Milk, of All Things, Helped Francis Chou Become One of Canada’s Top Value Investors. by Morningstar
Francis Chou is the co-founder of Chou Associates Management, the parent firm of five mutual funds, including Chou Associates, which has returned an annualized 11.5% over the past 27 years. In 2004, Morningstar Canada named him the manager of the decade. Chou has a history of rebating fees to shareholders in years when the funds underperform.
1. How did you end up becoming a portfolio manager?
I was working at Bell Canada as a technician. I wanted to change that so I was reading a lot, trying to find out what field to go into next. Once I read Security Analysis I knew I wanted to be a portfolio manager.
2. You started your firm with $51,000 from six investors. What was harder, convincing those first six to invest or keeping the clients you have now?
It was difficult to get the six investors on board. I was just a technician with no formal education in investing. The initial capital was a lot of money for them. But once they saw how well we did, it was easy to keep them on board.
3. There is a story of you as a child checking milk jugs for freshness and price. How do situations like that play a part in your outlook on investing now?
See full Interview with Francis Chou by Morningstar