Consistent Compounders

The long history of fragrant food in India, from massaging hens with musk to cooking in leaves

Like most Indians, most Marcellus staff members have an obsession about eating well. However, whilst we are willing to invest significant time and money to satiate our eating obsessions, this piece from Priyadarshini Chatterjee confirms that our efforts pale in front of what our ancestors were capable of: “In any gustatory experience, aroma is as important […]

May 29 . 4 MIN READ
Consistent Compounders

Japan 1970s, not USA 1970s, is the better guide to what lies ahead for India

Contrary to the fashionable view that the Indian stock market will crater alongside the American stock market (as the Federal Reserve pursues aggressive rate tightening), we believe that India is more likely to follow the trajectory of Japan in the 1970s. As oil prices rose 10x through the 1970s, the US stock market went nowhere […]

May 28 . 14 MIN READ
Consistent Compounders

Well Placed in a World with Rising Rates

Even after the RBI’s 40bps repo rate hike on 4th May 2022, repo rates are still 70bps below pre-Covid levels while inflation is trending well above pre-Covid levels. Hence we expect interest rates to rise further over the next few quarters. During three of the four rising interest cycles over the past two decades, the Bank […]

May 24 . 9 MIN READ
Consistent Compounders

How do we know which Promoter(s) to back?

Taking a call on a small cap company is, to a large extent, taking a call on the promoter(s). Besides the promoter’s track record of capital allocation and experience of dealing with crises, another important assessment of promoter quality is the extent to which she is financially & emotionally invested in single mindedly running the […]

May 23 . 10 MIN READ
Consistent Compounders

‘This is the real World Cup…proud of team’

They are calling it the 1983 moment for Indian badminton. The reference to India’s first cricket world cup win is only apt as it drove the whole nation to get obsessed about one sport to the extent now we are consistently at the top of world cricket. With last Sunday’s Thomas Cup (a world cup […]

May 22 . 4 MIN READ
Consistent Compounders

You Eat a Credit Card’s Worth of Plastic Every Week

Many of us have been aghast at the pictures showing the vast plastic dump somewhere in the Pacific. “…plastic is omnipresent. Plastic is cheap and easy to make and mold. We use this miracle polymer to store and transport food, make our clothes and cosmetics, cars and boats, detergents and fertilizers, transfuse our blood and […]

May 22 . 4 MIN READ
Consistent Compounders

The Rise After the Fall

Ted Lamade writes this guest post for the Collaborative Fund about the fallout of a prolonged bull market that we saw over the last 13yrs – many of us have either forgotten or some not even learnt the ability to rise after the inevitable fall. “In the midst of one of the longest bull markets […]

May 22 . 4 MIN READ
Consistent Compounders

What the CIA thinks: William Burns on the new world disorder

Whilst financial markets have been battered on the back of central bank action on interest rates and liquidity, far more serious developments are underway on the geo-political front. Edward Luce, the US national editor at the Financial Times, someone with a long history of covering America’s role in the world order as the Washington bureau […]

May 22 . 5 MIN READ
Consistent Compounders

Bonuses are outdated in the age of knowledge work

Three years ago we debated for months on end before finalising the compensation philosophy which guides Marcellus’ HR team today. The central point of debate for the Marcellus leadership was bonuses – Should they be paid? If so, how much and on what basis? Given that there is very little useful research / published material […]

May 22 . 3 MIN READ
Consistent Compounders

The Economist’s cover story – India is likely to be the world’s fastest-growing big economy this year

Over the past couple of years we have written not just about the structural changes in India which are allowing high quality companies to consistently growth their cashflows (see https://marcellus.in/blogs/three-distinct-layers-of-polarization-in-the-indian-stock-market/) but also how China has repeatedly scored own goals which have hammered the ability of Chinese companies to compound their shareholders’ wealth (see https://marcellus.in/blogs/why-india-beats-china-hollow-on-consistent-compounding/). As you would […]

May 22 . 3 MIN READ
Consistent Compounders

Shivkumar Sharma was a musician’s musician – he thought music

Indian classical music has contributed some great musicians to the world music scene no doubt but it wasn’t just the music that these musicians brought but also entirely new sounds thanks to some unique musical instruments. Perhaps the most unique of such musician-instrument combinations has to be Pandit Shivkumar Sharma and the santoor. Pandit Sharma […]

May 15 . 2 MIN READ
Consistent Compounders

Artificial intelligence and what it owes a man who never sits down

The hammering tech stocks have been under this year notwithstanding, there is no denying the  massive strides the tech industry has made over the past decade. Most notably in the area of artificial intelligence and its practical applications. This piece is to acknowledge the contribution to this field of Geoffrey Hinton, a cognitive psychologist and […]

May 15 . 3 MIN READ

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