Invest Like the Best with Patrick O'Shaughnessy Chris Bloomstran - An Update on Public Markets - [Invest Like the Best, EP.171]
Apr 30, 2020
Chris Bloomstran, Founder and CIO of Semper Augustus, shares his insights on the public equity market and investment strategies. He discusses the challenges of achieving high returns in the next decade compared to the last. Bloomstran explores the current state of the energy sector and its return potential. He emphasizes the importance of identifying resilient businesses with pricing power and capital efficiency. The conversation also touches on market dynamics influenced by government interventions and the implications of deflation versus inflation.
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Portfolio Adjustments During Pandemic
- Chris Bloomstran discusses Semper Augustus's portfolio adjustments during the pandemic.
- They chose not to liquidate assets to buy levered businesses, instead focusing on durable businesses with strong balance sheets.
Market Disconnect from Economic Reality
- The market's reaction to the pandemic, being down only 12%, is bewildering given the economic shutdown.
- Government intervention and liquidity injections have distorted the market's reflection of the economic reality.
Big Tech Resilience
- Big tech companies like Amazon and Microsoft surprisingly held up well during the crisis.
- Their resilience is attributed to increased demand for their services like cloud computing and e-commerce.