Newsletter

  • Sep 2019

    Why consistent compounders outperform during market stress?

    Marcellus’ Consistent Compounders portfolio has shown resilience since inception in 2018. This resilience is not uncommon for share prices of great companies. Over the past 2 decades, in stock market crashes,stocks like Asian Paints and HDFC Bank...


    Published on 01 Sep, 2019

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  • Aug 2019

    Page Industries – Why do we continue holding it in our portfolio

    Page’s promoters have used their experience in the Philippines to fortify Page’s moats around: a) product differentiation based on in-house manufacturing in a labour-intensive industry; b) aspirational brand recall using Caucasian models in...


    Published on 01 Aug, 2019

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  • Jul 2019

    Valuing longevity of healthy fundamentals

    Without a deep understanding of a business’ fundamentals, valuation becomes a difficult exercise. A weak franchise trading at 10x P/E multiple appears cheap, when its fair value P/E might actually be 5x. On the other hand, a consistent compounder...


    Published on 02 Jul, 2019

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  • Jun 2019

    Why are we underperforming the Nifty?

    In FY19, our portfolio companies reported 18% revenue growth, 16% earnings growth and 37% ROCE. Whilst this was a healthy performance at an overall level, the external environment facing our companies deteriorated towards the end of FY19 due to...


    Published on 01 Jun, 2019

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  • May 2019

    Risk-reward arbitrage of investing in quality

    The holy grail of investing in stock markets is to buy companies which can sustain a healthy ROCE with growing capital employed, thereby delivering consistent earnings growth over long time periods. In this newsletter, we divide the Nifty50’s...


    Published on 01 May, 2019

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  • Apr 2019

    ‘Doing nothing’ is perhaps the most difficult thing to do

    Buying the Consistent Compounders and holding them for long time periods becomes a difficult exercise asinvestors are bombarded with newsflow and the apprehensions which come with newsflow. As a result,investors tend to do injustice to the size of...


    Published on 01 Apr, 2019

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  • Mar 2019

    Quantifying the futility of timing the market

    Many investors try to time their investments basis the perceived impact of external events on either thebroader stock market or on the share prices of specific firms. Analysing the last 30 years of stock marketdata suggests that even if an investor...


    Published on 01 Mar, 2019

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  • Feb 2019

    Why India is Blessed with Consistent Compounders?

    Marcellus’ Consistent Compounders Philosophy identifies firms with high pricing power that helps sustain a wide gap between returns on capital employed and cost of equity. The portfolio holds such firms for 8-10 years on average and aims to...


    Published on 01 Feb, 2019

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