As promised recently (and again twice and again and again – were on a role!) we are updating/cleaning etc the investor resource pages on a regular basis. This week, we’ve cleaned up and updated the Francis Chou Resource Page.
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Below is a partial excerpt from both pages followed by link to each full page, which can also be found under Value investors tab on the top of the page or via link-> https://www.valuewalk.com/francis-chou-bio-quotes-videos-letters-resource-page/
Abacab Fund Sees Mispricing In Options As Black-Scholes Has Become “Inadequate”
Abacab Asset Management's flagship investment fund, the Abacab Fund, had a "very strong" 2020, returning 25.9% net, that's according to a copy of the firm's year-end letter to investors, which ValueWalk has been able to review. Commenting on the investment environment last year, the fund manager noted that, due to the accelerated adoption of many Read More
Brief excerpt below:
Chou’s investment Philosophy can best be summed up in two words “Buy Bargains”. Of course, buying bargains is no simple matter. Chou can best be categorized as a value investor. Some people have called him a bottom fisher; however, he will typically look for stocks that display the following characteristics:
- Above-average to excellent companies as measured by high ROE in excess of 15 percent sustained over 10 years or more.
- Companies run by skillful managers as measured by good controls maintained on receivables, inventory and fixed assets.
- Prudent deployment of capital as measured by a company’s capital expenditures, judicious acquisitions, and timely buybacks of its depressed shares.
- A stock price which is far lower than what a knowledgeable rational buyer would pay.
See full page here.