RWH032: The Vigilant Investor w/ Chris Bloomstran

The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 17 September 2023

⏱️ 87 minutes

🔗️ Recording | iTunes | RSS

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Summary

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 Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members. 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) SPONSORS Support our free podcast by supporting our sponsors: River Toyota Range Rover Sun Life SimpleMining The Bitcoin Way Onramp Briggs & Riley Public Shopify Meyka Fundrise AT&T iFlex Stretch Studios Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

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0:00.0	You're listening to TIP.
0:03.0	Hi there.
0:04.0	I'm really excited about today's episode of the podcast.
0:06.7	Our guest is Chris Blumstrom, who's a superb investor.
0:11.0	He's the president and chief investment officer of a firm in St. Louis called Semper
0:15.8	or Gustas.
0:17.5	And this conversation is really so rich and so packed with practical lessons about investing
0:22.6	and business and life that I didn't want to cut it short.
0:25.9	So for the second time in the history of the podcast, I've turned this interview into
0:31.3	two episodes.
0:32.8	In part one which you're about to hear, Chris shares what he's learned over the last
0:37.5	three decades about how to navigate the madness of financial markets so that you can survive
0:44.5	and thrive through thick and thin.
0:47.8	So we talk about how Chris and his mentor are brilliant but unknown investor who had previously
0:53.6	survived the crash of 1929 managed to sidestep the dot com bubble that burst back in 2001.
1:01.9	We talk about how to protect yourself in these crazy outbreaks of irrational exuberance
1:06.8	which go back at least as far as 17th century Holland where investors were prepared to
1:12.1	pay almost anything to own the rarest tulips.
1:16.1	And it's not a coincidence as you'll hear that Chris actually named his investment firm
1:20.1	after the most coveted of all tulips which was called the Semper Augustus.
1:25.4	And that's really an ironic reminder that investors can be dangerously irrational.
1:31.1	Some of the lessons in this conversation are timeless and foundational but Chris also
	...

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