Super Investor #30 in our series is Chris Bloomstran – The Deep-Dive Value Investor. Known for his meticulous research and long-term investment strategy, Bloomstran has built a reputation as one of the most disciplined and analytical value investors in the market today. His investment philosophy, deeply rooted in fundamental analysis, mirrors the principles of Warren Buffett but with his own unique approach.
In this article, we will explore Bloomstran’s background, investment philosophy, notable investments, and key lessons for buy-and-hold investors.
Chris Bloomstran Early Life and Background
Chris Bloomstran is the President and Chief Investment Officer of Semper Augustus Investments Group, a value-focused investment firm. Though he is not as widely known as Warren Buffett or Charlie Munger, his expertise and insights have made him highly respected within value investing circles.
Education and Influences
Bloomstran’s investment philosophy was shaped by classic value investing principles, particularly those of Benjamin Graham and Warren Buffett. However, he also emphasizes deep fundamental research, making his approach even more detailed than many traditional value investors.
His firm, Semper Augustus, is named after a rare and valuable tulip from the Dutch Tulip Mania—possibly as a reminder of the risks of speculative bubbles. This demonstrates his focus on intrinsic value rather than market speculation.
Career Beginnings
Bloomstran began his career in asset management and quickly gained recognition for his deep-dive analysis approach. He founded Semper Augustus to manage long-term capital with a strict focus on value investing. Over time, he has built a track record of identifying undervalued businesses and holding them for the long run, much like Buffett.
Chris Bloomstran’s Investment Philosophy & Strategy
Core Principles
Chris Bloomstran’s investing approach revolves around:
- Intrinsic Value Analysis – Determining the real worth of a company based on its financial health and future earnings potential.
- Margin of Safety – Buying stocks only when they are trading significantly below their intrinsic value.
- Long-Term Mindset – Holding high-quality businesses for years or decades, rather than focusing on short-term market movements.
- Avoiding Speculation – Staying away from fads, speculative stocks, and overvalued businesses.
Stock Selection Criteria
Bloomstran focuses on financially strong companies with:
✔ Consistent earnings growth
✔ High return on invested capital (ROIC)
✔ Strong balance sheets with low debt
✔ Competitive advantages (economic moats)
Unlike some value investors who only look for deeply undervalued stocks, Bloomstran favors quality companies at fair prices—a strategy more aligned with Buffett than pure deep-value investing.
Valuation Techniques
Bloomstran applies several key valuation methods, including:
📌 Discounted Cash Flow (DCF) Analysis – Estimating a company’s future cash flows and discounting them to present value.
📌 Price-to-Book (P/B) Ratio – Comparing a company’s market price to its book value.
📌 Return on Equity (ROE) & ROIC – Measuring how effectively a company uses its capital.
Notable Investments & Track Record of Chris Bloomstran
Bloomstran has built a strong portfolio, focusing on high-quality, long-term investments. Some of his notable holdings include:
1. Berkshire Hathaway (BRK.B)
Bloomstran has been a long-time investor in Berkshire Hathaway, often analyzing its financials in-depth. He sees it as a compounding machine, benefiting from diversified businesses and a strong leadership team.
2. Microsoft (MSFT)
Microsoft aligns with his preference for high-ROIC businesses with strong cash flows. The company’s dominance in software, cloud computing, and AI makes it a compelling long-term investment.
3. Apple (AAPL)
Apple has become a favorite among value investors due to its brand strength, customer loyalty, and high-profit margins.
4. General Dynamics (GD)
Bloomstran has spoken favorably about defense stocks, particularly General Dynamics, due to its stable government contracts and competitive advantages in the aerospace and defense sector.
Performance Overview
While Semper Augustus is a private firm, Bloomstran’s long-term performance has outpaced the market, primarily by focusing on quality businesses at attractive valuations.
Chris Bloomstran Lessons for Individual Investors
Key Takeaways from Bloomstran’s Approach
✔ Invest in high-quality businesses – Focus on companies with strong fundamentals and competitive advantages.
✔ Patience is key – The best investments often require years, not months, to generate significant returns.
✔ Avoid speculative hype – Bloomstran stays away from overhyped stocks and focuses on companies with sustainable earnings.
✔ Stick to your investment principles – Market volatility should not dictate investment decisions.
Common Mistakes to Avoid
❌ Chasing hot stocks – Buying stocks just because they are rising can lead to poor long-term results.
❌ Ignoring business fundamentals – Always analyze a company’s financial health before investing.
❌ Short-term thinking – Frequent trading and reacting to market noise erode returns.
Challenges & Criticism of Chris Bloomstran
Like all investors, Bloomstran has faced challenges and criticisms:
- Some argue that his strict valuation approach causes him to miss out on high-growth opportunities (e.g., Amazon (AMZN) in its early days).
- His long-term focus sometimes leads to short-term underperformance relative to the broader market.
- He remains skeptical of highly speculative investments like cryptocurrencies, which some investors criticize as being too conservative.
Despite this, Bloomstran remains committed to his principles, and his long-term track record supports his strategy.
Chris Bloomstran Legacy & Influence
Chris Bloomstran has made a significant impact on modern value investing, often contributing detailed financial analyses and insights to the investment community.
Key Contributions
- He is widely recognized for his deep research on Berkshire Hathaway.
- His firm, Semper Augustus, continues to be a trusted name among long-term investors.
- He has influenced investors who seek a disciplined, research-driven approach to the stock market.
Chris Bloomstran Quotes & Wisdom
Chris Bloomstran has shared valuable investing insights over the years. Here are a few key quotes:
📌 “A great business bought at a fair price is always better than a fair business bought at a great price.”
📌 “Valuation matters, but quality is what drives long-term compounding.”
📌 “Ignore the noise. Focus on the fundamentals.”
Conclusion
Chris Bloomstran exemplifies deep-dive value investing—a methodical, research-driven approach that focuses on buying and holding high-quality businesses. His strict valuation principles and long-term mindset make him a valuable figure in the world of investing.
For buy-and-hold investors, his focus on fundamentals, patience, and risk management offers a blueprint for long-term success. By applying these principles, everyday investors can build wealth steadily without falling into market speculation traps.
Happy Investing!