Consistent Compounders

This land isn’t for you or me. It’s for the meat industry.

If like several of us in Marcellus, you are a meat eater, this article from Vox will make for very uncomfortable reading. The article focuses on the US beef industry and just how much land that industry needs (for cattle grazing) and how environmentally and ecologically destructive that cattle grazing is: “Almost half of America’s […]

Oct 29 . 2 MIN READ
Consistent Compounders

How a Maneuver in Puerto Rico Led to a $29 Billion Tax Bill for Microsoft

Microsoft, a stock which we own in our Global Compounders Portfolio, is the subject of this succinct piece on the investigative website PropPublica. The author, Paul Kiel, says “In the largest audit in U.S. history, the IRS rejected Microsoft’s attempts to channel profits to a small factory in Puerto Rico that burned Windows software onto CDs….On […]

Oct 29 . 3 MIN READ
Consistent Compounders

Seconds

Scott Galloway is a professor of marketing at NYU Stern School of Business. He is also known for founding multiple businesses, an active investor, author and most importantly for speaking his mind. In this blog, he highlights the second round effects of the growing use of weight loss drugs. A drug initially developed as a […]

Oct 29 . 4 MIN READ
Consistent Compounders

Superlinear returns

Whilst Marc Andreessen’s essay talks about the benefits of technology at the macro level (economy and society), here’s another thought leader from Silicon valley, Paul Graham talking about superlinear returns at the individual level. He begins by saying inequality is inevitable as it is naturally embedded in the way the world functions. “It’s obviously true […]

Oct 29 . 4 MIN READ
Consistent Compounders

The Techno-Optimist Manifesto

Marc Andreessen, the renowned VC, begins this long article by claiming that we are being lied to about the pernicious effects of technology on our lives. He exhorts us to take a different point of view: “We believe growth is progress – leading to vitality, expansion of life, increasing knowledge, higher well being…There are only three […]

Oct 29 . 5 MIN READ
Consistent Compounders

Outsourcing 2.0: The Global Capability Centre Boom in India

In the early years of the 21st century, India became the IT outsourcing hub for the Western economies. However, over the past decade, as India’s talent pool has widened to sustain multiple functionalities beyond IT services, the West is also outsourcing audit, finance, HR, marketing, analytics, and other functions to India. As the West’s labour shortage […]

Oct 26 . 7 MIN READ
Consistent Compounders

Unleashing the Power of ‘Owner Operators’ to create Wealth for our Clients

Marcellus’ Global Compounders Portfolio (GCP) strategically invests in 25-30 deeply moated global companies listed in developed countries, leveraging their products and services aligned with global economic megatrends, fortified by exceptionally solid moats. These elements contribute to the consistent compounding of free cash flow/earnings in the mid-to-high teens. Here, we spotlight the investment philosophy known as […]

Oct 24 . 11 MIN READ
Consistent Compounders

Midnight Approaches for India’s Retail Lending Boom

India’s savings rate, on a net basis (i.e., savings less borrowings), has touched a 40-year low, as for the first time ever, Indian households are borrowing more than they are saving through bank deposits. This fall in the net savings rate is a by-product of three structural trends: (a) the youthful demography of the nation; (b) the […]

Oct 23 . 15 MIN READ
Consistent Compounders

Gamification of Indian Equities

Indian savers’ parcipatition in equity markets has grown manifold over the past few years as indicated by the rise in demat accounts, now well above 100m. Part of the reason is the structural trend of financialisation of savings in the country away from the historical affinity with real estate and gold as default asset classes. […]

Oct 22 . 3 MIN READ
Consistent Compounders

The mysterious monoliths of Meghalaya

The North-East of India is full of hidden treasures. Ms Paul’s article in the BBC is about one such hidden gem: “Hundreds of standing stones, some 8m tall, stand sentinel in Nartiang, Meghalaya, with their origin shrouded in fantastical folklore.” Nartiang is two hours south of Shillong, the capital of Meghalaya. Ms Paul says, “I found myself […]

Oct 22 . 2 MIN READ
Consistent Compounders

Depaul’s cold coffee has been Delhi’s favourite since 1952. SRK used to hang out here

Those of us who grew up in Delhi can affirm that the world’s best cold coffee is served by Depaul’s in Delhi. As Ms Manmohan explains, “Packed in tiny, customised bottles of 200 ml, Depaul’s beverage lasts just about 4 happy gulps.” Every work trip to Delhi should therefore involve visiting one of the many Depaul’s outlets […]

Oct 22 . 2 MIN READ
Consistent Compounders

How China’s EV Boom Caught Western Car Companies Asleep at the Wheel

Earlier this month, we featured a piece on how China is flooding the world with its cars. To construe this as yet another case of China dumping low quality products sold cheap thanks to the Chinese state’s subsidies would not be out of the ordinary. However, this follow up to that story suggests something different. […]

Oct 22 . 5 MIN READ

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