What I learnt from Saurabh Mukherjea’s LLA podcast?

Who is Saurabh Mukherjee? Saurabh Mukherjea is chief investment officer and founder of Marcellus Investment Managers. Both a BSc and an MSc in Economics were obtained by Saurabh at the London School of Economics. In 2007, the Extel Survey ranked Saurabh as among the best small-cap analysts throughout the UK.

He was a co-founder of Clear Capital in London. The Asiamoney polls ranked Saurabh as India’s top equities strategist in the years 2015, 2016 and 2017. Saurabh served as the CEO of Ambit Capital prior to founding Marcellus. A trade organization called the Association of Portfolio Managers in India was founded by Saurabh. Needless to say, the man is very intelligent and can share valuable insights when it comes to financing.

About LLA

A YouTube channel called Labour Law Advisor, or LLA, was created in 2017. Our goal was to make labour rules more accessible to the average person. With almost a million members, the channel has developed into a one-stop shop for programming relating to business, finance, investing, and labour legislation.

They have a solid core staff that includes Chartered Accountants, Experienced Advocates, and Technocrats. Working with 500+ firms has given them the experience necessary to convey complicated ideas in an understandable manner.

Jagrut Talks – Podcast by LLA

Jagrut Talks is a podcast by LLA hosted by Mandeep Gill.

About this episode!

This has been 4th episode of the second season of Jagrut Talks featuring Sourabh Mukherjea who shares his knowledge, advice and insights in the realm of investing with Mandeep Gill. This episode is called “Finding Monopoly Stocks ft. Sourabh Mukherjea”.

In this episode, I learnt a lot and I will be taking you through the wisdom shared by Sourabh Mukherjea.

No place for rigidity for Sourabh

There is no place for rigidity for Saurabh.  With his diverse upbringing and his parents working in different endeavours, he learnt from the start that there is no place for rigidity. What pushes one is the hunger to learn.

He believes that the generation of his parents involved constant struggle and life was about to take fewer risks. In current generations, there are ample resources and there is no need for having a fear of taking low risks. 

Who should not invest in stock market?

As per Saurabh, those people who can’t stay patient and struggle with patience should not try investing by themselves. Try giving money to someone who can take care of it. Generating results of investments requires patience. Avoid the stock market as investing is less about intelligence, and more about patience so these people can try fixed deposits and bond funds.

The downside of consuming free and accessible content over social media

Sourabh also shares the downside of content which is free and accessible on social media. It brings more ways to waste time, killing 3-4 hours easily. The ability to focus on high-quality content and focus for a longer span becomes a superpower instead of wasting it on sending texts over WhatsApp.

Importance of discipline in stock investing

Mandeep also shares insight that we don’t make conscious decisions that easily, to that Sourabh adds the ability to discipline yourself and train yourself is important to develop. Funny enough, Sourabh can’t imagine how can someone watch a movie. Bizarre! However, the man would pick a podcast over a movie any day!

Sourabh also shares that any individual working in Marcellus, going via plane would prefer to read books or listen to podcasts than watch a movie. He also talks about the importance of having the right and good influential people around you.

Mandeep ponders over investing styles especially the coffee can investing style. Sourabh recommends a book called “Unusual Billionaires” which helps in compounding at a rapid rate.

Can government reforms crush or help a company flourish?

The next issue that Mandeep talks about is that sometimes government reforms can either crush or help a company flourish, so is it important to focus on the larger picture? Sourabh discusses that the answer is both yes and no.

Mandeep shares an example of how Jio internet flourished in 2016 so did Sourabh foresee the growth of companies in 2016? Sourabh talks about the government reforms that happened that year. And when government reforms take place, usually bigger players will have an upper hand over small-scale players.

How to identify monopolies in stock market? 

Mandeep asks Sourabh to share light on how to identify national monopolies and monopoly stocks. Sourabh shares whenever the company’s ROC is over 25, 30 or over 50. Monopolies that charge 20-50% more price on their goods or services are working on a larger scale. For instance, Apple’s ROC is around 25% and passionate Apple fans would never choose Android.

Advice for those who want to invest in stock market

Sourabh also shares that those who cannot afford Marcellus can try to afford a tracker fund. People who want to invest should not sprinkle their income everywhere but first, focus on building a rainy day fun that may help you in case you go through a sudden calamity or financial crisis. He himself has a rainy day fund of around 3 years with his wife.

Advice for retiring individuals

Sourabh also shares advice for those who retire to not take out all their money for retirement. He suggests that since the life span is around 85 these days and retirement happens at 60 so the person would still need to compound for 25 years. He suggests taking money only as needed for lifestyle and the rest must be focused on compounding.

Relationship between happiness and money-making

Mandeep also talks about happiness and money-making with Sourabh. On that topic, Sourabh shares that there is sadly not much correlation between happiness and becoming richer. Being poor is very tough and during the middle-class section, the correlation even breaks further down. Sourabh also shares that people who are crazy rich and are worth billions are least concerned about their wealth, they’re happier and their hunger to learn is huge. Since he believes people who don’t care about money are happier.

Advice for salaried people

Mandeep asks Sourabh to share advice for salaried people that would be very helpful to them. Sourabh answers that the world treats people kindly if they make effort to understand the world. The more your thinking is unrealistic and have paranoia and fears, the more difficult it gets to make money or do something in life, whereas the more realistic you are, the easier your life will get.

Sourabh’s Guilty Pleasure – Where does he like to spend money?

In the end, Mandeep wonders about Sourabh’s guilty pleasure, and Sourabh talks about travelling. His family spends on travelling and also donates to charities and non-profits. 

Conclusion

Overall, this podcast has been extremely enriching and insightful to financial fundas! Anyone who wants to begin learning about personal finances should definitely listen to this podcast as a lot of crucial concepts such as the importance of discipline, the correlation between happiness and money-making, how to start investing and everything in between have been discussed. Don’t miss out!

Article credit: Sonali

Author: Sanjib SahaSanjib is a finance based writer who has a deep knowledge in stock market, cryptocurrency and mutual funds. He is also a co-founder of Financesrule.com

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