In this episode, William Green chats with Chris Bloomstran, President & Chief Investment Officer of Semper Augustus. This conversation is so rich that it’s been divided into two episodes. Here, in Part 1, Chris explains how to achieve long-term success by seeking a “dual margin of safety” that comes from owning high-quality businesses at attractive prices. He also warns about the perennial dangers of irrational exuberance, which he now sees in hot stocks like Tesla & Nvidia.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
04:45 - What Chris Bloomstran learned from his brilliant mentor, Robert Smith.
08:17 - How Chris & Robert skillfully sidestepped the dotcom bubble & crash.
10:00 - What lessons Chris drew from an early investment that fell to zero.
35:17 - Why Chris named his investment firm after a crazily overvalued tulip.
44:53 - What Sir John Templeton saw as the best antidote to financial insanity.
55:38 - How to succeed in stocks by seeking a “dual margin of safety.”
56:51 - How his definition of a quality business has evolved.
1:07:01 - Why he’s skeptical about Cathie Wood’s ARK portfolio.
1:09:02 - Why hot tech stocks like Nvidia are likely to disappoint for many years.
1:11:32 - Why he’s wary of hype & “puffery” about Tesla’s glorious future.
1:17:49 - Why he’s trimmed great but pricey holdings like Costco & Nike.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Chris Bloomstran’s firm Semper Augustus Investments Group
- “Extraordinary Popular Delusions & The Madness of Crowds” by Charles Mackay
- “The Rise & Fall of American Growth” by Robert Gordon
- William Green’s book, “Richer, Wiser, Happier” – read the reviews of this book
- Listen to Stig Brodersen’s April 2023 interview with Chris Bloomstran, or watch the video.
- Follow Chris Bloomstran on X (AKA Twitter)
- Follow William Green on X (AKA Twitter)
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