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The Unusual Billionaires By Saurabh Mukherjea

The Unusual Billionaires By Saurabh Mukherjea

Gist by Rasmeet Singh Sethi

  1. Asian Paints : Seven Decades of Excellence
  2. Berger paints : 250 Years in the Marking
  3. Marico : From a Commodity Trader to an FMCG Giant
  4. Page Industries : Jockeying from Manila to Bengaluru
  5. Axis Bank : Confounding the Sceptics Repeatedly
  6. HDFC Bank : The Power of Textbook Execution
  7. Astral Poly: To the Brink and Back

Greatness is the ability of a company to sustain superior financial performance for a long period of Time

IBAS Framework – Innovation, Brands & Reputation, architecture & strategic Asset

A rupee invested in Page Industries IPO in march 2007 is worth Rs 34 presently (april 2016), implying a compounded annual return of 47%. That same rupee would be worth just Rs 2 if invested in the sensex implying CAGR of 8%. Thus Page Industries has outperformed the sensex by 16.6 times over the past 9 yrs. Lot of lessons to be learned in other stocks and reason behind the superior performances

Theme A:
Focus on the Long Term (More than 10 years) without being distracted by short term gambles
Theme B:
Constantly deepen the moat around the core franchise using the IBAS (innovation, Brands, Architecture & Strategic Assets) framework
Theme C
Sensibly allocate capital whilst studiously avoiding betting the balance sheet on expensive and unrelated forays

Checklist for Investment
Industry Attractiveness
Management Quality
Competitive Advantages

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