How to assess whether the current greatness of portfolio companies can sustain over time.
#BQOpinion by @MarcellusInvest's Saurabh Mukherjea & Harsh Shah.
bit.ly/3x79z3C
@MarcellusInvest On average, only 40-50% of the Nifty 50 index constituents continue to remain in the index after a decade, find @MarcellusInvest’s Saurabh Mukherjea & Harsh Shah.
Read their #BQOpinion column: bit.ly/3x79z3C
@MarcellusInvest #BQOpinion | As one would expect, upon exiting, these companies see a significant decline in their market capitalisation and thus the wealth of their shareholders.
Read @MarcellusInvest’s Saurabh Mukherjea & Harsh Shah: bit.ly/3x79z3C
@MarcellusInvest Jim Collins’ celebrated book ‘How The Mighty Fall’ provides a useful framework to identify early signs of whether a hitherto successful company is now declining, write Saurabh Mukherjea & Harsh Shah.
Read more in #BQOpinion: bit.ly/3x79z3C
@MarcellusInvest The journey of a company from greatness to failure is analogous to a terminal disease.
Read @MarcellusInvest’s Saurabh Mukherjea & Harsh Shah in #BQOpinion.
bit.ly/2VgDhpC
@MarcellusInvest In Stage 1, the company has high pricing power, high RoCEs, and healthy free cash flow generation.
However, this leads to ‘arrogance negligence’, write Saurabh Mukherjea & Harsh Shah in #BQOpinion: bit.ly/3eX1CrO
@MarcellusInvest In Stage 2, the hubris at the top management along with ballooning cashflow from core business leads management to feel that success is assured.
Read more in #BQOpinion: bit.ly/3eX1CrO
@MarcellusInvest In Stage 3 of denial or risk and peril, a two-pronged Janus-faced strategy is adopted by the management, write Saurabh Mukherjea & Harsh Shah.
Read more in #BQOpinion: bit.ly/3eX1CrO
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