Semper Augustus (Christopher Bloomstran) (cik: 0001115373)

Semper Augustus focuses on company’s free cash flows as well as a realistic estimate of the firm’s cost of capital. This margin of safety is crucial to managing risk in the portfolio. The company defines risk as permanent loss of capital, not as volatility around some mean. Over time, it believes its risk-averse investment portfolios should realize long-term compound annual rates of return higher than those generally available from the average investor’s general experience in securities. Its portfolios generally contain fewer than 30 holdings, and are often highly concentrated in a small handful of business with high business quality and a significant discount to appraised value.