September Update – Fortnight 1

September 15, 2020

We’re proud to hit a significant milestone this month: We have invested over $100,000 since March 2020.

As of today, the return is a stellar growth of over 88% to bring the folio value to $195,000.

Best way to depict this visually is a chart comparing the Australian market vs Tabarruk’s folio.

We beat the market comfortably and continue to widen the gap gradually despite the market being in a flat, sideways pattern.

We’re confident in continuing our growth as the market and sectors we invest in recover over the long term.

The 3 keys to our strategy have been;

  1. Buying quality companies regularly (at least once a month)
  2. Averaging down the ones that trend down
  3. Holding them patiently despite volatility

Purchase entries and watchlist updates for members are at the end of this update.

A round up of what Management in key sectors are saying around the world follows.

CEO Insights

Australian Economy

“We feel that we are very much in the early stages of COVID-19 and its impact on the economy. The longer-term implications…are really yet to play out” 

Rob Scott, CEO, Wesfarmers Ltd

“It is clear that the recovery will take slightly longer and be more uneven than we thought a couple of moths ago, but there are some positive signs now emerging” 

Matt Comyn, CEO, Commonwealth Bank of Australia Ltd

“East Coast [Australian] infrastructure activity remains resilient, being a key lever for governments to accelerate economic activity” 

Market Announcement, Seven Group Holdings Ltd

“The technology industry is a fast-track to Australia’s post-pandemic recovery. It’s a massive force multiplier for jobs and already makes up 6 per cent of our GDP, a number which could be much higher. Doubling down on our investment in innovation now will reward our nation 10-fold into the future” 

Scott Farquhar, Co-CEO, Atlassian Inc

Global Economy

“In seeking to achieve inflation that averages 2% over time, we are [now] not tying ourselves to a particular mathematical formula that defines the average. Thus, our [new] approach could be viewed as a flexible form of average inflation targeting” 

Jerome Powell, Chairman, US Federal Reserve

“Based on what we’ve seen of our customers, as well as observing the whole market growth, the China market is going to be a much faster-growing market in cloud than the U.S. market” 

Jos Tsai, Co-Founder/Vice Chairman, Alibaba Group

“The [Chinese] government has stepped in with some stimulus that we expect is going to create further momentum through to next calendar year so things are looking pretty positive and pretty resilient [for iron ore]” 

Mike Henry, CEO, BHP Group Ltd

“As the benefits from stimulus waned towards the end of the quarter, we saw our comp sales [comparable same store sales] settle into a normal range” 

MarketDoug McMillon, CEO, Walmart Inc 


“Organisations have moved beyond addressing immediate business continuity needs to actively redefining and embracing new approaches to support a future of working anywhere, learning anywhere and connecting anywhere” 

Eric Yuan, CEO, Zoom Video Communications Inc

“Many of the security leaders we spoke with believe that experiencing a breach now, while their business is under extreme stress due to the impact of COVID, would be far more detrimental to their business versus last year” 

George Kurtz, CEO, CrowdStrike Holdings, Inc [multinational cybersecurity technology company]

“PCs have become essential. In the past, we were talking about one PC per home. Now we see the need to have one PC per person. This is going to be driving demand [and] it’s going to be staying with us for a while” 

Enrique Lores, CEO, HP Inc

“The economics now are demonstrating, and we have big customers who’ve shown this, that consistently [moving businesses systems to the cloud] is 30% cheaper than if it’s on-premise” 

EPatrick Gelsinger, CEO, VMWare Inc [NASDAQ listed major cloud computing company]

Advertising & Marketing

“Two things are happening; post-pandemic brand advertising – there’s been some reallocation back to brand – and a consciousness that actually various parts of the economy have performed reasonably well through the pandemic, particularly retail in many areas” 

Hugh Marks, CEO, Nine Entertainment Co

“The worst is behind us in terms of advertising budget cuts [by clients] … The pandemic has caused decades of innovation packed into about four months” 

Mark Read, CEO, WPP plc [world’s largest advertising agency]


“We still see an accelerated adoption of online shopping for all kinds of goods, including groceries” 

Fabian Siefel, CEO, Marley Spoon Ltd

“We still see there’s life in retail and life in shopping centres. In markets that have less impact from COVID we’re still trading strongly” 

Shane Fallscheer, CEO, Lovisa Holdings Ltd

“BigCommerce is participating in one of the largest and fastest transformations in human economic history, the global shift in commerce from offline to online. It took 23 years for e-commerce to go from non-existent to 10% of all global consumer spending in 2017. eMarketer [market research firm] predicts it will take just 6 years for this percentage to more than double to 21% of global retail spending in 2023” 

Brett Bellm, CEO, BigCommerce Holdings Inc [global ecommerce software platform]

“Affordable luxury is a key trend that we’ve seen in all recessions. Consumers want to pamper themselves, despite the difficulties they’re having” 

Noel Wallace, CEO, Colgate-Palmolive Company

“What we’ve seen in the last quarter is that spending in the household category has been very strong, including furniture, homewares, hardware and electrical. In my 26 years of large-format retail experience, I’ve never witnessed anything like this” 

Darren Holland, CEO Aventus Group

“While many people feel more comfortable shopping online than in stores, those that do venture out are much more intentional to make a purchase when they visit” 

Carlos Alberini, CEO, Guess Inc


“The public [hospital] sector doesn’t have the capacity to be able to deal with the backlog of elective surgery without support, so we are there to do that” 

Craig McNaly, CEO, Ramsay Healthcare Ltd

Energy & Resources

“Looking forward, we see a lower carbon technology as being essential. If anything, the changes over the last few months have accelerated the drive towards better, cleaner power solutions. The world is demanding cleaner energy” 

Warren East, CEO, Rolls Royce Holdings Ltd

Transport & Logistics

“Here we are in September and actually, we’ve almost recovered back to the levels we had in global container volumes compared with pre-COVID”

Jeremy Nixon, CEO, Ocean Network Express [global shipping container company]

Travel & Leisure

“We are running around a bit shy of 30 per cent of last year’s activity [for corporate bookings] and Brisbane-Sydney-Melbourne is 45 per cent of last year’s” 

Jamie Pherous, CEO, Corporate Travel Management Ltd

“We expect our large engine flying hours to recover to 90% of the 2019 levels by 2022” 

Warren East, CEO, Rolls Royce Holdings Ltd

“I believe that travel experiences will be even more treasured when this has ended. People will not hesitate to go and see and do the things they have always wanted to do in the newfound knowledge that circumstances can change very rapidly” 

Andrew Burnes, CEO, Helloworld Travel Ltd

“We believe that the demand for out-of-home family entertainment experiences will be stronger than ever once the pandemic has subsided and restrictions have eased” 

Dr Gary Weiss, Chairman, Ardent Leisure Group

“Our biggest takeaway from capturing and analysing industry data was that e-sports is growing exponentially and traditional entertainment and sports organizations have taken notice of the successful esports model” 

Sam Matthews, CEO, Fnatic [global e-sports entertainment company]


“More than ever, our industries require solutions that reduce costs, enhance productivity and deliver sustainable outcomes” 

Ryan Campbell, CFO, Deere & Company

Food & Beverage

“Extraordinary demand [was] caused by the pandemic, driven by a major shift in consumer behavior toward eating at home with a resurgence of cooking simple meals and increased snacking occasions”

“This [health shift due to COVID-19] window is so unique, we’ve got to make the most of it…We all knew there would be a pivot eventually back to healthier recipes, from a little more comfort-oriented initially” 

Alison WaMark Clouse, CEO, Campbell Soup Co

“This [COVID-19] is probably the biggest trial ever in the consumer goods industry and the big question is what is going to happen after the special circumstances the consumer is living in today is going to fade and go back to normal. We’re certainly very happy what we have seen so far” 

Dirk Put, CEO, Mondelez International [food & beverage conglomerate/owner of Cadbury]

Commercial Property

“The Sydney CBD [for example] is in decline in the last 4 weeks by 45% as all the offices are essentially shut. If you talk to most stores that are open, they’re trading about half the levels that they were, and that volume has moved to the suburbs and so we’re seeing growth in suburbs” 

Peter West, Managing Director Australia, Coca-Cola Amatil Ltd

“The retail rental market in Australia is not paused because of the pandemic — it is fundamentally changed for the future” 

Scott Evans, CEO, Mosaic Brands Ltd

Residential Property

“The more impacted part of the economy has tended to be lower-skilled workers, more casual workers and sadly more females, [the] more low-income cohort and therefore that’s disproportionately the renter population as opposed to the homeowner population” 

Shayne Elliot, CEO, ANZ Banking Group Ltd 

“The commercial leasing codes have unleashed a red tape octopus that has meant that by mid-August, only one in four dollars of rent relief provisioned by landlords has so far been provided to their tenants in finalised agreements” 

ShKen Morrison, CEO, Property Council of Australia


“Semiconductors and software are really the future of cars. That’s the way to think about it. All of the intelligence — the whole bedrock of what’s in the car in terms of the user experience, the intelligence, the driving experience – that is all being, if you like, enabled by semiconductors and software these days” 

Vincent Roche, CEO, Analog Devices Inc [global semiconductor chip manufacturer]

“The scale of the supply shortages differs among brands and it differs among models, but many dealers are still reporting shortages and delays” 

James Voortman, CEO, Australian Automotive Dealer Association (AADA)

“The scale of the supply shortages differs among brands and it differs “Demand has stabilised. In China we saw a V-shaped recovery. That’s not the case in Europe and North America but we have rebounded from the freefall” 

Ola Källenius, CEO, Daimler AG [Mercedes-Benz parent company]


“Labour has been the biggest issue through COVID. A lot of the work is done by backpackers and there are normally about 170,000 backpackers around and currently there are about 70,000, so getting workers is going to be an issue” 

David Schwartz, CEO, Vitalharvest Trust [owner of Costa Group farmland assets]

Members only updates follow below with purchase entries and company updates.

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