‘Winner Takes All’ in India’s New, Improved Economy.
Capitalising on the exponential surge in digital transactions and the massive improvements in transport infrastructure and market structure seen over the past decade, a handful of Indian companies – no more than 20 – are taking home ~80% of the profits generated by the Indian economy. Simultaneously, a mere 20 companies account for 80% of […]
Avoiding Non-linear Risks Tends to be Rewarding
When the economic climate is benign, the share prices of financial services companies do not adequately capture the risks of aggressive lending and governance practices. The true intrinsic value of such companies becomes apparent only when such risk actually play out. History shows that when the risk plays out, the market cap of such companies […]
R-R-R-Rising Giants
For the four quarters ending 2QFY23, the Rising Giants portfolio witnessed median revenue growth of 23% and EBITDA growth of 14%. Some portfolio companies faced headwinds around Covid-19 related revenues tapering off and higher input prices. However, as is the norm in stockmarkets, the -16.44% price correction in the portfolio (since inception) is extrapolating these […]
Twenty Years of Jimmy Anderson: From frustrated tips to statistical marvel
At Marcellus, we look to assess the greatness of companies using our ‘Longevity framework’ as it is not just strong performances but performances of the highest levels of quality that endure for long periods of time that underpin greatness. For those of us who thought there can’t be a greater fast bowler than Wasim Akram, […]
What fusion’s breakthrough means for clean energy
Nuclear fusion as a source of clean energy has become the last hope for climate change. The 3L&3S has been following developments in the area closely – see here and here. Indeed, this week was a time for celebrating mankind’s progress towards achieving it. American scientists achieved a net gain in their fusion reaction i.e, more energy was […]
Book review – ‘Making Numbers Count’ Review: As Easy as 1, 2, 3
If like us, you too make a living by thinking about numbers, contextualising them and then explaining them to others then you should consider reading this book ‘Making Numbers Count: The Art and Science of Communicating Numbers’ by Chip Heath & Karla Starr. The book explains that there is a right way and a wrong […]
Memo from Howard Marks: Sea Change
Whilst the markets celebrated the last two US inflation prints in anticipation of a pause in rate hikes or even a more accommodative monetary policy, earlier this week, the Fed took another 50bps hike (though less than 75bps of the previous instances) and remarked that it will continue to ‘squeeze the economy in 2023’. As […]
Why everyone should pay more attention to India
Shruti Rajagopalan is an Economist at George Mason University in Fairfax, Virginia. Two weeks ago she published a blog which the whole world seems to have read. In case you haven’t, our recommendation is that you read it not least because the blog presents India’s key numbers relating to its economy, its demographics, its tech […]
The secret lives of MI6’s top female spies
Contrary to what middle-aged men might think after a lifetime of watching James Bond and Mission Impossible movies, in the real world women, not men, make the best spies. This long read in the FT from a former MI6 (also called Special Intelligence Service or SIS) explains why this is so [hint: it has nothing […]
Why Finance is Hard to Decentralize
Over the past two months, the Indian central bank, the RBI conducted pilots around the digital Rupee or India’s CBDC (Central Bank issues Digital Currency) across both wholesale and retail market transactions. These have in-turn triggered debate around whether this can disintermediate the banking system. Whilst theoretically possible, the fact that the RBI chose banks […]
Has private equity avoided the asset-price crash?
The Economist follows up on a theme we have featured twice in 3L&3S this year (see here and here) – how unlike public equities which have been marked down by the market this year, private assets have been stable or atleast based on one report seem to have appreciated this year. “A huge gap between the valuations of […]
Enough longtermism — we need to think about now
Over the past twelve months, Stuart Kirk – former editor of the FT’s famous Lex column and former head of responsible investment at HSBC Asset Management – have become famous for calling out what he says is a racket in which vested interests are riding the ESG investing bandwagon and lining their pockets. In this […]
For more content on our strategy, visit the archives GO TO ARCHIVES