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)
NEW TO THE SHOW?
- Check out our We Study Billionaires Starter Packs.
- Browse through all our episodes (complete with transcripts) here.
- Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
- Enjoy exclusive perks from our favorite Apps and Services.
- Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
- Learn how to better start, manage, and grow your business with the best business podcasts.
P.S The Investor’s Podcast Network is excited to launch a subreddit devoted to our fans in discussing financial markets, stock picks, questions for our hosts, and much more! Join our subreddit r/TheInvestorsPodcast today!
- Invest in Bitcoin with confidence on River. It's the most secure way to buy Bitcoin with 100% full reserve custody and zero fees on recurring orders.
- Reach the world’s largest audience with Linkedin, the place to B2B. Plus, enjoy a $100 credit on your next ad campaign!
- Invest in some of the top private, pre-IPO companies in the world with Fundrise.
- Choose Toyota for your next vehicle - SUVs that are known for their reliability and longevity, making them a great investment. Plus, Toyotas now have more advanced technology than ever before, maximizing that investment with a comfortable and connected drive.
- Be confident that you’ll be small businessing at your best with support designed to help you reach your goals. Book an appointment with a TD Small Business Specialist today.
- Start, run, and grow your business without the struggle. Be in control of every sales channel with Shopify. Sign up for a $1 per month trial period today.
- Send, spend, and receive money around the world easily with Wise.
- Experience real language learning for real conversations with Babbel. Get 55% off your Babbel subscription today.
- Learn how Principal Financial can help you find the right benefits and retirement plan for your team today.
- Beat FOMO and move faster than the market with AlphaSense.
- Apply for the Employee Retention Credit easily, no matter how busy you are, with Innovation Refunds.
- Get a customized solution for all of your KPIs in one efficient system with one source of truth. Download NetSuite’s popular KPI Checklist, designed to give you consistently excellent performance for free.
- Support our free podcast by supporting our sponsors.
HELP US OUT!
Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!