Consistent Compounders

When hyping technology is a crime

The previous piece segues into this piece. Coming from the editor of Science, the most authoritative of scientific journals, this is a timely warning for many of us (including the team at Marcellus) not to get carried away by overhyped technologies. Whilst Holden Thorp focuses on Elizabeth Holmes, the now convicted CEO of Theranos (the […]

Jan 23 . 2 MIN READ
Consistent Compounders

The Crytocurrency Deception

In this day and age of unrelenting hype around cryptocurrency, it is easy to lose sight of some basic facts. In this opinion piece in the Indian Express, Yogesh Gupta, formerly of the CBI and the Enforcement Directorate, reminds us of a coupe of straightforward facts around cryptocurrency.Firstly, by no stretch of the imagination is […]

Jan 23 . 3 MIN READ
Consistent Compounders

China Is Watching Ukraine with a Lot of Interest

Vladimir Putin is going eyeball-to-eyeball with America and Western Europe in Ukraine and this article in Atlantic explains why countries China (and therefore countries neighbouring China) are looking at the situation with a lot of interest. Why? Because it will give them a measure of whether the Americans and the Europeans have it in them […]

Jan 23 . 3 MIN READ
Consistent Compounders

‘Colonialism had never really ended’: my life in the shadow of Cecil Rhodes

You might want to have a strong drink before you read this hard hitting piece in The Guardian. This long read comes from Dr Simukai Chigudu, a Zimbabwean academic in Oxford University. It talks about the world from the perspective of an affluent black Zimbabwean but this piece is just as relevant for Indians struggling […]

Jan 23 . 6 MIN READ
Consistent Compounders

Review of Dr Jonathan Knee’s book “The Platform Delusion: Who Wins and Who Loses in the Age of Tech Titans”

If you are investing in tech companies you should read “The Platform Delusion”. You might disagree with some of the arguments made in the book but you will also find that the core proposition of the book – that the competitive position of the FAANG stocks (and companies similar to them elsewhere in the world) […]

Jan 23 . 5 MIN READ
Consistent Compounders

Getting Stronger With Every Covid Wave

As we now have six quarters of reported financials since the pandemic began, we are getting a clearer picture of the impact of Covid induced disruptions on lenders. Despite the severe second Covid wave, the increase in GNPAs i.e. net slippages for KCP lenders such as HDFC Bank, Kotak Bank and Bajaj Finance during the […]

Jan 18 . 9 MIN READ
Consistent Compounders

Will Chatbots replace the art of human conversation?

The rise of artificial intelligence has raised concerns that as computers get smarter they will replace humans in most activities. However, this piece shows that is still a long way off. It focuses on the field of chatbots – an automated helpdesk of sorts that otherwise would have been manned by a human being typically […]

Jan 16 . 2 MIN READ
Consistent Compounders

The Worrisome Rise of NFTs

Mostly one would have brushed aside the NFT mania as yet another bubble humanity has created and will eventually burst in its natural course. Except for two differences – first, in support of NFT, there are some genuinely useful applications of NFTs and the second, a shortcoming – the energy intensity of NFTs. Hence this […]

Jan 16 . 3 MIN READ
Consistent Compounders

Howard Marks’ Memo – Selling Out

We began 2021 with perhaps one of Howard Marks’ most remarkable memos – Something of Value, where the great man showed why humility is the hallmark of a successful investor by acknowledging the shift in what value investing means i.e, it is simply not about low multiples. We start this year with another remarkable piece by the […]

Jan 16 . 7 MIN READ
Consistent Compounders

The Locker Room

In this superb guest post for the Collaborative Fund, Ted Lamade explains – using examples from sports and business – why teams with less talented players often triumph over teams comprised of superstars. The first interesting point that Ted makes – and you should pay close attention to this if you are, like many of […]

Jan 16 . 4 MIN READ
Consistent Compounders

The Alternative to Closing Schools

Last week, we learnt that the municipal corporation in Mumbai has ordered schools to remain closed for another six weeks which means that by the time schools reopen in Mumbai – which most parents are hoping will be March 2023 – it will be two years since our kids last went to school. Obviously, Mumbai’s […]

Jan 16 . 4 MIN READ
Consistent Compounders

How Little Champs Become Consistent Compounders

A basic takeaway of cashflow based valuation is that a longer a company generates healthy free cash flow (FCF) growth, the higher its intrinsic value. Our longevity framework helps in assessing, using objective parameters, how long a company is likely to sustain healthy growth in FCF. For younger companies like the Little Champs, after a […]

Jan 10 . 8 MIN READ

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