Mr.Saurabh Mukherjea - Marcellus, Talks on "How to think & build a business like a monopolist"

A monopolist controls all of the market for a particular good or service. A monopolist probably also believes in policies that favour monopolies since it gives them greater power. This is the reason the stock market likes monopolies excessively. Speaking on this very important subject was none other than Mr. Saurabh Mukherjea, Founder & CIO, Marcellus. It was by all accounts an enthralling session, but it was special for PMSBazaar and Marcellus because exactly two years ago Mr. Saurabh had announced in a PMSBzaar summit that he has received the permit to manage money in India and today his company oversees Rs 5,000 crore in assets.
It is no secret that great promoters in India think like monopolists. This is not necessarily bad, Mr. Saurabh said, because such businesses allow all to compound wealth at a steady rate. Understanding the monopoly construct is central to making money in Indian stock markets, he added.
It may come as a shock but India’s 20 largest profit generators actually deliver 70% of India’s profits. In many sectors, the top 1-2 companies account for 80% of the profit pie, MR. Saurabh said, giving examples of paints, small cars, biscuits, cigarettes, adhesives, cooking oil, hair oil, baby milk, glass lined reactors, aliphatic amines etc.
Monopolies as business enjoy consistent success. Monopolists report robust earnings growth year after year. Whether you look at 3 year or 5 year earnings per share patterns, the compounding of Indian monopolists is around 20% mark, Mr. Saurabh said.
Attributing some of the lessons to venture capitalist Mr. Peter Thiel who wrote the book ‘Zero To One’, Mr. Saurabh said that all happy companies are different. Each one earns a monopoly by solving a unique problem. All failed companies are the same, they failed to escape competition.
Further talking about how monopolists build their business,
Mr. Saurabh said they identify businesses where there is a narrow unserved market, capture the market comprehensively and build entry barriers. They then only think about scaling up to capture the broader market.
Giving examples of Indian monopolists, Mr. Saurabh said these companies attack a challenging aspect of a sector. In doing so, they don't address the challenge in a simple manner which would be replicable. They intensify challenges by adding extra layers of difficulties around it. They then keep evolving the challenge and the solution over time to make it difficult for competitors to catch up. Also, the 7 things to do and the 7 things to avoid in terms of building a monopoly were discussed at great length.
"Monopolies as business enjoy consistent success. Monopolists report robust earnings growth year after year. Whether you look at 3 year or 5 year earnings per share patterns, the compounding of Indian monopolists is around 20% mark"
#pmsaifsummit2020 #pmsbazaar #Saurabhmukherjea #pms #aif #Marcellus #ETNOW # #virtualsummit
Subscribe To PMS bazaar For Latest Updates
Social Media Links :-
Twitter - / pmsbazaar
Facebook - / pmsbazaar
Linked in - / pmsba. .
Website - pmsbazaar.com/

[@manishsrivastava1186]

Saurabh sir ji really best advisor for stocks picking...thanks for Amritanjan .

[@acropolis1415]

Amazing wisdom and top class analysis

[@guharup]

Peter Thiel is fantastic. Rare original thinker

[@rajasdoshi6655]

Top class

[@janibaba4722]

Thanks alot for the Wisdom..

[@asheetsinvhal2195]

Amazingg

[@itsover9008]

Please use a better mic.

[@pinnaclefinancial533]

Does this guy has only one word in his vocabulury which is monopoly. Because any video I see all he talks about monopolistic business, monopoly & monopoly and on and on.

[@sanjaypatil5183]

But his stock pick is fantastic ..... Wealth creator.

[@rajat.sharma16]

Yes I also had the same thought but then I realised that it makes sense right. I mean that’s his investment style and philosophy that he shares with all of us freely. Just to sound “different” he can’t start saying something he doesn’t believe in. They are very transparent about it and he mentions several times that he keeps repeating it. Also I think Marcellus is the first PMS which is simplifying investment strategies for the general public. May be it is possible for them because at the heart of it, their investment style itself is on the simpler side.

[@pinnaclefinancial533]

@@rajat.sharma16 well if you look at the global scenario be it US or China . Each country is making more and more difficult for these monopolistic companies via Anti-trust laws whether it is alibaba in China or facebook/ google in US. So instead of repeating one word every time he can share a little different wisdom like ESG theme that is going on and so forth. When I watch great investors videos be it warren buffet , peter lynch & so on. They give you an abudance of different investing idea through their each media appearences. Hence in my opinion he is just too much repetative.