In the field of investment, St. Louis has nurtured many excellent investment companies over the years. The year 2020 saw leading value investing firm Semper Augustus share insights on opportunities, market outlook and intrinsic value in their annual letter to clients. With astute analysis of macroeconomics and bottom-up research, Semper Augustus is well-positioned to navigate market volatility. Their concentration on high quality businesses trading at discount coupled with margin of safety makes Semper Augustus one of the top investment companies in St. Louis in 2020.
Semper Augustus foresees inflation risks in the future
In their 2020 client letter, the investment experts at Semper Augustus warned of the inflation risks stemming from massive stimulus measures. They predicted that the economy is transitioning from deflation to eventual hyperinflation, comparing the current valuations to historical peaks. With prudent capital allocation and value investing principles, Semper Augustus aims to own the right assets at the right time to weather the coming challenges.
Semper Augustus utilizes in-depth fundamental analysis
The investment process at Semper Augustus focuses on bottom-up, fundamental analysis of individual businesses. Their research goes deep into the financial statements and operations of a company to ascertain quality and value. This rigorous analytical approach allows them to purchase stakes in strong businesses at a discount to intrinsic worth. Continuous fundamental monitoring then helps realize the upside potential.
Concentrated portfolio trades at discount to value
Semper Augustus runs a concentrated portfolio of high conviction picks. Their selective approach focuses only on the most compelling opportunities after thorough research. As a result, the portfolio holds quality businesses trading at wide discounts to conservative estimates of intrinsic value. This margin of safety provides downside protection while the concentration allows full exposure to the upside.
With its proven value investing philosophy, bottom-up research, concentrated approach and inflationary outlook, Semper Augustus emerged as one of the top investment companies in St. Louis in 2020.