Consistent Compounders

Open network for e-commerce: It’s an idea whose time has come

One of the key elements of The Economist’s last month’s cover story on India titled ‘India’s Moment’ was the national “tech stack”. The article said “As the country emerges from the pandemic, however, a new pattern of growth is visible. It is unlike anything you have seen before. An indigenous tech effort is key. As the cost of […]

Jun 12 . 4 MIN READ
Consistent Compounders

Tata Power bets on microgrids for rural power supply in India

In our 28th May blog we highlighted that like Japan in the 1970s, India too is poised to pivot away from fossil fuel based power generation. Already 14% of India’s power generation is from solar. This FT story about how Tata Power is investing in microgrids as a precursor we believe of how India will tap […]

Jun 12 . 2 MIN READ
Consistent Compounders

We were all wrong’: how Germany got hooked on Russian energy

Whist the war in Ukraine sees no signs of peace, oil prices have rallied again as Europe imposed sanctions on Russian Oil. However, as George Soros highlighted in his Davos speech, it is not easy for Europe, in particular Germany, to wean itself of Russian gas. How bad exactly is Europe’s dependence on Russian energy? The […]

Jun 12 . 5 MIN READ
Consistent Compounders

About 200 years ago, the world started getting rich. Why?

We are all taught in secondary school that the world started getting rich two centuries ago because the Industrial Revolution started. What we are NOT told is why did the Industrial Revolution take place 200 years ago rather than at any other point in human history. We are not also told why did the Industrial […]

Jun 12 . 4 MIN READ
Consistent Compounders

The Netflix Hit “RRR” Is a Political Screed, an Action Bonanza, and an Exhilarating Musical

Having been under the colonial yoke themselves, the Americans have a less romantic view of the British Raj than the British. It is in that context that Richard Brody’s review of Rajamouli’s superhit movie ‘RRR’ becomes a riveting read – the review celebrates the movie’s in-your-face criticism of colonialism as much as it celebrates the […]

Jun 12 . 3 MIN READ
Consistent Compounders

A Framework for Assessing Competitive Advantages in the Digital Era

Given the vibrancy of India’s startup ecosystem, it is interesting to see what sort of competitive advantages businesses of this sort can build. We use five parameters – (1) Barriers to Entry, (2) Product Complexity, (3) Customer Stickiness, (4) Bargaining Power & (5) Network Effects – to assess the strength of online businesses & apply […]

Jun 07 . 5 MIN READ
Consistent Compounders

Making brainstorming better

When we are fazed with a problem demanding a creative solution, we often call for ‘brainstorming’ sessions to thrash it out. But many of us sometimes find these sessions ineffective at best, painful at worst. This piece in the Bartleby column identifies inherent conflicts in such exercises which require a balanced approach to make them […]

Jun 05 . 3 MIN READ
Consistent Compounders

Rallies to the Bottom

Bear market rallies are important to understand for those who fancy their chances of catching the bottom or in general time the market. And no better than Nick Magguilli to use plenty of data to drive the point home. US markets were up c.7% in the week ending 27th May tempting many to call the bottom. […]

Jun 05 . 3 MIN READ
Consistent Compounders

Jack Welch, The Man Who Broke Capitalism

The world of business is full of larger than life businessmen or CEOs who are credited with the entire success of the company. In some cases, it is well justified, especially in a company’s early stage of development where the idea, the passion and perseverance of one individual drives the company’s fortunes almost entirely. However, […]

Jun 05 . 5 MIN READ
Consistent Compounders

Olivier Blanchard: ‘There’s a tendency for markets to focus on the present and extrapolate it forever’

With crude rallying back above $120, there seems to be no respite from the inflationary pressures affecting the global economy. Given this situation has resulted from both demand side (unprecedented stimulus – monetary and fiscal during the pandemic) and supply side factors (broken supply chains, war and Chinese lockdown), it isn’t particularly straightforward to assess […]

Jun 05 . 5 MIN READ
Consistent Compounders

My investment lessons from 40 years in China

For those of us who have never worked in China or invested in that vast country, China remains for us a fascinating and somewhat forbidding nation. In this piece, Steve Watson, a portfolio manager at Capital, shares his experiences of travelling to and investing in China over the past 40 years. He begins by recounting […]

Jun 05 . 4 MIN READ
Consistent Compounders

Still Top Gun? What Tom Cruise’s new movie tells us about American power

The producers of ‘Top Gun’ could not have timed the release of the movie ‘Top Gun: Maverick’ better. It was launched in a week in which Joe Biden was visiting Japan and talking about protecting Taiwan from China. The Chinese in turn were mouthing off at the ‘bloody & barbaric’ Americans. For those of who […]

Jun 05 . 3 MIN READ

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