

 

So does that mean that he bought a lot of SHLD this year? Or he reduced other positions?

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