- Hardcover: 454 pages
- Publisher: Penguin; Latest edition (17 August 2016)
- Language: English
- ISBN-10: 9780670089253
- ISBN-13: 978-0670089253
- ASIN: 0670089257
- Product Dimensions: 23 x 5 x 15 cm
- Average Customer Review: 135 customer reviews
- Amazon Bestsellers Rank: #56,134 in Books (See Top 100 in Books)
The Unusual Billionaires Hardcover – 17 Aug 2016
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‘Mukherjea’s book is insightful and makes for easy reading.’ Financial Express ‘Books that are able to describe successful businesses through a common theme or analytical framework are rare in India. This one is an addition to that small collection.’ Money Life ‘The book does not just list the winning pack, but also traces the history of these companies and very methodically looks at various metrics to prove why they are the winners.’ Hindu Business Line ‘An insightful – and reassuring – exposition of how steady good sense can consistently beat the unsteady Sensex.’ Rama Bijapurkar, author and management consultant ‘Saurabh’s book highlights that the recipe for outstanding corporate results hinges on old-fashioned values.’ Ashoka Wadhwa, group CEO, Ambit Holdings ‘Saurabh Mukherjea describes incisively how some great Indian companies have achieved corporate success and made a great deal of money for investors along the way.’ John Kay, professor of economics, London School of Economics
About the Author
Saurabh Mukherjea is the CEO of Institutional Equities for Ambit Capital, an Indian investment bank. In 2014 and 2015, he was rated as the leading equity strategist in India by the Asiamoney polls. Mukherjea has spent most of the past decade trying to construct and implement systematic methods for analysing Indian companies in the midst of the chaos that surrounds the Indian stock market. A London School of Economics alumnus, Mukherjea is also a CFA charter holder. He lives in Mumbai with his wife and two children.
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90% of the book is about some successful business, how they became successful, however if you think you will gain some knowledge about stock market then you are WRONG.
There are many books available in market about successful businessman and businesses just buy them at low price and buy separate books to learn stock market.
The summary of the book is: find stocks with constant growing ROCE and revenue growth from last 5-10 years. Thats ALL. Book is over.
Don't buy this costly book.
We see lot of books on US companies, how it grow and all, these the book written on Indian companies it connects well to the especially Indian Investors.
Superior Financial Performance over a long period of time
Over a long period of time, financial performance is the best reflection of a company’s business stagey. The temporary short duration performance or underperformance i.e. change from one quarterly result to another is not that significant. Great companies sustain superior financial performance for a long period of time. They can endure difficult economic conditions. Their management teams have strategies that deliver results better than their competitors.
10% Revenue Growth & 15% Return on Capital Employed
The filter that Saurabh Mukherjea used to identify and do further research is consistent corporate performance i.e. growing with 10% revenue growth and 15% return on capital employed (ROCE) for every consecutive year over the past decade i.e. 2000-2015-time period. In case of banking and financial services company, the filter used is Return on Equity of 15% and loan book growth of 15%. Over 99% of the publically listed Indian companies fail to fulfill this this filter over the past decade.
The companies that satisfied the results are Asian Paints, Astral Poly, Berger Paints, ITC, Marico, Page Industries, HDFC Bank Limited, Axis Bank Limited. The book is enriched with anecdotes, strategies of these unusual companies, the multi-decadal evolution of these great companies and how they have created sustainable competitive advantage. The author has done extensive research on these companies, getting insights about the management strategy from current management to past management, promoters, distributors, customers of the company.
“Persistence is what makes the impossible possible, the possible likely, and the likely definite.” Robert Half
Common theme of these great companies
The common theme of these companies are
The management team is focused on the core franchise and the business instead of being distracted by short-term gambles outside the core segment.
The management team is relentlessly focused on deepening its competitive moat over time.
The management/board is sensible about capital allocation. If the cash cannot be deployed to good effect by the company in growth or diversification in related business, its more sensible to distribute it to shareholders.
These businesses are not run like a typical promoter mentality of centralizing power and wealth in his or his relatives hand. These businesses are run in a professional meritocratic way with long term value creation in their approach.
The focus on running a business efficiently, creating and sustaining competitive advantages, and prudent capital allocation lie at the heart of these winning companies. It’s important for the promoters & management to focus on core business or if there is a long term potential diversify on related business rather than an unrelated business. The short term gambles quite often result into a distraction from the core business, and it also adversely impacts the Return on Capital Employed (ROCE).
“Strategy is about making smart choices and execution is about relentless implementation.” Phil Rosenzweig
The Unusual Billionaires by Saurabh Mukherjea is an insightful book filled with tons of management lessons in terms of effectively managing business, and perspective to analyze business in terms of investment. The filters and systematic approach described in the book to understand business is pretty useful.
After reading this one will easily understand the power of CONSISTENCY.