Introduction
About the book
This book 'The unusual billionaires' by Saurabh Mukherjea (author) gives you a perspective on how to identify great companies that are to be held forever. The author uses his coffee can screening mechanism and finds a list of 7 companies in the year 2016. Those companies were earning a ROCE higher than 15% and sales growth higher than 10% CAGR over the last ten years. These companies, on average, have delivered 28% CAGR over the last ten years compared to Sensex's CAGR of 14%. Through this book, he has identified three themes in the philosophy of the company/management that, according to him, are common traits for wealth creation:
- Focus on the long term without being distracted by short term gambles.
- Constantly deepen the moat around the core franchise
- Sensibly allocate capital whilst studiously avoiding betting the balance sheet on expensive and unrelated forays.
You need to concentrate on these themes while analysing a company, along with a checklist present at the end of the book summary.
About the author
Saurabh Mukherjea is a bestselling author and the founder and CIO of Marcellus Investment Managers. Previously, he was the CEO of Ambit Capital, an Indian investment bank. He was rated the leading equity strategist in India in polls conducted by Asiamoney in 2014, 2015 and 2016. A London School of Economics alumnus, Mukherjea, is also a CFA charter holder. He has authored five books till now.
Buy the book
The book teaches you how you can identify quality stocks for your investments that will help you generate enormous wealth over the long term. We highly recommend you to read the entire book.
