We Study Billionaires - The Investor’s Podcast Network

RWH032: The Vigilant Investor w/ Chris Bloomstran

15 snips

Sep 17, 2023

Chris Bloomstran, President & Chief Investment Officer of Semper Augustus, shares his insights on achieving long-term investment success. He emphasizes the importance of a 'dual margin of safety'—investing in high-quality businesses at great prices. Bloomstran discusses lessons learned from the dot-com bubble, his skepticism towards popular tech stocks like Tesla and Nvidia, and the dangers of irrational exuberance. He also reflects on the mentorship of Robert Smith and the importance of grounding investment strategies in fundamental analysis.

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ANECDOTE

Robert Smith's Market Timing

Robert Smith, Chris Bloomstran's mentor, successfully navigated the 1929 and 2000 market crashes.
In 1928, he predicted a bubble, sold his family's assets, and invested in safer options.

ANECDOTE

Smith's Benign Neglect

Robert Smith bought GE at a very low price in 1932 and held it for decades.
He adopted a "benign neglect" philosophy, holding onto winners and minimizing taxes.

ANECDOTE

Smith's Wartime Service

During World War II, Smith served in the Navy, witnessing harrowing battles.
This experience likely reinforced his long-term perspective and patience in investing.

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