Consistent Compounders

In jail, humanity is bubbling: Stan Swamy

As many Marcellus clients might know, the last three years have seen the National Investigation Agency (NIA) make a series of arrests in different parts of India of people with alleged links to Maoists. These people are, it is alleged, fronts for organisations (NGOs, not-for-profits) which are channelling funds to Communist and Maoist organisations in […]

Nov 22 . 3 MIN READ
Consistent Compounders

Yale may have turned institutional investing on its head with its new diversity edict

Thirty years ago Yale changed the ways university endowments across the Western world invest by highlighting the merits of investing a higher proportion in risk assets whilst seeking to ensure that the risk assets were diversified across public and private equity, developed and emerging markets. This shift catalysed the explosive growth of US private equity […]

Nov 22 . 2 MIN READ
Consistent Compounders

Soumitra Chatterjee lived a full life beyond the screen

Soumitra Chatterjee, a giant of Bengali, Indian and World cinema lost his fight with Covid-19 on 15th November 2020. Some of us celebrated the life of this great actor by watching our favourite Soumitra movies that day. Others participated in processions in Bengal where his favourite poems were read. Still others, we presume, must have played […]

Nov 22 . 3 MIN READ
Consistent Compounders

Indian Financials: A compounding miracle hiding in plain sight

In this newsletter we illustrate why investing in Indian Financial Services stocks is highly rewarding for long term investors not only in terms of absolute returns but also in terms of risk adjusted returns. The data over the past two decades suggests that: (i) the Bank Nifty has delivered far higher absolute returns than the […]

Nov 19 . 9 MIN READ
Consistent Compounders

Pfizer COVID vaccine: promising results – here’s what needs to happen next

News of the positive trial data from Pfizer’s vaccine development added to the euphoria post the US elections bringing cheer to people and markets across the world. Whilst there is no taking away the promising nature of the data, here’s a practical guide to what to expect from here on, according to Anne Moore, a […]

Nov 15 . 4 MIN READ
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

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