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👇
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.
- 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!
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.
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
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.
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
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."
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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