About Saurabh Mukherjea

Saurabh Mukherjea is one of the top investing gurus in India.

He is famous for predicting bearish trends in the market. He is also known for picking stocks that have huge long term potential.

He shifted to London when he was fourteen years old. He has a Bachelor of Science (BSc) in Economics with first class honours. He also has a Master of Science (MSc) in Economics with distinction in macro and microeconomics.

Saurabh Mukherjea is also a fellow of the Royal Society of Arts.

Having established a successful career in London, he returned to India in 2008. He joined Ambit Capital and within two years, he became the company's CEO in 2010.

In 2018, he started his own PMS firm that earned him fame in the Indian stock market community: Marcellus Investment Managers. He is also one of the chief investment officers at this firm.

Mukherjea is a regular on various business news channels.

He talks about his investment philosophy in his book 'Coffee Can Investing'. He has also authored the books titled  'The Unusual Billionaires', 'The Victory Project - Six Steps to Peak Potential', and 'Gurus of Chaos: Modern India's Money Masters'.

Saurabh Mukherjea's investment philosophy

Saurabh Mukherjea is popularly known for his coffee can investment approach. Investing your money in fundamentally strong companies and holding them for several years increases the chance of you raking in all the moolah.

For instance, a sum of Rs 100,000 invested in Asian Paints in 1991 would have turned into Rs 860 million by 2021.That's the power of compounding.

The strategy of coffee can investing is straightforward. Investors pick a group of high-quality companies with a proven track record of generating consistent profits and revenue growth.

The chosen stocks are held for an extended period, irrespective of market conditions or short-term fluctuations. This strategy allows investors to avoid the temptation of selling their holdings during short-term market volatility, which can lead to missed opportunities for long-term gains

Primarily, it is suitable for passive investors with an investment horizon of more than a decade.

The term 'coffee can' originates from a traditional way of saving, where people would put money in an empty coffee can and forget about it for years until they needed the money urgently.

Marcellus' Consistent Compounders PMS invests in a concentrated portfolio of heavily moated companies that can drive healthy earnings growth over long periods of time.

This indicates the fund is based on the refined 'Coffee Can Investing' strategy of Marcellus.

Saurabh Mukherjea's top stock picks and his portfolio

Saurabh Mukherjea mostly makes his investments through his firm Marcellus Investment Managers.

The investment firm divides its portfolio into different categories:

• Consistent Compounders and Rising Giants: It is the flagship portfolio management service (PMS) product that invests in companies with clean accounts, superior record of capital allocation and high barriers to entry.
• Little Champs: This is a small-cap strategy of the firm that invests in companies with excellent corporate governance and capital allocation track record and strong sustainable competitive advantages.
• Kings of Capital: This is financial sector focused investment strategy with a portfolio banks, NBFCs, life and general insurers, asset managers and brokers.

According to a note by Marcellus Investment Managers, the Little Champs portfolio of the firm has preponderance of niche B2B names. Some of the top picks of Little Champs are Alkyl Almines, Fine Organic Industries, Galaxy Surfactancts, Garware Technical Fibres, GMM Pfaudler, Paushak, Tarsons Products, Mold-Tek Packaging, Suprajit Engineering, Ultramarine & Pigments.

In an interview, Saurabh Mukherjea has said that HDFC Bank, TCS and Titan have the potential to become trillion-dollar companies in the coming decade.

Since inception, the PMS fund has generated decent returns for its clients.

Most of the past gains have come from 5 stocks including Bajaj Finance, Asian Paints, Relaxo, Pidilite and Dr Lal Pathlabs.

Bajaj Finance and Asian Paints are the two stocks with biggest allocations in the portfolio.

Saurabh Mukherjea believes that the stock prices of even the highest quality franchises tend to go through short term gyrations as a result of a prevailing short term narrative or extrapolation of short-term weakness in business.

Giving the example of Bajaj Finance, the fund manager said "when the stock price almost halved between January 2020-April 2020 leading to a decline in its portfolio weight, his team rebalanced the portfolio by increasing the weight of the stock. By December 2020, the stock had recovered nicely and delivered 128% returns with the overall portfolio benefiting immensely from the higher weight."

For more details, check out Saurabh Mukherjea's portfolio and his top 5 stocks.

In Conclusion

Everyone who starts investing in stock markets dreams of earning a fortune. But only a handful of investors make huge efforts to earn the big bucks. In his book Coffee Can Investing, Mukherjea says,

• "Some people want it to happen, some wish it would happen, others make it happen."

Well, Saurabh Mukherjea is definitely one of those people who made it happen! He has earned a big name for himself in the Indian stock markets through his unique and consistent approach.

He believes that the crux of outsized success is first to specialise. Specialisation leads to simplification.

Combine the simplification with a degree of creativity, work and collaborate with a group of talented individuals and you have the recipe for mind blowing success and you are doing full justice to yourself and your own potential.

He also believes persistence is the key. In his other book titled The Unusual Billionaires he says,

• "Persistence is what makes the impossible possible, the possible likely, and the likely definite."

Before you leave, we recommend you to take a look at the below podcast video where Mukherjea reveals details of one of his biggest investment calls till -date, how it changed everything, and more.

Happy Investing!

Here's a list of articles and videos on Saurabh Mukherjea stocks. This is a great starting point for anyone who is looking to explore and learn about the stocks that he has in his portfolio.