How Cold War II Will Impact Your Wealth
Given the likelihood of elevated inflation as Cold War II commences, the worst possible thing that investors can do is seek the safety of fixed deposits, Government bonds, corporate bonds and other fixed income investments – inflation will radically erode the real value of such investments. The most sensible method to deal with a scenario […]
Busting Popular Macroeconomic Myths
Fact#1: Economic recoveries tend to be accompanied by elevated rates of inflation, rising interest and RISING stock markets. Fact#2: Furthermore, during periods of higher than usual inflation, high quality stocks tend to strongly OUTPERFORM the broader benchmarks. These two points are supported not just by theory but also by several decades of economic and financial […]
Asian Paints vs Sherwin Williams: Different Paths to Dominance
The moats created by dominant franchises in India differ from their counterparts in the West due to differences in the underlying structure of the respective markets. We use Asian Paints and Sherwin Williams as examples of how two equally dominant companies in the same industry have followed completely different paths to dominance. The case study […]
The Best Newsletters of 2021
The end of a year is always an opportunity to measure how much we have grown as individuals or as organisations. At Marcellus, one of the more important metrics of progress we measure is on the learning front. Every year, or for that matter, every day, we hope to learn something new or learn something […]
The Best of 2021
The year 2021 was turbulent, to say the least. While it began with hopes of leaving behind Covid-19, by the middle of the year we were dealing with the devastating second wave in India. There will be a rare person who did not lose someone or who did not know someone who had lost a […]
Three Essential Reads from our Investee Companies
“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency” – Bill Gates (Capgemini, 2015). Over the past decade, the way successful companies are managed has changed. The most […]
Why India Beats China Hollow on Consistent Compounding?
Amongst Emerging Markets, India and China have produced the greatest number of Consistent Compounders (i.e., companies which have delivered 10% YoY revenue growth and 10% RoCE consistently over a decade). However, not only does India produce more Consistent Compounders than China, Indian Consistent Compounders have also delivered more than twice as much shareholder return as […]
Is ESG investing in India practically feasible?
ESG assets under management in India have increased by four times in the last two years to touch Rs11,800 crore. Although a noble mission, practicing it is not easy. There are unique challenges in assessing compliance of the same by companies as well as in balancing the conflicts that routinely arise amongst the three aspects […]
How Can the Stock market be Taken to the Masses?
The two most of common ways of accessing the stock market – mutual funds and brokerage accounts – are relatively expensive for ordinary Indians. If the Indian stock market is to be taken to the masses, the highly successful National Pension Scheme construct looks to be the most likely vehicle which can serve this purpose. […]
Credit Growth And Per Capita Income – An Unforeseen Relationship
Globally, the relationship between overall credit growth and GDP growth is no longer as strong as it used to be three decades ago. However, in India’s case, the relationship, even though weaker as compared to the 1990s, is still robust. Moreover, as a country gets richer, retail credit starts accounting for an ever-larger share of […]
Why Read ‘Diamonds in the Dust: Consistent Compounding for Extraordinary Wealth Creation’
“In my whole life, I have known no wise people (over a broad subject matter area) who didn’t read all the time—none. Zero. You’d be amazed at how much Warren reads—and how much I read. My children laugh at me. They think I’m a book with a couple of legs sticking out.”– Charlie Munger (source: https://fs.blog/2014/06/charlie-munger-recommended-books/) There […]
Celebrating Three Years of Marcellus with Three Outstanding Books
“I know where I am going and I know the truth and I don’t have to be what you want me to be. I am free to be what I want.”–Muhammad Ali As Marcellus turns three, we reaffirm our commitment to our 7,000 clients to make wealth creation simple and accessible, by being trustworthy and […]
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