Breaking Investment Stereotypes - a quick capsule📌 of our 🎙️ with Saurabh Mukherjea (@MarcellusInvest).
We know this cannot capture all we learnt from the hour long discussion - check the full recording for that🤠
See select snippets in thread below👇
1/8 Here is how Saurabh describes Marcellus's investment philosophy in simple terms 👇
- Clean promoters
- Essential products
- Monopoly franchises.
2/8
The true test of a monopoly is not market share, but pricing power. A monopoly is when even if a rival comes and offers the product 20% cheaper, the customer will say I am not shifting boss!
3/8
Thoughts on India’s financial services industry -
Bizarrely fragmented due to:
1⃣ Public sector intervention
2⃣ Collusion and corruption
3⃣ Our financial services sector itself is very small.
Two trends he indicates are Consolidation and financialization of savings.
4/8
Why Saurabh avoids investing in Real Estate🏠:
✅ Owning first home driven by emotions
❌ No business case for buying property for investment - rental yields lower than bond yields.
🏢Commercial RE has better rental yields
5/8
Why Marcellus sold #ITC🚀after last AGM, despite it meeting most of their investment criteria.
Two words - Capital Allocation.
6/8
How can retail investors get better at Forensic analysis on their investments?
Two book recommendations:
1⃣ Financial Shenanigans by @HowardSchilit
2⃣ Accounting for Growth by Terry Smith
7/8
Saurabh on Investment Stereotypes - Any form of stereotype are best avoided in the current world.
Quotes Kahneman:
"The reason we create stereotypes is because it's a heuristic that helps us deal with day to day life. Unfortunately, it doesn't hold true anymore."
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