The JRo Show Interview with Chris Bloomstran
Dec 4, 2023
Investor Chris Bloomstran discusses Semper Augustus investing philosophy, portfolio-level metrics, and why he thinks stocks are attractively valued today. He shares his lessons from studying high price-to-sales stocks and talks about his daily routine, favorite reading materials, and the value of ValueLine. The podcast also delves into Warren Buffett's investment strategy and Chris Bloomstran's future plans and aspirations.
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Opportunistic Value Investing Defined
- Being an opportunistic value investor means seeking change and overlooked opportunities in industries.
- This includes buying structurally advantaged businesses at cheap prices despite temporary challenges.
Portfolio Metrics Highlight Value
- Semper Augustus portfolio shows lower valuations but higher returns on equity than the S&P 500.
- Companies reinvest 82% of profits at around 15.5% ROE, balancing dividends and stock buybacks intelligently.
Understand Valuation Deeply
- Avoid relying on mechanical DCF models; understand the sources of profit and growth deeply.
- Price matters critically; always seek a margin of safety by paying attractive prices relative to business quality.