Great write up =) Happy to see you share same sentiment that it's still a worthwhile purchase at current levels and that one should DCA into it. I also covered it sometime ago in below link when it was trading higher and I'm glad for the chance to scoop at lower now. Cheers.
Thank you! For now, I don't see autonomous as any sort of game changer for Copart. For now, I expect no changes in total loss frequency; if anything, the higher complexity of the cars will make repairs even more expensive and total losses even higher.
Could autonomous vehicles eventually lead to fewer accidents? Definitely, but that is still decades away (need for higher penetration and better infrastructure). For now, I actually would view it as a positive, if anything.
Nice writeup on $CPRT as I feel you hit the nail on the head regarding its advantages. Obviously, at > 30X earnings, the stock is not cheap in an absolute sense. If there's nothing wrong with the moat, this could provide a nice setup to take advantage of weakness in the stock price where there is nothing wrong with the business.
You are welcome. We do need to monitor the revenue growth of IAA (via $RBA) but at the moment their volume growth may be attributable to one-off things. The only risk in this thesis is that $CPRT market share via insurance has hit its high-point and that they will be losing share to IAA (via $RBA). It's possible, but something to keep an eye out for. Again, really great writeup on this name.
Great write up =) Happy to see you share same sentiment that it's still a worthwhile purchase at current levels and that one should DCA into it. I also covered it sometime ago in below link when it was trading higher and I'm glad for the chance to scoop at lower now. Cheers.
https://thefinancialpen.substack.com/p/on-watch-a-structural-winner-in-the
Great article 👍 Any opinions on the potential impact of Autonomous vehicle growth to CPRT future business?
Thank you! For now, I don't see autonomous as any sort of game changer for Copart. For now, I expect no changes in total loss frequency; if anything, the higher complexity of the cars will make repairs even more expensive and total losses even higher.
Could autonomous vehicles eventually lead to fewer accidents? Definitely, but that is still decades away (need for higher penetration and better infrastructure). For now, I actually would view it as a positive, if anything.
Nice writeup on $CPRT as I feel you hit the nail on the head regarding its advantages. Obviously, at > 30X earnings, the stock is not cheap in an absolute sense. If there's nothing wrong with the moat, this could provide a nice setup to take advantage of weakness in the stock price where there is nothing wrong with the business.
Exactly! And thank you!
You are welcome. We do need to monitor the revenue growth of IAA (via $RBA) but at the moment their volume growth may be attributable to one-off things. The only risk in this thesis is that $CPRT market share via insurance has hit its high-point and that they will be losing share to IAA (via $RBA). It's possible, but something to keep an eye out for. Again, really great writeup on this name.
Those are some valuable thoughts. I agree!
I bought my first shares recently as I believe this compounder will rebound sooner or later.
Agreed. Good buy.