|CHOU ASSOCIATES MANAGEMENT INC.|
should buy the Chou Funds?
1) They have read the Prospectus
and the annual letters of the manager and feel comfortable with the
manager's investment philosophy and its execution (sufficiently comfortable
that they will not call the Manager if they are worried about the performance
of their investment at any particular time);
2) They are long term oriented;
3) They have modest expectations (any positive single digit annual return will make them happy).
much money should investors invest in the Chou Funds?
1) While the Chou Funds historically
have never suffered large annual losses, they are certainly possible.
Markets are inherently volatile in the short term and can adversely
affect the Chou Funds. Therefore, investors should be comfortable that
their financial position can withstand a significant decline - say,
40% - in the value of their investment;
2) Although the Chou Funds
have done better than the market long term, we typically underperform
the market 40% of the time. Investors should be aware of this statistic
so they will not feel the need to call the manager when the Funds are
underperforming the market; and
3) In general, we recommend that investors do not borrow money to invest in the Chou Funds.
is your expectation of future returns?
is your cardinal principle in investment?
'Margin of Safety' dependent on the price paid?
important is this 'Margin of Safety' concept to the Chou Funds? Can
it absorb mistakes?
you overpay for stocks to keep up with the Joneses?
we switch out of the Chou Associates Fund to the other Chou Funds?
we get bothered by the ugly names in the portfolio?