Late Chief Minister of Tamil Nadu C.N.Annadurai wrote a book titled Maji Kadavulgal (மாஜி கடவுள்கள்), which talked about extinct gods from Greek mythology. There is also a popular book ‘God Against the Gods: The History of the War Between Monotheism and Polytheism’ that talks about one popular religion or god eventually conquering a wide range of gods and beliefs.
I am reminded of these two books in connection with a popular comedy sequence splayed by legendary actor Goundamani in the movie Udhaya Geetham. Coming out of prison, he would become a guruji beneath a tree and make good collection from his bhakths. Thrilled by the reception and popular support, he would open branches in many trees across the city.
While selecting a stock for investment, we should always looks for the inherent qualities of the company to scale up. Think about Mcdonald’s, Dominos, HDFC bank, Reliance, Asian Paints, Titans etc.
They have successfully replicated the success across regions. Over the years they have demonstrated that they are capable of scaling up at the expense of smaller and weaker players in their respective industries.
Consolidation is a natural thing bound to happen in any business. Larger players have the economies of scales to distribute the cost over large volume. They can invest ib modern technologies, process and best practices. They think ahead of time and literary kill the competition.
In the stock market workshop we conduct, I tend to quote Goundamani’s comedy sequence to be able to quickly connect with real life example.
My recommendation is to start studying the proliferation of gods and religions first, if you want to master the art of identifying successful scalable business models.
People say Jewish business leaders create scalable businesses. Larry Page of Google, Bill Gates of Microsoft, Mark Zuckerberg Facebook are some of recent Jewish entrepreneurs who created such mammoth institutions. One has to count Jesus Christ as well.