Consistent Compounders

Why Warren Buffett Sees Investing as a Loser’s Game

At Marcellus, we believe in risk minimisation as a means to help our clients fulfil their financial goals as opposed to return maximisation. See our blog here for more details. Of course, we aren’t the first to believe in the merits of reducing the odds of losing money. The great Charley Ellis wrote the fabulous book “Winning […]

Nov 15 . 2 MIN READ
Consistent Compounders

Lost school time might lower lifetime earnings for lockdown-hit children

Earlier this month, the UK announced a four week lockdown shutting down all including pubs, restaurants, non-essential shops but with schools, colleges and universities allowed to stay open. However, in India, with the festive season in full swing, most markets are swarming with people shopping and pubs and restaurants in some parts of the country […]

Nov 15 . 3 MIN READ
Consistent Compounders

Elon Musk’s Totally Awful, Batshit-Crazy, Completely Bonkers, Most Excellent Year

Elon Musk, according to many in the Silicon Valley is perhaps the only true genius going around, one with a mission to save the world. Indeed many missions – “He’s on a mission to Mars. He’s on a mission to save humanity from its reliance on fossil fuels, which could destroy the planet and kill us […]

Nov 15 . 4 MIN READ
Consistent Compounders

The Top 20 Business Transformations of the Last Decade

Marcellus’ investment philosophy looks for continuity i.e. companies who do one or two things really really well for decades on end. Hence over the years we have always wondered whether it is possible for anyone to successfully identify companies who have completely changed their line of business activity and yet been successful. This HBR gives […]

Nov 15 . 4 MIN READ
Consistent Compounders

The Servant Economy

This long essay is written with the US economy in mind but arguably its relevance to the Indian economy is even greater. The main point of the article is: “In March 2009, Uber was born. Over the next few years, the company became not just a disruptive, controversial transportation company, but a model for dozens of […]

Nov 15 . 4 MIN READ
Consistent Compounders

Spotlighting Alkyl Amines

This month we place the spotlight on Alkyl Amines, a leading manufacturer of aliphatic amines – a key ingredient in the pharma and chemical industries. Over the last ten years (FY10-20), Alkyl has delivered earnings CAGR of 34% with an average pre-tax RoCE of 23% (these numbers look even better for the last 3 and […]

Nov 09 . 13 MIN READ
Consistent Compounders

Coronavirus: Are Indians more immune to Covid-19?

Back in the early days of Covid spreading to Italy and other parts of Europe, there was talk about why Indians shouldn’t worry given our superior immune systems that has fought several diseases arising from the poor hygiene levels in the country. Such talk disappeared as the country rose through the ranks to become one […]

Nov 08 . 4 MIN READ
Consistent Compounders

High quality equities remain the best option for growth

With a second wave of Covid infections threatening to derail what has been an encouraging economic recovery out of the lockdowns, yet markets rallying strongly, it is natural for investors to consider taking risk off the table and sell out of equities. Simon Edlesten, co-manager of the Mid Wynd International Investment Trust and Artemis Global […]

Nov 08 . 3 MIN READ
Consistent Compounders

Inside the Chaotic Unraveling of Jack Ma’s $35 Billion IPO

Another story about Chinese authorities reining in critics. This time, a home-grown hero, Jack Ma, known for his successful e-commerce venture, Alibaba, was on the verge of taking public, his fintech group, Ant Group. Ant was hailed as the world’s largest IPO to date, planning to raise $35bn valuing the company at $315bn with its […]

Nov 08 . 3 MIN READ
Consistent Compounders

The Erasure of Mesut Özil

Most celebrities tend to shy away from taking stances in public about political or social issues lest it jeopardise their thriving careers. There are of course exceptions, notably the great Muhammad Ali, the inspiration behind the name Marcellus. In recent times, Colin Kaepernick, the American football quarterback, whose career pretty much ended when he protested against […]

Nov 08 . 4 MIN READ
Consistent Compounders

An Indian-Made Motorcycle With a Retro Look Is Coming After Harley

In our Little Champions portfolio (which is now shut to fresh inflows as it has reached capacity) we have highlighted that several small Indian companies now have world leading market shares in niche industries (see https://marcellus.in/newsletter/little-champs/spotlighting-garware-technical-fibres/). As you would expect, this trend is going to spread as the Indian economy’s expansion allows more companies to have […]

Nov 08 . 4 MIN READ
Consistent Compounders

Value Investing III: Requiem, Rebirth or Reinvention?

The legendary finance professor begins this long piece by setting up his stall – value investing is dead he says because: “It has become rigid: In the decades since Ben Graham published Security Analysis, value investing has developed rules for investing that have no give to them. Some of these rules reflect value investing history […]

Nov 08 . 4 MIN READ

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