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Copart: A Stock to Watch for in the Long Run
The market is currently pricing in earnings growth of around 13 to 14% over that 5 year period. If you're a long term buying a hold investor then today's price is probably a fair price. Since they're in the junkyard industry it's just not a sexy business. So simply because of that it probably won't get a lot of attention from everyday retail investors.
On today’s episode, Clay Finck does analysis on two high-quality compounders – Topicus.com and Copart. Topicus.com is a spin off of Constellation Software and is at a size similar to what CSI was back in 2010. They provide vertical market software and vertical market platforms in Europe. Copart provides online auctions and vehicle remarketing services in the United States, Canada, and many other countries.
Both companies have strong competitive advantages, strong fundamentals, high insider ownership, and managers who think and act like owners, which led Clay to researching them further during this episode.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro.
02:05 - Clay’s biggest takeaways from reading 100 Baggers by Chris Mayer.
07:00 - Chuck Akre’s 3 legged stool approach to compounding wealth.
09:00 - Clay’s assessment of Topicus as an individual stock.
08:00 - Topicus’s history as a business.
10:00 - Why Topicus operating in Europe is potentially a big competitive advantage.
29:00 - Why Copart is well-positioned to prevent competition from taking their market share.
47:00 - Copart’s insider ownership.
54:00 - Potential risks for Topicus and Copart.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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