Consistent Compounders

Global Compounders Portfolio: Maintaining Discipline amidst Pockets of Excess

Marcellus’ Global Compounders Portfolio (GCP) strategically invests in 25-30 deeply moated global companies aligned with megatrends, fostering a consistent mid to high teens compounding of free cash flow/earnings. In this newsletter, we present our perspective on valuations in the US market given that we do see signs of excess in S&P 500 valuations. However, these […]

Dec 19 . 5 MIN READ
Consistent Compounders

Short read: 25 years after the Matrix: Simulation theory more relevant than ever

A few weeks ago, we featured a piece from The Economist marking the 25th anniversary of the cult movie Fight Club and its increasing relevance in today’s world. This piece cites the 25th anniversary of yet another path breaking movie “ The Matrix” and how in the age of Artificial Intelligence and computing power, its simulation theory is more relevant than ever […]

Dec 16 . 2 MIN READ
Consistent Compounders

Short read: 7 Lessons From 2024 for Investors

Charlie Bilello, an American wealth manager and advisor puts out a very useful weekly blog – The Week in Charts. In this year end piece, he gives us 7 timeless lessons to follow from a personal finance and investing perspective. We share two of them here: First, the futility of predictions basis how woefully wrong all expert investment […]

Dec 16 . 3 MIN READ
Consistent Compounders

Short read: Patna cops resort to lathi-charge against BPSC aspirants protesting ‘normalisation’, server issues

Two weeks ago our blog on the current predicament of the Indian middle class ended up triggering a debate on the floor of the Parliament (see https://marcellus.in/blogs/why-is-the-indian-middle-class-suffering/ ). However, politicians wagging their tongues in Delhi is not going to take the sting out of what is gradually developing into a financial crisis of significant proportions because without […]

Dec 16 . 2 MIN READ
Consistent Compounders

Long read: Manufacturing is a War now

Chris Miller’s fascinating book “Chip War” put semiconductor manufacturing prowess front and centre of global geo-politics. This brilliant blog by Noah Smith puts manufacturing muscle in general in the context of geo-political conflict, primarily between China and the US (and its allies). Over the past few decades, China emerged as a factory to the world. […]

Dec 16 . 4 MIN READ
Consistent Compounders

Long read: Are drug expiration dates meaningless?

If you are like us, this is a question which you have been asking yourself for many years but were too lazy to do the research necessary to answer the question. Thanks to Keren Landman, MD, your quest for getting a satisfactory answer to the question of how seriously to take drug expiry dates is […]

Dec 16 . 4 MIN READ
Consistent Compounders

Long read: ‘Her fans are making pilgrimages’: How Taylor Swift’s Eras Tour became a near-religious experience

The entertainment business had never seen anything like it. No other tour by a rock or pop star has generated so much economic activity in so many different continents or made so much money for the star at the centre of it all. For all of us who have not kept up with Taylor Swift’s […]

Dec 16 . 4 MIN READ
Consistent Compounders

Slowing Growth + Rising Risks = Quality Lenders finally Outperforming

Loan growth for the banking sector has slowed down to 12% YOY from a peak of 16% and slippages for the higher risk retail lending segments are up anywhere between 2x – 6x vs FY24 levels. The increase in NPAs is a result of: (i) oversupply of credit in the post- Covid retail lending frenzy, […]

Dec 14 . 10 MIN READ
Consistent Compounders

Portfolio performance and update on Fundamentals – November 2024

Note: For all strategies except GCP, Performance data shown is net of fixed fees and expenses charged till September 30th, 2024 and is net of annual performance fees (Except for Little Champs Portfolio) charged for client accounts whose account anniversary/performance calculation date falls upto the last date of this performance period. Since, for Little Champs Portfolio, […]

Dec 12 . 14 MIN READ
Consistent Compounders

The Brave New World of Middle-Class ‘Gigs’ in India

It seems clear that India has a couple of painful years ahead of it as it grapples with AI reducing the demand for labour in sectors which lie at the heart of middle-class income generation e.g., Financial Services, IT Services, Media and Manufacturing. However, it is also evident that technology is creating new jobs in […]

Dec 11 . 13 MIN READ
Consistent Compounders

Short read: ‘Brain rot’: Oxford word of the year 2024 reflects ‘trivial’ use of social media

A couple of weeks ago, we featured a piece in The Atlantic which talked about how students even in elite colleges are struggling to read books. Nothing wrong in itself as today’s digital age presents plenty of alternatives to books to gain knowledge and insight. But the point being the struggle with focus required for […]

Dec 09 . 2 MIN READ
Consistent Compounders

Short read: The Pursuit of Longevity

The science of ageing has progressed significantly over the past few decades. Not just delaying death but also improving the quality of life in old age. But like much else, there is a lot of misinformation about the science of ageing as well. What better than a book by a Nobel laureate to clear the […]

Dec 09 . 3 MIN READ

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