Francis Chou (Trades, Portfolio), supervisor of Chou Associates, disclosed this week that he curbed his holdings in DaVita Inc. (NYSE:DVA), Bausch Well being Corporations Inc. (NYSE:BHC), JPMorgan Chase & Co. (NYSE:JPM) and Bank of America Corp. (NYSE:BAC) throughout the first quarter.
Chou, who met Fairfax Monetary Holdings Ltd. (TSX:FFH) CEO Prem Watsa (Trades, Portfolio) within the 1980s, stated that a few of his key investing ideas embrace shopping for bargains and considering independently. Chou’s investing course of emphasizes the evaluation of an organization’s stability sheet, cash circulation traits, profitability, business place, particular strengths, future development potential and administration capacity.
As of the quarter-end, Chou’s $100 million fairness portfolio incorporates 19 positions with no new holdings. The highest three sectors when it comes to weight are monetary companies, well being care and primary supplies, representing 60.93%, 27.54% and 6.46% of the fairness portfolio.
Chou offered 68,000 shares of DaVita, decreasing the place 67.50% and the fairness portfolio 2.97%. Shares averaged $78.69 throughout the first quarter.
The Denver-based firm supplies dialysis companies within the U.S. GuruFocus ranks DaVita’s profitability 9 out of 10 on a number of optimistic investing indicators, which embrace a excessive Piotroski F-score of seven, constant income development and an working margin that’s outperforming over 83% of worldwide rivals.
Berkshire owns 38,095,570 shares of DaVita as of March quarter-end, down roughly 1.22% from the prior quarter holding.
Bausch Well being
Chou offered 60,000 shares of Bausch Well being. The transaction trimmed the place simply 3.71% regardless of decreasing the fairness portfolio 1.04%. Shares averaged $24.35 throughout the first quarter.
The Laval, Quebec-based firm manufactures merchandise for the dermatology, gastrointestinal and ophthalmology markets. GuruFocus ranks the corporate’s monetary energy 2 out of 10 on a number of warning indicators, which embrace curiosity protection and debt ratios underperforming over 95% of worldwide rivals.
Chou offered 10,000 shares of JPMorgan Chase, decreasing the place 22.59% and the fairness portfolio 0.81%. Shares averaged $122.27 throughout the first quarter.
The New York-based bank operates 4 monetary service companies: client and group banking, company and funding banking, business banking and asset and wealth administration. GuruFocus ranks the corporate’s monetary energy Three out of 10 on the again of equity-to-asset and debt-to-equity ratios underperforming over 70% of worldwide rivals, warning indicators of excessive leverage.
Berkshire owns 57,714,433 shares of JPMorgan Chase as of the March quarter, down 3.03% from the prior quarter holding.
Bank of America
Chou offered 10,000 shares of Bank of America, decreasing the place 35.24% and the fairness portfolio 0.20%. Shares averaged $30.21 throughout the first quarter.
The Charlotte, North Carolina-based bank operates 4 enterprise segments: client banking, world wealth and funding administration, world banking and world markets. In accordance with GuruFocus, Bank of America’s monetary energy ranks Three out of 10 on the heels of accelerating long-term debt over the previous three years, contributing to debt ratios that underperform over 67% of worldwide rivals. Regardless of this, Bank of America’s equity-to-asset ratio of 0.10 outperforms 51% of worldwide banks.
Berkshire owns 925,008,600 shares of Bank of America as of the March quarter. With a weight of 11.19%, the bank characterize’s Berkshire’s second-largest holding.
Disclosure: No positions.
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Concerning the creator:James LiI am an editorial researcher at GuruFocus. I’ve a Grasp’s in Finance from SMU, and I get pleasure from writing experiences on monetary developments and investor portfolios. Comply with me on Twitter at @JamesLiGuru! Go to James Li’s Web site