Renowned value investor Francis Chou recently submitted his 13F report for the second quarter of 2023, which concluded on June 30, 2023. Chou, known for his disciplined and value-oriented investment approach, manages a portfolio comprising 18 stocks with a total value of $79 million.
The top three holdings in Chou's portfolio were BRK.A (52.47%), HTZWW (9.48%), and BHC (7.24%).
Top Three Trades of the Quarter
Chou's top three trades for the quarter included Alibaba Group Holding Ltd (NYSE:BABA), Resolute Forest Products Inc (NYSE:RFP), and Navient Corp (NAS:NAVI).
Alibaba Group Holding Ltd (NYSE:BABA)
Chou initiated a new position in Alibaba, purchasing 3,400 shares. This investment represents a 0.36% weight in the equity portfolio. The shares were traded at an average price of $87.76 during the quarter. As of August 14, 2023, Alibaba's stock price was $93.763, with a market cap of $238.84 billion. The stock has returned -1.14% over the past year. GuruFocus rates Alibaba's financial strength and profitability 7 out of 10 and 9 out of 10, respectively. The company's valuation ratios include a P/E ratio of 20.30, a P/B ratio of 1.69, a PEG ratio of 18.45, a EV-to-Ebitda ratio of 9.36, and a P/S ratio of 1.90.
Resolute Forest Products Inc (NYSE:RFP)
Chou completely sold out his 261,460-share investment in Resolute Forest Products. The shares were traded at an average price of $21.59 during the quarter. As of August 14, 2023, Resolute's stock price was $21.92, with a market cap of $1.68 billion. The stock has returned 53.72% over the past year. GuruFocus rates Resolute's financial strength and profitability 8 out of 10 and 5 out of 10, respectively. The company's valuation ratios include a P/E ratio of 2.26, a P/B ratio of 0.45, a PEG ratio of 0.12, a EV-to-Ebitda ratio of 2.26, and a P/S ratio of 0.25.
Navient Corp (NAS:NAVI)
Chou also initiated a new position in Navient Corp, purchasing 183,338 shares. This investment represents a 4.09% weight in the equity portfolio. The shares were traded at an average price of $17.45 during the quarter. As of August 14, 2023, Navient's stock price was $17.62, with a market cap of $2.15 billion. The stock has returned 8.92% over the past year. GuruFocus rates Navient's financial strength and profitability 2 out of 10 and 6 out of 10, respectively. The company's valuation ratios include a P/E ratio of 6.07, a P/B ratio of 0.73, a PEG ratio of 0.65, and a P/S ratio of 1.73.
In conclusion, Francis Chou (Trades, Portfolio)'s Q2 2023 13F filing reveals his strategic moves in the equity market. His investment decisions, based on his value-oriented philosophy, provide valuable insights for investors seeking to understand market trends and opportunities.