Bogle: Diving Deeper to Learn More from the Legend
As study after study shows that over 80% of large cap Indian mutual funds underperform their benchmark, the intellectual legacy that John Bogle left behind becomes ever more relevant for Indian investors. Beyond the idea of index funds, Bogle identified several deeper truths about our profession – the importance of minimising costs, of being sceptical […]
Smartphones: How They Damage You & How You Can Fight Back
Beyond the negative impact of our smartphones on our attention spans lie other harms. These negatives include anxiety, loneliness and a tendency to take extreme stances. Cal Newport says that by jettisoning all but the most essential digital tools for a month, not only can we learn “deep work”, we can also build more fulfilling […]
The role of P/E multiples in determining investment returns
In the BSE100 universe we find no significant correlation between starting period valuations (i.e. at the beginning of the concerned period) and subsequent long-term returns, no matter which phase of the stock market one looks at – phases of rapid P/E multiple expansion, significant P/E multiple compression, strong earnings growth, or weak earnings growth. Instead, […]
Diwali Special: Learning From Creative People At Work
20 years ago twelve American academics published a collection of studies tracing the intellectual development of giants like Einstein, Darwin, Faraday, Lavoisier, Beethoven and Wordsworth. This intense study of creative people yields rich leanings. At the core of creativity is a heavy duty memory, a multiplicity of projects, stimulating company and a willingness to work […]
The Relationship Between Reforms & Returns in India
Ever since India started liberalising its economy in the early 1980s, the two-year period following General Elections has always generated positive returns with one exception (1999). In fact, the two years following General Elections have accounted for 80% of the returns generated by the Indian stockmarket. Furthermore, Consistent Compounder stocks have more than adequately participated […]
Verghese Kurien is the greatest exponent of the “Infinite Game”
Published on: 8th October, 2019 Simon Sinek’s latest book ‘The Infinite Game’ should be celebrated as a breath of fresh air in the futile discourse around the rightful purpose of capitalism. In that context, one of India’s greatest sons – the late Verghese Kurien, the man who made Amul a powerhouse – deserves to be […]
Marcellus: Excelling Amidst Disruption – India’s Khatri Community
Published on: 25 September, 2019 As tax evading businesses and investors in real estate stare into the abyss, we look at the forceful resurgence of a north Indian business community which was uprooted by Partition. The Khatris’ history is one of remarkable enterprise and outstanding success punctuated by politically motivated loot of their wealth. Today, with […]
Marcellus: Dissecting the Economic Slowdown in India
Published on: 17 September, 2019 Most of the drivers of the current slowdown appear to be transient and related to channel financing/GST credit issues. Understanding why the economy has slowed down at various levels (i.e. consumer, dealer, distributor, manufacturer) is central to investing sensibly in this time of flux. Whilst heavy repo rate cuts are needed, […]
Marcellus: Rising Equity Inflows from Small Town India
Published on: 13 September, 2019 Amidst the gloom & doom of the economic downturn, we continue to see weekly inflows from small town India into Marcellus’ funds. More generally, equity inflows into mutual funds are holding up as are insurance premiums written by even third rung insurers. Our trips to small towns suggest that such […]
Learning from Great Investigative Writers
Published on: 5 September, 2019 Like investors, investigative journalists are paid to uncover undiscovered facts and perspectives. The best investigative journalists have the mental agility to deal with complexity & detail alongside the courage to acknowledge unpleasant realities. We seek to learn from four outstanding investigative writers – Steve Coll, Robert Caro, Ram Guha and […]
Technology, for more than technology’s sake
Published on: 31 August, 2019 Once a new technology rolls over you, if you’re not part of the steamroller, you’re part of the road – Stewart Brand, American Writer. In a few days from now, on September 7th, 2019, the Indian Space Research Organisation (ISRO) is expected to land the Chandrayaan-2 on the Moon, joining […]
Collaboration Across Vast Networks: Lessons from the Marwaris
Published on: 27 August, 2019 The Marwari community serves as a case study of durable and extensive collaboration without the need for a dominant leader to oversee such an endeavour. This sort of community-based collaboration provides richer insights than B-School paradigms into why some teams succeed and others fail. “…read the sub-text and you […]
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