July Folio Update – Week 3

July 17, 2020

A slow, flattish week overall. The market is treating the 6000 mark like a magnet.

We’ve taken the opportunity to buy more shares in companies we already have positions in to bring our average purchase price down. We talk more about this strategy in our member only article: The secret to buying at the bottom.

We plan to continue doing this alongside new purchases, whenever we see prices falling and if none of the major fundamentals change in these companies.

CEO quotes


“With respect to the health care industry, we are encouraged to see many procedures starting to return versus what we saw in the back half of the first quarter across the globe”

Joseph Wolk, CFO, Johnson & Johnson Inc

“As vaccines become available, we would anticipate continued surveillance testing to monitor and assess for both natural and vaccine-related immune response, which would be followed by a steady state of ongoing monitoring and tracking of vaccine protection. Looking across the spectrum, it’s clear that the need for testing is large and it isn’t going away”

Robert Ford, CEO, Abbott Laboratories Inc


“I think e-commerce, if you see the growth of e-commerce, it is going to be quite strategic. I think whoever wins in e-commerce now and is able to capture those families that are trying this e-grocery service for the first time I think is going to win those families in the future”

Ramon Laguarta, CEO, PepsiCo Inc

“This [pandemic] will lead to a permanent shift away from regular retail to online retail to some extent”

Anthony Pratt, Executive Chairman, Visy Industries


“There is a lot of discussions [with clients] on cost efficiency and automation, we [also] have discussions on cyber security and workplace transformation”

Salil Parekh, CEO, Infosys Ltd [top tier multinational consulting firm]

Travel & Leisure

“We have substantial new bookings, and we even have new to cruise bookings, which given the current state of the environment in the world is really a good testament to how strong a vacation experience and value cruising really is”

Arnold Donald, CEO, Carnival Corp


“TikTok’s growth is astounding, showing the fluidity of internet entertainment. Instead of worrying about all these competitors, we continue to stick to our strategy of trying to improve our service and content every quarter faster than our peers. Our continued strong growth is a testament to this approach and the size of the entertainment market. Growth [in streaming demand] is slowing as consumers get through the initial shock of Covid and social restrictions”

Reed Hastings, CEO, Netflix Inc

Food & Beverage

“Are consumers meaningfully changing some of their needs? I would say, there are few spaces where we’re trying to move quickly, immunity [beverages] being one, and we’re seeing that consumers are looking for immunity more. Our juice business is booming”

Ramon Laguarta, CEO, PepsiCo Inc


Aluminium demand is starting to show some signs of recovery based on monthly data for some key end use sectors, particularly in China. For example, Chinese passenger vehicle production was up more than 11% in both May and June when compared with the same months last year. The most recent data on construction activities in China are also better than the monthly levels in May of 2019” 

Roy Harvey, CEO, Alcoa Corporation [global aluminium producer]


“We are positioning to take advantage of a forecast global LNG supply shortfall later this decade”

Peter Coleman, CEO, Woodside Ltd


“I’d say the basket size is significantly higher for home delivery [vs. in-store]. And so far we’re seeing it being very complimentary to our typical patterns [of trading]”

Brian Hannasch, CEO, Alimentation Couche-Tard Inc. [world’s second largest convenience store chain]

Transport & Logistics

“Every day may kind of bounce up and down a couple of percentage points, but the overall trend [in travel volumes] is an unmistakably positive trend. When I translate that to globally, that trend is absolutely positive on a week-on-week basis”

Dara Khosrowshahi, CEO, Uber Inc

Payments and Lending

“The difficulty for everyone is there is some uncertainty, we hear that a lot from customers. That’s probably been the dominant theme in the repayment check-ins… they still want the flexibility because they are not quite sure what is around the corner”

Matt Comyn, CEO, Commonwealth Bank of Australia Ltd

US Economy

“This is not a normal recession… the consumers’ incomes are up, savings are up, and home prices up. The recessionary part will come later”

Jamie Dimon, CEO, JP Morgan Chase & Co

Read on for a local update followed by purchase entries for this week.

COVID update

Melbourne Metro continues it’s 6 week lockdown. Today has been the all time highest in terms of new cases recorded in Victoria, over 400. There are talks of a stage 4 lockdown.

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