Strategy Series

Our articles specific to the six investment strategies we offer. Whether you invest with us or are looking to invest, these
articles can you give you an insight into why we make the decisions we make.

Rising Giant
Invest in Dominant B2B Firms in Highly Profitable Industries

The industry in which B2B firms operate can have an outsized impact on their compounding potential. Over FY14-23, some sectors like IT, Light Industrials and Chemicals have generated twice as much RoCE and share price returns as compared to sectors like Energy and Metals & Mining (which struggle to return even cost of capital). This […]

AUG 07 . 10 MIN READ READ MORE
Rising Giant APR 24 . 8 MIN READ
Outsized Earnings Growth Alongside Falling Share Prices
READ MORE
Rising Giant FEB 20 . 6 MIN READ
Short Term Excitement vs Long Term Wealth Creation
READ MORE
Rising Giant JAN 18 . 9 MIN READ
The Cheaper They Get, The More We Buy
READ MORE
Rising Giant

Invest in Dominant B2B Firms in Highly Profitable Industries

The industry in which B2B firms operate can have an outsized impact on their compounding potential. Over FY14-23, some sectors like IT, Light Industrials and Chemicals have generated twice as much RoCE and share price returns as compared to sectors like Energy and Metals & Mining (which struggle to return even cost of capital). This […]

Aug 07 . 10 MIN READ READ MORE
Rising Giant

Outsized Earnings Growth Alongside Falling Share Prices

In this month’s newsletter, we ask whether the Rising Giants (RG) stocks were ‘richly’ valued when we bought them? Using an earnings growth of 20% (5% for the terminal year) and cost of capital of 12%, the median longevity implied by the then prevailing market prices for the RG portfolio rose from 8 years as at FY18-end […]

Apr 24 . 8 MIN READ READ MORE
Rising Giant

Short Term Excitement vs Long Term Wealth Creation

Every year there will be a couple of sectors and a handful of stocks that give outsized returns helped by short term earnings momentum and narratives around the same. However, such sectors and stocks are generally unable to replicate their short-term success over the medium to long-term. While chasing momentum can provide short term enrichment, […]

Feb 20 . 6 MIN READ READ MORE
Rising Giant

The Cheaper They Get, The More We Buy

The long-term valuation of a company is determined by the growth and longevity of its free cash flows (FCF). Its share price, on the other hand, is heavily influenced by near term earnings/events. This creates a disconnect between the intrinsic value of the company and its share price. This disconnect has been stark for the […]

Jan 18 . 9 MIN READ READ MORE

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The Gold List

The best collections from the Marcellus Library

FEATURED PODCAST

Amidst high input cost inflation, pricing power protects margins & market share of CCPs

Mar 10, 2022 WATCH NOW

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Arvind Kapil, R Lakshminarayan & Anjani Rathor – Imp of Tech as a source of competitive advantage

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Fireside Chat with Padma Shri Awardee & former CFO and Board Member of Infosys – Mohandas Pai

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Consistent Compounders

When ‘Loss Aversion’ Meets ‘Time Horizons’ in Equity Investing

Investors’ decision making is often underpinned by a key psychological trait – loss aversion. As explained by  Noble laureate Daniel Kahneman, the result of ‘loss aversion’ is that our pain from losses is more than twice  the joy from equal amounts of gain. Juxtaposing this idea to the CCP investing approach discussed in our  book […]

Feb 06 . 8 MIN READ READ MORE
Consistent Compounders

The Path to Consistent Compounding is Paved with Free Cashflow

There are four key drivers of free cashflow in a business – revenue growth, profit margins, working capital efficiency, and asset turnover. The order of importance across these four drivers differs across businesses. As Marcellus’ CCP companies invest in technology to improve operational efficiencies, those companies that sell day-to-day essentials to their customers whilst avoiding […]

Nov 02 . 17 MIN READ READ MORE

FEATURED BLOGS

Busting Popular Macroeconomic Myths

  • BEHAVIOUR
  • CULTURE
Feb 21 . 5 MIN READ READ MORE

Asian Paints vs Sherwin Williams: Different Paths to Dominance

  • BEHAVIOUR
  • CULTURE
Jan 25 . 10 MIN READ READ MORE

The Best Newsletters of 2021

  • BEHAVIOUR
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Dec 29 . 5 MIN READ READ MORE

Recommended Reads

Some of our best reads you shouldn’t miss on Marcellus

Portfolio Performance and Update on Fundamentals August

Sep 18 . 9 MIN READ READ MORE

Learning from history: Discounting in Financial Services is a bad strategy

Sep 07 . 11 MIN READ READ MORE

Why MeritorQ has 30-45 stocks?

Aug 29 . 5 MIN READ READ MORE

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HANDPICKED ARTICLES FOR OUR ACTIVE INVESTORS

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