Consistent Compounders

Expect the Roaring ’10s for Stocks to Repeat in the ’20s

This piece uses a very useful framework created by John Bogle for his classic book published 30-years ago (titled “Bogle on Mutual Funds”). In that book, Bogle shows that you can decompose the investment returns generated by the stockmarket into 3 segments): dividends, earnings growth and growth in P/E. Nir Kaissar uses this framework to […]

Dec 22 . 2 MIN READ
Consistent Compounders

The importance of accounting quality

45% of the stocks which were in the BSE500 ten years ago have exited the index since. The primary driver of these exits is shoddy corporate governance and poor capital allocation (the two are linked). In contrast, the number of companies which have significantly enriched their shareholders are a handful. Inspired by Howard Schilit’s legendary […]

Dec 21 . 7 MIN READ
Consistent Compounders

Parallels between investing and software development

At first glance, software development and investing seem to be poles apart. But we find a common and interesting thread in the process that investment managers and software developers follow. The first public release of the Android operating system (OS) for mobile phones was in 2008. The most recent version is its sixteenth, meaning an […]

Dec 18 . 5 MIN READ
Consistent Compounders

How to Give People Advice They’ll Be Delighted to Take

Irrespective of our credentials, all of us tend to get approached for advice every now and then, from friends, family and co-workers. As advice seekers, we often find ourselves having a go-to person for advice. Why do we pick certain people over others? What do these people do better when it comes to giving advice? […]

Dec 15 . 2 MIN READ
Consistent Compounders

Beware Footnote Mischief

At Marcellus, a big part of our job is forensic analysis of Indian annual reports. Hence we are always interested to hear about advances in this field elsewhere in the world. In this article, Julie Segal begins by saying that “Harvard Business School and MIT’s Sloan School of Management claim to have found the first empirical […]

Dec 15 . 2 MIN READ
Consistent Compounders

Ray Dalio Is More Famous Than Ever and Delivering Subpar Returns

As a fund manager, Ray Dalio – the founder of Bridgewater Associates – has attained celebrity status and is arguably next only to Warren Buffett in the celebrity stakes. His book, “Principles”, “his 600-page manifesto for success that has sold 2.2 million copies since its publication in September 2017. The tome, an unlikely crossover hit that’s […]

Dec 15 . 2 MIN READ
Consistent Compounders

The extraordinary story of the only B Corp in Afghanistan

“People don’t buy what you do, they buy WHY you do it” says Simon Sinek in his hugely popular TedTalk – “Start with Why?” Companies across the world are increasingly attaching a purpose to their business. Indeed, there is an official certification for companies that go beyond profit motive – B Corp is a private certification issued by B […]

Dec 15 . 3 MIN READ
Consistent Compounders

How the Loss of the Landline Is Changing Family Life

The mobile phone will likely go down in history as the technology which had the biggest impact on people’s lives and progressively so. Whilst its ability to connect people far away is often seen as the gamechanger for human civilisation, this article highlights one aspect where the smartphone has actually disconnected people. The piece in […]

Dec 15 . 3 MIN READ
Consistent Compounders

The gospel of wealth according to Marc Benioff

In the run upto the next US presidential elections, it is inevitable that the topic of taxing the rich will be front and centre of the debate with candidates such as Elizabeth Warren actually putting out a clear plan – The Ultra-millionnaire tax. The topic touches upon the role of the wealthy and big corporates in […]

Dec 15 . 5 MIN READ
Consistent Compounders

Celebrating Marcellus with Two Creative Giants

As we complete a year of managing money in India, we celebrate two towering legends of the Indian music industry. Not only did RD Burman and AR Rahman change the way movie music is made in India, there are striking parallels in their careers. Both men were professional musicians by their mid-teens. Both turned away […]

Dec 10 . 11 MIN READ
Consistent Compounders

When is corruption good for growth?

Corruption is often attributed as one of the key impediments to development and growth. However, Shrabani Saha and Kunal Sen of the United Nations University in a working paper (see here) show that there is indeed a positive correlation between corruption and growth drawing from the experiences of East Asian economies who demonstrated long periods of […]

Dec 08 . 2 MIN READ
Consistent Compounders

All-Time Highs Are Both Scary & Normal

A common question from clients these days is “How comfortable are you investing now given the markets (and your portfolio stocks) are at all-time highs?”. Our simple answer is that our portfolio earnings are also at all-time highs. Indeed, for the fiscal year to date, our portfolio is up a little over 20% whilst its weighted […]

Dec 08 . 2 MIN READ

For more content on our strategy, visit the archives GO TO ARCHIVES

2024 © | All rights reserved.

Privacy Policy | Terms and Conditions