Chou Associates Q4 2025 13F Holdings and Activity Report

I. Institutional Overview

To understand the psychological portrait of Chou Associates in Q4 2025, one must first look at the scale and the structure of the AUM. At approximately $201.5 million, the fund occupies a "sweet spot" in the investment world. It is large enough to take meaningful positions in global giants like BRK.A (Berkshire Hathaway Inc.) and GOOG (Alphabet Inc.) , yet small enough to remain nimble, allowing the manager to exit or enter positions without significantly moving the market price—a luxury not afforded to multi-billion dollar behemoths. The fact that the number of stocks remains low at 27 suggests that Chou is not interested in "closet indexing" or diversifying away his best ideas. Instead, he follows the Munger-esque philosophy of "waiting for the fat pitch" and swinging hard when it arrives.

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II. Sector Allocation Analysis

Within this 56.71%, we see a blend of "safe-haven" financials and "high-yield" credit providers. The presence of BRK.A (which, while a conglomerate, is classified under financials due to its massive insurance operations) provides the stability. Meanwhile, positions in SYF (Synchrony Financial) , ALLY (Ally Financial) , and WFC (Wells Fargo) suggest that Chou is betting on the resilience of the American consumer and the widening of net interest margins. This concentration indicates a belief that the financial sector remains undervalued relative to its earnings power, or perhaps a judgment that in an uncertain macro environment, companies that "deal in money" are the safest place to be.

The Consumer Discretionary segment is dominated by STLA (Stellantis) and BABA (Alibaba) . These are classic "contrarian value" plays. Stellantis, with its massive portfolio of brands (Jeep, Ram, Peugeot), often trades at low single-digit P/E ratios, reflecting market skepticism about the transition to EVs. Alibaba represents a bet on the recovery of global e-commerce and cloud computing at a "distressed" valuation. By allocating 13.35% here, Chou is signaling that he is willing to wait for the market to recognize the "sum-of-the-parts" value in these unloved giants.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

III. Top 10 Holdings Deep Dive

Berkshire Hathaway is not just a holding for Francis Chou; it is the philosophical north star of the portfolio. Held for over 10 years, this position remains unchanged in terms of share count (86 shares), yet its weight has increased to 32.21%. This is a "Conviction Holding" of the highest order.

Portfolio Construction Logic : The Top 10 is built on the principle of "Asymmetric Risk-Reward." Chou buys companies when they are unloved (Stellantis, Alibaba, Synchrony) and holds them until they become "fairly valued" or "slightly overvalued," at which point he trims (Alphabet, Moody's). The portfolio is heavily weighted toward Large-Cap Value , with a significant tilt toward companies with strong balance sheets and the ability to return capital to shareholders through buybacks and dividends.

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IV. Major Buys/Additions

Francis Chou, like his mentors Buffett and Munger, believes that you don't get paid for "activity"; you get paid for being "right." In Q4 2025, it is highly probable that Chou surveyed the market and found nothing that met his stringent criteria for a "Margin of Safety." With the S&P 500 trading at elevated multiples and the "Magnificent Seven" dominating the narrative, the "unloved" corners of the market where Chou usually hunts may have become either "fairly priced" or "not distressed enough" to warrant new capital.

The lack of buying also reveals what Chou is avoiding. He did not chase the AI rally by adding to Technology. He did not seek safety in high-priced Consumer Staples. He did not bet on a "soft landing" by adding more cyclical Industrials. This "No-Fly Zone" indicates a belief that the current market leaders are overvalued and the current laggards haven't quite hit the "blood in the streets" level of pricing that a true contrarian requires.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

V. Major Sells and Exits

The most aggressive percentage reduction was in Moody's Corporation . Selling nearly 75% of the position is a clear signal that Chou believes the stock has reached "Full Valuation." Moody's is a "toll-bridge" business with an incredible moat, but it often trades at very high multiples. For a value manager, there comes a point where even a great business is a "bad stock" due to its price. Chou is exiting the "valuation stratosphere" here.

The reduction in Sirius XM and the exit from Credit Acceptance (a subprime auto lender) may signal a concern about the lower-end consumer . If Chou believes that credit stress is beginning to mount for subprime borrowers or that discretionary spending on satellite radio is at risk, these sales are a proactive way to insulate the portfolio from a potential consumer downturn.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

VI. Investment Insights and Risk Warnings

The overarching theme for Chou Associates in Q4 2025 is "The Discipline of the Harvest." In a market environment that has been characterized by "FOMO" (Fear Of Missing Out) and aggressive chasing of AI-related growth, Francis Chou has chosen a path of extreme restraint.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

Sources and limitations

This report uses public U.S. Securities and Exchange Commission Form 13F disclosures and structured data maintained by 13F Hub. A 13F filing is a quarter-end snapshot of reportable long positions, is normally published with a delay, and does not disclose every short position, cash balance, bond, derivative, or non-U.S. asset.

Narrative content is prepared from the same-period SEC disclosure and 13F Hub structured data, then checked before publication. This material is for research and education, not personalized investment advice.