Chou Fund 2006 Annual Report:

Francis Chou is an exceptional value investor and I highly recommend everyone reads his annual report below. I would particularly emphasize the following excerpt:

"General comments on the market
We continue to have problems finding compelling bargains in the marketplace. Not only are
the P/E ratios and price-to-book values still high, and dividend yields low, relative to historic valuations, the number of companies that are underpriced is at an all time low. We would
caution all investors that their chances of a large permanent loss of capital are high if they
invest in today’s market leaders at current prices."

He goes on to list several examples of risk being forgotten in today's investment pricing.

Chou Funds 2006 AR