Review of Neerja Chowdhury’s book ‘How Prime Ministers Decide’
Award winning journalist & political commentator Neerja Chowdhury has written an outstanding book packed with information, revealing anecdotes and penetrating analysis of India’s PM’s have made critical decisions which shaped their political careers and the country at large. The book is written with pace & verve (Mr Srinivasa Raghavan says that the style of the […]
Invest in Dominant B2B Firms in Highly Profitable Industries
The industry in which B2B firms operate can have an outsized impact on their compounding potential. Over FY14-23, some sectors like IT, Light Industrials and Chemicals have generated twice as much RoCE and share price returns as compared to sectors like Energy and Metals & Mining (which struggle to return even cost of capital). This […]
A moment that changed me: my teacher went totally off script – and opened a door for my life to flow through
Following up on Graham Weaver’s lecture to the Stanford MBA students, here’s another instance of wisdom imparted by a teacher to a class of young students. Colin Walsh, nominated for the Waterstones Debut Fiction Prize for his novel Kala, talks about how his high school teacher taught him the importance of curiosity and humility. “…he […]
How To Live An Asymmetric Life
Graham Weaver is a private equity investor and this is a summary of his lecture to the Stanford Graduate School Business. He begins by talking about how investing is all about finding asymmetric opportunities. “When I started my investing career, I focused almost exclusively on what I believed were the two fundamental rules of investing: […]
Market Scout – On-the-Ground Research In India and China
One of our clients forwarded us this newsletter authored by our friends in Salt Lake City, Wasatch Advisors. The newsletter describes the Wasatch portfolio managers’ observations from travelling around India and China over the past couple of months. Whilst their bullish observations on India (eg. opportunities in Specialty Chemicals & in manufacturing due to China+1, […]
Birth, Death and Wealth Creation
Michael Mauboussin and Dan Callahan have come up with another brilliant paper building on the now famous research by Hendrik Bessembinder which showed that a handful of companies i.e, 2% of all listed companies were responsible for more than 90% of wealth creation. The authors take this concept and link to longevity of companies (a […]
The Psychopathic Path to Success
While psychopathic tendencies are usually associated with villains like Hannibal Lecter, this article says that psychologists are increasingly reaching a new, more positive conclusion regarding psychopaths: “Some psychologists argue that the focus on violent and criminal psychopathic behaviour has marginalised the study of what they call “successful psychopaths” – people who have psychopathic tendencies but […]
From Choimoola to Dhaka
The southern Indian states are now 4-5x richer than their northern Indian counterparts and each year this gap in widening. [A decade ago, when we wrote on this topic for the first time, the multiple was 2x.] A fortnight ago, Minnu Mani became the first tribal woman from Kerala to represent India in international cricket. […]
The Democratization of Opportunity in India’s Boardrooms
For the first time in India’s history, a majority of the promoters and executive directors of Nifty50 companies are NEITHER foreign educated NOR educated at the elite IITs & IIMs. Instead, majority of the people running Nifty50 companies now have ‘normal’ Indian degrees. Symptomatic of this transformation is HDFC Bank, India’s second largest listed company […]
Choosing a Discount Rate
We have written about the pitfalls of using price to earnings (PE) multiples as a valuation tool in our blogs and newsletters. The alternative we use, the Discounted Cash Flow (DCF) model isn’t devoid of shortcomings either – such as the futility in forecasting inherently hard-to-predict long term cashflows or the sensitivity to a somewhat […]
Will India be the breakout emerging market this decade?
“India is known as the market that has confounded optimists and pessimists alike” is the first sentence of this article. It best captures global investors’ view of the Indian economy and markets alike. Fund managers at Capital Group, one of the most admired active investment management companies in the world, have attempted to answer if the […]
China’s data ‘black box’ puzzles economists
As China’s economy slows down, its macroeconomic data is increasingly hard to make sense. As the FT explains, “The country’s gross domestic product had grown 0.8 per cent in quarterly terms and 6.3 per cent year on year in the second quarter. The combined quarter-on-quarter growth over the previous four quarters, however, implied growth of 6.8 […]
For more content on our strategy, visit the archives GO TO ARCHIVES