Francis Chou Portfolio Analysis (December 31, 2021)

Famous superinvestor, Francis Chou, revealed in a recent regulatory filing his newest positions.  In Francis Chou portfolio 2021 analysis, we will go into more detail about top 5 stocks this superinvestor had as of December 31, 2021.

Chou manages his investments via his fund, Chou Associates, which holds about $0.1 billion according to the latest available 13F filling. Click here for the latest available 13F filling.

The most notable stocks in Francis Chou’s Q4 portfolio include Resolute Fst Prods Inc, Berkshire Hathaway Inc Del, Bausch Health Cos Inc, Mbia Inc and Jpmorgan Chase & Co. In addition to others mentioned in detail below.

We used the Q4 portfolio of Francis Chou’s Chou Associates to select his top 5 value stocks. We ranked the securities according to Chou’s stake value in each holding.

Summary

• Francis Chou’s top 5 securities make up 88.9% of the entire portfolio.
• Chou Associates owns position in 15 holdings, managing approximately $0.1 billion.
• Resolute Fst Prods Inc, Chou’s largest holding, makes up 32.7% of the total portfolio.

Resolute Fst Prods Inc (RFP)

Chou Associates’s stake value: $47.3 Million

Percentage of Chou Associates’s 13F Portfolio: 32.7%

Resolute Forest Products Inc does business in Pulp Mills industry and has 7100 employees. Current CEO is Arnold Nemirow.

As of February 16, 2022 Resolute Fst Prods Inc had a market cap of $920.307M Million. Analysts predicted 1 year target price of $22.27 that exceeds the current price of $11.97 for 86.0%. Trailing twelve months P/E ratio is currently 3.09 making it much cheaper stock than the rest of the S&P500 index. Looking at revenue, Resolute Fst Prods Inc generated significant amount of revenue, $3664 million in 2021, surging by 30.9% in comparison to 2020 when it was $2800 million. Net income surged according to the latest fillings, jumping in 2021 by around 2970.0% adding up to total of $307.0 million. In addition, the net income margin, which in 2021 was 8.4%, shows significant improvement set side by side with last few years.

Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products and papers, which are marketed in over 50 countries.

Berkshire Hathaway Inc Del (BRK.B)

Chou Associates’s stake value: $45.1 Million

Percentage of Chou Associates’s 13F Portfolio: 31.2%

Berkshire Hathaway Inc. does business in Management of Companies and Enterprises sector. Current CEO is Warren Buffett.

As of February 16, 2022 Berkshire Hathaway Inc Del had a market cap of $920.307M Million. Analysts predicted 1 year target price of $22.27 that exceeds the current price of $11.97 for 86.0%. Trailing twelve months P/E ratio is currently 3.09 making it much cheaper stock than the rest of the S&P500 index. In addition, the net income margin, which in 2021 was 8.4%, shows significant improvement set side by side with last few years.

Bausch Health Cos Inc (BHC)

Chou Associates’s stake value: $21.1 Million

Percentage of Chou Associates’s 13F Portfolio: 14.6%

Bausch Health Companies Inc does business in Manufacturing sector and has 21600 employees.

As of February 16, 2022 Bausch Health Cos Inc had a market cap of $9.22 Million. Analysts predicted 1 year target price of $41.69 that exceeds the current price of $25.5 for 63.5%. Regarding revenue, Bausch Health Cos Inc generated $8027 million revenue in 2020 which is a decrease of -6.7% compared to 2019 when it was $8601 million. Net income dropped according to the latest fillings, sinking in 2020 by around -68.7% totalling $-560.0 million.

Bausch Health Companies Inc. (NYSE/TSX: BHC) is a global company whose mission is to improve people’s lives with our health care products. We develop, manufacture and market a range of pharmaceutical, medical device and over-the-counter products, primarily in the therapeutic areas of eye health, gastroenterology and dermatology. We are delivering on our commitments as we build an innovative company dedicated to advancing global health.

Mbia Inc (MBI)

Chou Associates’s stake value: $9.5 Million

Percentage of Chou Associates’s 13F Portfolio: 6.6%

MBIA Inc. does business in Direct Property and Casualty Insurance Carriers industry, which is Finance and Insurance sector and has 89 employees. Current CEO is William Fallon.

As of February 16, 2022 Mbia Inc had a market cap of $832.96M Million. Analysts predicted 1 year target price of $13.5 that falls short of the current price which is $15.19 for 1.1%. Regarding revenue, Mbia Inc generated $360 million revenue in 2020 which is a decrease of -7.5% compared to 2019 when it was $389 million. Net income surged according to the latest fillings, jumping in 2020 by around 61.0% adding up to total of $-578.0 million.

MBIA Inc., headquartered in Purchase, New York, is a holding company whose subsidiaries provide financial guarantee insurance for the public and structured finance markets.

Jpmorgan Chase & Co (JPM)

Chou Associates’s stake value: $5.4 Million

Percentage of Chou Associates’s 13F Portfolio: 3.8%

JPMorgan Chase & Co. does business in Commercial Banking industry, which is Finance and Insurance sector and has 255351 employees. Current CEO is James Dimon.

As of February 16, 2022 Jpmorgan Chase & Co had a market cap of $456.645 Million. Analysts predicted 1 year target price of $173.62 that exceeds the current price of $154.51 for 12.4%. Trailing twelve months P/E ratio is currently 10.1 making it a slightly cheaper stock than the rest of the S&P500 index. Looking at revenue, Jpmorgan Chase & Co generated significant amount of revenue, $130905 million in 2021, surging by 28.3% in comparison to 2020 when it was $102063 million. Net income surged according to the latest fillings, jumping in 2021 by around 65.9% adding up to total of $48334.0 million. Besides, profit margin, which levels at 36.9%, shows an improvement, comparing to the previous years.

JPM is a leading global financial services firm with assets of $3.4 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management.

Conclusion

To conclude, here is the list of the top 5 holdings and most recent financial indicators of these positions as of February 16, 2022.

Stock	% of portfolio	Market Cap (USD)	P/E	Net earnings (USDm)	Net earnings y/y	Profit margin
Resolute Fst Prods Inc (RFP)	32.7%	920.307M	3.1	307	2970.0%	8.4%
Berkshire Hathaway Inc Del (BRK.B)	31.2%	920.307M	3.1	307	2970.0%	8.4%
Bausch Health Cos Inc (BHC)	14.6%	9.22B	nan	-560	-68.7%	-7.0%
Mbia Inc (MBI)	6.6%	832.96M	nan	-578	61.0%	-160.6%
Jpmorgan Chase & Co (JPM)	3.8%	456.645B	10.1	48334	65.9%	36.9%

Canadians can find the above stocks on Questrade.

Other investors can use Interactive Brokers or eToro.

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