Consistent Compounders

‘Our team will win’: how so many Indians started supporting Argentina

The FIFA football world cup remains the greatest show on the planet. Last Sunday’s incredible final proving it beyond doubt. It is clearly the most popular sport on the planet but the eventual winners Argentina turned out to be the most popular team for neutrals across the world. Lionel Messi’s genius and the fact that […]

Dec 25 . 2 MIN READ
Consistent Compounders

Is India’s defence business a good news story or bad? Perhaps both, but changing for the better

There is a lot of excitement about defence stocks these days. Having seen such bouts of excitement before, the team at Marcellus is a more than a little circumspect about such excitement. For those who are excited about investment opportunities in the context of defence spending in India, the legendary TN Ninan has some sobering […]

Dec 25 . 2 MIN READ
Consistent Compounders

On China, government needs to be more forthcoming

We published a note last month on the positive economic implications – from an Indian perspective – of the ongoing unravelling of the Chinese economy – see https://marcellus.in/blogs/chinas-unravelling-creates-a-300-billion-opportunity-for-india/ However, as Pratap Bhanu Mehta explains in this edit piece, the challenge that India faces is that the more China unravels, the more India’s economy & influence […]

Dec 25 . 2 MIN READ
Consistent Compounders

The collapse of insects

Plenty tends to get written about in terms of harmful effects of climate change. But thanks to one of our readers who shared this brilliant graphics piece, we learn about the unnoticed damage to the large class of creatures in the animal kingdom – insects. Scientists apparently refer to this as the ‘Insect Apocalypse’. This […]

Dec 25 . 4 MIN READ
Consistent Compounders

Investing in an age of disruption

What makes investment management a super interesting profession is that there doesn’t have to be one right way of investing. If Lindsell Train’s newsletter was all about finding Anti-Fragile businesses which can not only withstand the test of time and technological disruption but emerge stronger, this speech from another fund manager is a little more […]

Dec 25 . 4 MIN READ
Consistent Compounders

The Triumph of Experience Over Hope

For a few years now, it has been fashionable to say that we are living through a pace of accelerating technological change which shortens the lifespan of companies. Commentators who say these sorts of things (eg. management consultants, brokers & bankers) also enjoy noting that most investors are now traders i.e. people who seem to […]

Dec 25 . 4 MIN READ
Consistent Compounders

‘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 […]

Dec 24 . 22 MIN READ
Consistent Compounders

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 […]

Dec 23 . 8 MIN READ
Consistent Compounders

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 […]

Dec 19 . 9 MIN READ
Consistent Compounders

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, […]

Dec 18 . 3 MIN READ
Consistent Compounders

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 […]

Dec 18 . 3 MIN READ
Consistent Compounders

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 […]

Dec 18 . 2 MIN READ

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