What portfolio gives you sound 'sleep at night'? A portfolio that consists of great companies. How do you define great? Great financial performance because stock prices follow profits and cashflows.
What is great financial performance? India's nominal GDP growth is around 12% (7% real + 5% inflation) so a great company should be able to deliver around 10% growth *every year*. And...
...a great company should be able to recover its cost of capital. Capital is very expensive in India. Taking 10yr G-Sec rate of 7% + equity risk premium of 8% (5% global + 3% for India), you have CoC of 15%, year after year.
So, any company that delivers 10% revenue growth and 15% ROCE year after year for long periods of time - at least 10yrs - is a great company.
The idea of holding great stocks for long periods of time sounds very normal today but its origins go back to Robert Kirby and the Coffee Can story. PDF: csinvesting.org/wp-content/upl…
This was the construct for The Unusual Billionaires book, India's first deep investigation into corporate greatness. Saurabh @MarcellusInvest wrote this back in 2016: amazon.in/Unusual-Billio…
Why is a portfolio of great stocks important? because this portfolio can transform your personal finances and help you achieve very important goals in life.
India's savings are stuck in low-yielding physical assets. An RBI household survey estimates that 95% of the average Indian household's wealth is physical assets (real estate + gold): livemint.com/Opinion/u5gwrD…
In 2018, Saurabh @marcellusinvest wrote what is now India's largest selling book on personal investments 'Coffee Can Investing': amazon.in/Coffee-Can-Inv…
Follow the thought structure here. First, what are great companies, second, how can these great stocks transform your financial dreams. And finally - how can these lessons of greatness transform your lives?
Earlier this year, Saurabh @MarcellusInvest wrote The Victory Paradigm bringing this thought process to its logical end.
In this book, we researched the drivers of success in highly competitive industries and professions. We interviewed eight experts from varied fields and...
...developed the Simplicity Paradigm - a six-step framework that can help you achieve peak potential. Released in August, the book is in Amazon's best seller list: amazon.in/Victory-Projec…
So, for the best part of this decade, we've spent reesarching and writing about greatness- in corporates, in portfolios, and in people. The Victory Project is culmination of this research - hope you like it! Fin.
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