The Chou Associates Fund was started on Nov. 28, 1986 and since its inception it has netted an 11.2% return.
Chou Associates has multiple funds including The Chou RRSP Fund (Trades, Portfolio), Chou Asia Fund, Chou Europe Fund, Chou Bond Fund, and the Associates fund has been the most successful since their inceptions, according to the Chou Associates website (http://choufunds.com/comp_annual.html).
Chou Associates added 316,591 shares – a 126.14% increase – to its stake in Ascent Capital Group (ASCMA, Financial).
Ascent Capital Group engages in providing security alarm monitoring services like monitoring signals arising from burglaries, fires, medical alerts and other events through security systems. Ascent Capital Group has subscribers in 50 states in the United States, Puerto Rico and Canada.
Ascent Capital Group has a market cap of $252.35 million, a forward P/E ratio of 29.76, a P/S ratio of 0.48 and a quick ratio of 1.67.
Chou Associates added 4,281,218 shares –Â in a 4.90% increase – to its stake in Resolute Forest Products Inc. (RFP, Financial)
Resolute Forest Products was formed on Jan. 25, 2007 in Delaware. The company owns and operates pulp and paper mills and wood products facilities in the United States, Canada and South Korea and power generation assets in Canada. Its products include newsprint, specialty papers, market pulp and wood products.
Resolute Forest Products has a market cap of $687.65 million, a forward P/E ratio of 9.96, a P/S ratio of 0.19 and a quick ratio of 1.78.
One crucial warning sign about this company is the fact that its per share revenue has been on the decline for the past five years. With more companies becoming more environmentally conscientious and with the declining use of paper in today's electronic information age, this could be a big disadvantage for the company in the future.
Chou Associates raised its stake in China Yuchai International Ltd. (CYD, Financial) by 73,364 shares, a 187.29% increase in its holding.
China Yuchai International was incorporated under the laws of Bermuda on April 29, 1993. The company manufactures diesel engines in China and produces and provides covering light duty, medium duty to heavy duty diesel engines, engine parts and components, diesel-powered generators, industrial engines, marine engines and natural gas engines to meet the needs across different sectors.
China Yuchai International has a major warning sign attached to it. Its revenues have been on the decline for more than five consecutive years; the average decline per year is 1.2%.
Below is a Peter Lynch chart for China Yuchai.
Francis Chou (Trades, Portfolio) made these three additions; however, Resolute Forest Products and China Yuchai international are high variance and volatile because, as Warren Buffett (Trades, Portfolio) says, you want to buy companies that will last forever, and with the way the world is changing toward green energy, it does not seem as if these companies will last for the next century. Evidence of this is starting to show with their declines in revenues over the previous five years.
Cheers to your investment success.
