TIP625: Berkshire Hathaway w/ Chris Bloomstran

We Study Billionaires - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 21 April 2024

⏱️ 81 minutes

🔗️ Recording | iTunes | RSS

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Summary

Stig has invited legend investor Chris Bloomstran from Semper Augustus to teach us how to value Berkshire Hathaway on today's show. Semper Augustus has an outstanding track record with a compounded annual growth rate of 11.5% on equities since his fund's inception on 2/28/1999, compared to 7.6% for the S&P500. IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 01:37 - The impact of holding cash on your portfolio returns. 24:07 - How to understand the five different components that make up stock market returns 33:14 - How to estimate the expected return of being invested in the S&P500 40:57 - What the intrinsic value of Berkshire Hathaway is 45:51 - How Berkshire Hathaway has allocated capital since 2018 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, Kyle, and the other community members. Stig’s 2023 masterclass with Chris Bloomstran on valuing Berkshire Hathaway | YouTube Video. Stig’s 2022 masterclass with Chris Bloomstran on valuing Berkshire Hathaway | YouTube Video. Stig’s masterclass with Chris Bloomstran on equity valuations | YouTube Video. Chris Bloomstran’s website. Read Chris Bloomstran’s letters to his clients. Buffett resource on CNBC. Check out all the books mentioned and discussed in our podcast episodes here. Enjoy ad-free episodes when you subscribe to our Premium Feed. NEW TO THE SHOW? Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok. Check out our We Study Billionaires Starter Packs. Browse through all our episodes (complete with transcripts) here. Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: River Toyota CI Financial Meyka Fundrise Yahoo! Finance Long Angle iFlex Stretch Studios Public American Express Shopify HELP US OUT! Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! 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.
0:02.0	Every year I look forward to reading two annual letters,
0:06.0	one from Mr. Buffett and the other from Chris Broomstrand.
0:09.0	Chris in his company, Semper Augustus, have an outstanding track record.
0:12.0	Since the fund's exception in 1999, Chris's Kager, an equity has been 11.5% compared to 7.6% for the S&P 500.
0:21.0	In other words, a dollar would have turned into almost $15 with Chris compared to only $8 for the
0:27.1	S&P 500. I can't think of anyone other than Warren Buffett who understands
0:31.3	Berkshire's valuation better than Chris.
0:33.9	And after this episode, I'm sure you will agree with me.
0:37.0	Before we discuss Berkshire Holloway in detail, Chris outlines his expectations for the
0:41.7	S&P 500 returns and the five factors you need to include in your estimations.
0:46.0	This is an episode you don't want to miss out on. Let's do it. network. Since 2014, we studied the financial markets and read the books that
1:05.2	influence self-made billionaires the most. We keep you informed and prepared for
1:09.8	the unexpected. Now for your host, Stick Brodison. Welcome to the
1:23.4	the investors podcast. I'm your host Stig Brodison and I'm here with Chris Broomstrand.
1:28.2	How are you today Chris?
1:29.8	Stig I'm great it's always good to be with you and look forward to this for we've done this for a couple years now so looking forward to it again
1:37.0	You had an amazing track record and perhaps I should take one step back before we get to that and really just acknowledge that you survive for 25 years.
1:46.7	And I don't think we can take that for granted.
1:49.1	And to some it might seem silly to mention, you know, a lot of people might have been 24, 25 years in a job, but it's in as to management, this is so different.
1:58.0	You know, whenever you see the industry from the inside, you hear everyone talking about being anti-f fragile, but then that's really not how a lot of funds are set up.
2:06.4	And so I guess my first question to you here, Crisp would be, as a two-part question.
	...

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