Elaborating on the power of simplicity, the authors not only drive home the point that “In an increasingly complex world, simplicity is the key to success. And to mental well-being and a better life on the whole” but also provide a step-wise guide of sorts to achieve simplicity – think different, deliberate practice and deep thought and relying on decisions based on frameworks or rules than judgements. The piece includes examples of simplicity from the investing world such as the successes of Systematic Investing Plan (SIP) and Exchange Traded Funds (ETFs). But the most fascinating example of the outperformance of businesses which make up the Simplicity Index – “Simple businesses can also make for great investments. Branding firm Siegel+Gale runs the Simplicity Index, which surveyed 14,000 respondents in nine countries to gather perspectives on simplicity and how industries and brands make people’s lives simpler or more complex. Siegel+Gale even made a stock portfolio comprised of the publicly traded simplest brands in their global top 10 list. That portfolio rose 433% from 2009 till 2016, compared with 135% for the S&P 500.”
If you want to read our other published material, please visit https://marcellus.in/blog/
Note: The above material is neither investment research, nor financial advice. Marcellus does not seek payment for or business from this publication in any shape or form. The information provided is intended for educational purposes only. Marcellus Investment Managers is regulated by the Securities and Exchange Board of India (SEBI) and is also an FME (Non-Retail) with the International Financial Services Centres Authority (IFSCA) as a provider of Portfolio Management Services. Additionally, Marcellus is also registered with US Securities and Exchange Commission (“US SEC”) as an Investment Advisor.
