By
Borsgade
Christopher Bloomstran, CIO of Semper Augustus Investment Group, and one of the investors who knows Berkshire Hathaway and Warren Buffett best, has just published his annual letter to shareholders.
Regardless of the title (letter to clients), there is usually more about a book than about a letter. Despite the length, there are many exciting topics, and where Christopher dives nets in:
Several years ago, in an exchange of letters with Warren Buffett, I mentioned having calculated a startling truth that Berkshire Hathaway could lose 99.3% of its market value and still have outperformed the S&P 500 from when he took over in 1964 to that point. Warren responded, “I’m sure Ben (Graham) would be proud and call it a margin of safety, but let’s not put it to the test.” Later in the same year, in a conversation with Charlie Munger at a Wesco meeting, I mentioned the same remarkable statistic. Charlie’s instant reply, following a glare into my soul, and then a harrumph, “Well of course, Chris, that’s just simple compound interest.”
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