Consistent Compounders

Jason Kilar on the Chaotic Streaming Wars—and How This Hollywood Story May End

Netflix, the global streaming giant has had a roller coaster ride in terms of its share price – after soaring 25x in the decade preceding the peak of the tech boom last year, it lost almost 70% by this summer. Whilst the fall in shares can be partly attributed to some generic reasons that affected […]

Dec 11 . 3 MIN READ
Consistent Compounders

How Top Gun: Maverick shocked the world

In the 27th November edition of 3 Longs & 3 Shorts we had highlighted Y Combinator founder Paul Graham’s blog titled “Do things that don’t scale” – see http://paulgraham.com/ds.html . As luck would have it, a fortnight later we came across a perfect case study of an incredibly lucrative business which can’t be scaled (and it is lucrative […]

Dec 11 . 4 MIN READ
Consistent Compounders

Rocketing to space: ISRO’s open infrastructure is giving wings to startups

Over the past decade the steps India has taken to methodically build a unique set of digital public assets is steadily making the country more efficient – see our blog https://marcellus.in/blogs/from-aadhaar-to-ondc-indias-methodical-build-of-digital-assets-creates-competitive-advantages/ In this context that the Indian Space Research Organisation, ISRO’s, remarkable decision to open up its knowledge, its IP and its platform to startups is very […]

Dec 11 . 2 MIN READ
Consistent Compounders

MeritorQ: Strength Lies in Numbers

The operational efficiency of the quantitative approach we take in MeritorQ allows us to analyze and rank  stocks over a large investment universe on a consistent set of metrics. Ranking over a large peer group of  companies magnifiesthe power of statistical analysis and hence the reliability of the screening and selection  steps. Another benefit of […]

Dec 08 . 8 MIN READ
Consistent Compounders

Haters

Last week we featured a piece by Paul Graham, best known for the start-up incubator, Y Combinator. Last week’s piece was advice to founders on building sustainable competitive advantages whilst this one, albeit a bit dated is also advice to founders, on how to deal with ‘haters’ that inevitably come with success and in particular, fame. First, […]

Dec 04 . 4 MIN READ
Consistent Compounders

From GE to FTX, beware the Icarus complex

A few weeks ago, we featured a podcast about the rise and fall of GE, the American conglomerate with a Morningstar analyst. This week’s Schumpeter column in the Economist features the recent book on the same subject – ‘Power Failure’ by William D Cohan, which seems to have the same message as the podcast – Jack Welch […]

Dec 04 . 3 MIN READ
Consistent Compounders

Investor Howard Marks: ‘The short run is by far the least important thing’

Most of us in Marcellus know Howard Marks for his outstanding books and his remarkably well written investment memos. What we also know now thanks to this lively interview in the FT is: “He began writing the memos in 1990, initially sending them by post to Oaktree’s 50 or so clients. For the first 10 years, […]

Dec 04 . 3 MIN READ
Consistent Compounders

The World Cup’s New High-Tech Ball Will Change Soccer Forever

The football world cup is not known as the greatest show on the planet for no reason. It is indeed the beautiful game and most watched sport globally. The tournament has taken off with much excitement what with Argentina, Germany and Belgium facing upset defeats, enough to drown the initial controversy around the event’s hosts. […]

Dec 04 . 3 MIN READ
Consistent Compounders

J. Edgar Hoover, Public Enemy No. 1

As we watch strongmen in Russia and China propel their great countries towards ruin, it is worth remembering that even in established democracies, autocrats can flourish and cause immense damage. This article based on a new biography of J Edgar Hoover, the man who ran the FBI from 1924 up to his death in 1972, […]

Dec 04 . 4 MIN READ
Consistent Compounders

‘They want toys to get their children into Harvard’: have we been getting playthings all wrong?

This long read is a tribute to capitalism’s ability to tap into our insecurities by using pseudoscience and thereby persuade us to spend tens of billions of dollars every year on useless bits of plastic. The author is a father of a 10-year old child in the UK and begins by noting that like him, […]

Dec 04 . 5 MIN READ
Consistent Compounders

Four years of CCP: 98.2% total returns, 18.6% CAGR

A review of the last four years of CCP returns highlights the consistency of performance across investee  companies – almost all constituent stocks have compounded their share prices at 15-30% annually demonstrating that stock selection contributed significantly to portfolio returns. Additionally, portfolio  management tools such as the Longevity Framework and Margin of Safety & Sustainability […]

Dec 02 . 7 MIN READ
Consistent Compounders

Powering Through the Slowdown

In 2QFY23, Little Champs Portfolio (LCP) witnessed median revenue growth of 24% and PBT growth of 14%.  However, some portfolio companies did face headwinds around revenues (Covid-19 related revenues  tapering off, impact from price hikes) and margins (raw material and energy costs up). However, these  headwinds have been abating in recent months which should aid […]

Nov 29 . 12 MIN READ

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