Invest Like the Best with Patrick O'Shaughnessy Chris Bloomstran – What Makes a Quality Company - [Invest Like the Best, EP.141]
Aug 6, 2019
Chris Bloomstran, president and CIO of Semper Augustus Investments Group, shares his expertise on what defines a quality business. He dives into the importance of unique business models and customer relationships, with companies like Richemont and Disney illustrating current market trends. Bloomstran also reflects on his investment missteps and the key role of management quality in successful companies. His insights into growth versus value investing reveal the subtle nuances investors must consider in today’s dynamic market.
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Episode notes
Selling Ross Stores
- Chris Bloomstran's biggest investment mistake was selling Ross Stores.
- He sold it for price, thinking it was expensive, but missed out on massive gains as it continued to grow.
Quality Investing
- Bloomstran defines quality investing as buying outstanding businesses run by outstanding managers.
- He emphasizes the importance of management quality and shared values.
Proxy Statement Analysis
- Analyze proxy statements over long periods (e.g., 15 years) to understand management incentives and how they change.
- Look for companies that prioritize return on capital metrics in their compensation structures.