Francis Chou - Chou Associates Portfolio Q2'2025: Top Holdings & Recent Changes
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Francis Chou, the renowned value investor behind Chou Associates, continues to chart his own course in a market dominated by momentum and mega-cap tech. His Q2’2025 portfolio reflects a disciplined, contrarian approach, with $182.8 million deployed across 31 positions. This quarter’s moves highlight Chou’s willingness to make bold bets—such as a dramatic increase in Occidental Petroleum—while trimming or exiting names that no longer meet his strict value criteria.
Portfolio Overview: Focused Value in a Diversified Basket
Portfolio Highlights (Q2’2025): - Market Value: $182.8M - Top 10 Holdings: 85.0% - Portfolio Size: 31 -2 - Average Holding Period: 13 quarters - Turnover: 6.5%
Chou’s portfolio remains highly concentrated, with the top 10 holdings accounting for a striking 85% of assets. This level of focus is a hallmark of Chou’s style: he prefers to allocate significant capital to his highest-conviction ideas, rather than spreading bets thinly across dozens of names. Despite holding 31 positions, the vast majority of capital is committed to a select few, reflecting deep research and patience.
The average holding period of 13 quarters (over three years) underscores Chou’s long-term orientation. Portfolio turnover remains low at 6.5%, consistent with his philosophy of buying undervalued businesses and holding through market cycles. This quarter, the portfolio size decreased by two positions, signaling ongoing refinement and a willingness to trim or exit when the investment thesis changes.
Top Holdings Analysis: Contrarian Bets and Core Convictions
The portfolio is anchored by a massive allocation to BERKSHIRE HATHAWAY INC DEL at 34.3%, unchanged this quarter, reflecting Chou’s enduring faith in Warren Buffett’s conglomerate. Sirius XM Holdings Inc. 8.8% and Alphabet Inc. 8.0% remain core positions, both held steady. Occidental Petroleum Corporation saw a dramatic addition, with Chou increasing his stake by 360.29% to 7.2% of the portfolio—a bold contrarian move into energy.
Other significant positions include SYNCHRONY FINANCIAL (7.9%, unchanged), Apple Inc. (4.9%, unchanged), and ALLY FINL INC (4.8%, unchanged). Stellantis N.V. was sharply reduced by 50.44% but remains a notable holding at 3.8%. CITIGROUP INC rounds out the top ten at 2.7%, with no change in allocation.
Among smaller but active positions, Methanex Corporation was increased by 400%, signaling renewed conviction in this chemicals play, while China Yuchai International Limited was reduced by 68.15%. Chou also exited GROUPON INC entirely, selling 100% of the position.
This blend of high-conviction, long-term holdings and tactical adjustments demonstrates Chou’s willingness to act decisively when value emerges—or disappears.
What the Portfolio Reveals About Current Strategy
- Quality and Value: Chou’s largest positions are in established, cash-generating companies like Berkshire Hathaway and Apple, but he’s unafraid to venture into out-of-favor sectors such as energy and chemicals when valuations are compelling.
- Contrarian Moves: The aggressive addition to Occidental Petroleum and Methanex, alongside the sharp reduction in Stellantis and China Yuchai, reflect a willingness to go against consensus when the risk/reward skews in his favor.
- Sector and Geographic Mix: While the portfolio is U.S.-centric, Chou maintains exposure to international names (e.g., Stellantis, Methanex, China Yuchai), providing diversification and access to global value opportunities.
- Risk Management: The high concentration in top holdings is balanced by a long holding period and low turnover, reducing trading costs and allowing investments time to play out.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| BERKSHIRE HATHAWAY INC DEL | $62.7M | 34.3% | No change |
| Sirius XM Holdings Inc. | $16.1M | 8.8% | No change |
| Alphabet Inc. | $14.6M | 8.0% | No change |
| SYNCHRONY FINANCIAL | $14.4M | 7.9% | No change |
| Occidental Petroleum Corporation | $13.1M | 7.2% | Add 360.29% |
| Apple Inc. | $9,027.5K | 4.9% | No change |
| ALLY FINL INC | $8,784.2K | 4.8% | No change |
| Stellantis N.V. | $6,940.8K | 3.8% | Reduce 50.44% |
| CITIGROUP INC | $4,911.0K | 2.7% | No change |
The table highlights just how concentrated Chou’s portfolio is: over one-third is in Berkshire Hathaway alone, and the top five positions make up more than two-thirds of assets. This approach magnifies both upside and downside, but it’s a deliberate choice rooted in deep conviction and rigorous analysis. The outsized addition to Occidental Petroleum stands out as a high-conviction, high-risk bet, while the sharp reduction in Stellantis signals active risk management.
Investment Lessons from Francis Chou’s Contrarian Value Approach
- Concentration When Conviction Is High: Chou demonstrates that it’s possible to outperform by focusing on a handful of best ideas, provided you truly understand the businesses.
- Long Holding Periods: With an average holding period of 13 quarters, Chou lets his investments compound over time, minimizing trading costs and noise.
- Contrarian Mindset: Willingness to buy when others are fearful (Occidental, Methanex) and sell when value dissipates (Stellantis, Groupon) is a hallmark of his approach.
- Disciplined Risk Management: Even with concentrated bets, Chou actively trims or exits positions when the thesis changes, showing flexibility within a value framework.
- Global Value Hunting: Exposure to international names reflects a willingness to look beyond the U.S. for mispriced assets.
Looking Ahead: What Comes Next?
With a low turnover rate and significant cash still available, Chou is well-positioned to capitalize on future dislocations. The aggressive move into energy suggests he sees value in cyclical sectors, while the steady core in Berkshire, Alphabet, and Apple provides ballast. Investors should watch for further tactical shifts—especially in sectors where sentiment is weakest, as Chou often finds opportunity where others see only risk.
FAQ about Francis Chou’s Portfolio
Q: Why did Francis Chou add so aggressively to Occidental Petroleum this quarter?
Chou increased his stake in Occidental Petroleum by over 360%, likely reflecting a contrarian view on energy valuations and a belief in the company’s long-term cash flow potential.
Q: How concentrated is Chou’s portfolio compared to other value investors?
Chou’s portfolio is extremely concentrated, with 85% in the top 10 holdings and over a third in Berkshire Hathaway alone. This is higher than many peers and reflects deep conviction.
Q: What is Chou’s approach to risk management?
While Chou runs a concentrated book, he manages risk through deep research, long holding periods, and active trimming or exiting of positions when the investment thesis changes.
Q: Which sectors or geographies does Chou favor?
The portfolio is U.S.-centric but includes international names like Stellantis and Methanex, reflecting a global value approach.
Q: How can I track Francis Chou’s portfolio changes?
You can follow Chou’s quarterly 13F filings and get real-time updates on ValueSense. Note that 13F filings have a 45-day reporting lag, so positions may have changed since the last report.
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