Hello everyone, welcome to The India Opportunity Show where you get a front-row seat to people building India’s future. We talk about unlocking the potential of the country with founders, investors, creators, and successful leaders from different fields to bring you real-life stories and behind-the-scenes of what it takes to be at the forefront of building the India Story.
Episode 13, Season 4 of The India Opportunity Show is out now! You can watch it on YouTube or listen on Spotify or Apple Podcasts.
Few investors in India have built as distinctive an investing philosophy or sparked as much debate as Saurabh Mukherjea.
Saurabh is the Founder of Marcellus Investment Managers and the author of several bestselling books on investing, including Coffee Can Investing and Diamonds in the Dust. Over the years, he has become one of the most prominent advocates of investing in high-quality businesses capable of compounding over long periods.
But the last few years have tested that philosophy.
In this episode of The India Opportunity Show, I sat down with Saurabh for a candid conversation about what happens when markets challenge your assumptions.
We discuss Marcellus’ period of underperformance, how his investment thinking has evolved, whether India’s best-known quality companies can continue compounding, and how he separates temporary setbacks from structural deterioration.
We also get into two questions that could define the next decade of investing: what AI means for India’s IT services industry, and why Indian investors may need to start looking beyond India when building their portfolios.
What I appreciated most about this conversation was the willingness to revisit old assumptions. Markets have a way of humbling everyone, and sometimes the most valuable investing lessons come from understanding what didn’t work.
Key Takeaways
1. Even the strongest investment frameworks need to evolve.
Saurabh reflects candidly on recent underperformance, the mistakes made along the way and what Marcellus has changed as a result.
2. A great company isn’t automatically a great investment.
Quality matters, but so do valuation, competitive dynamics and whether the underlying opportunity has structurally changed.
3. “New-age” companies don’t necessarily require new investing rules.
Business models may evolve, but Saurabh argues that fundamentals such as cash flows, competitive advantages and the ability to compound capital remain critical.
4. AI could reshape the Indian IT services model.
We explore whether AI becomes another productivity tailwind for Indian IT or forces a deeper rethink of how the sector creates value.
5. Indian investors have significant home-country concentration.
Saurabh makes the case for global diversification and explains why an investor can remain optimistic about India while still owning assets outside the country.
6. Surviving matters as much as being right.
Market crashes and periods of underperformance are inevitable. Portfolio construction, discipline and the ability to learn from mistakes determine whether an investor gets to stay in the game.
Chapters
00:00 | Introduction
01:54 | Contrarian Market Beliefs
02:53 | The Bear Case for India
05:00 | Reflecting on Underperformance
16:40 | Evolving the Portfolio
25:19 | Managing Client Expectations
28:54 | Structural Headwinds vs. Turnarounds
42:33 | New-Age Companies & AI
49:18 | The Case for Global Diversification
59:54 | Rapid Fire Questions
If you invest in Indian equities, this is a conversation about more than where markets go next. It’s about how an investor adapts when the market proves that some of their assumptions were wrong.
Watch the full episode of The India Opportunity Show with Saurabh Mukherjea.
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Disclaimer: The content presented in this podcast is for informational purposes only and should not be considered financial advice. Viewers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions.