I have used my wife’s shopping views as a guide on retail from...

I have used my wife’s shopping views as a guide on retail from time to time too, most particularly WOW rather than Coles for years and then switched as she did soon after WES bought Coles, and improved it, which was a great pairs trade for me. On the Kogan, anecdotally my friends (and me)are increasingly buying from them, which is why I stepped in, and while buying power and distributional ability and advertising are costwise theoretically to the advantage of the Amazons of this world, the internet allows smart marketing to really flourish, and tightly run businesses can achieve huge scale advantages quickly. Its currently my only retail holding, and while Industry Super may have taken the view it is currently expensive, I didnt buy Amazon or Microsoft on listing because they were too expensive...and look at them now. If Kogan goes on with it, it could become much bigger than we can probably now imagine, and small margins are fine when you have massively growing individual sales and a relatively fixed cost base apart from the freight thats passed on anyway. They will need to remain nimble, alert and adapt to threats and opportunities, which many store based retailers have failed to do, but the reason they are where they are now is a testament to that entrepreneurial style. I saw the selldown as purely a step towards building an insto base and widening liquidity, which every tightly controlled listed company must do (except for News Corp) as it develops. So I added at this level and have been wrong about a quick rebound, but very comfortable with the holding back down at this value, and still adding as and when other maturing trades allow. (Not too many recently!)