In this episode of Yet Another Value Podcast, host Andrew Walker welcomes back Cliff Sosin of CAS Investment Partners for his second appearance. Known for his concentrated, long-term investing approach, Cliff discusses the unique characteristics of Carvana's lending model, the intricacies of subprime finance, and why he believes Carvana's comeback story deserves a closer look. The conversation explores Cliff's investment philosophy, alternative data use, and risk management, while diving deep into market misconceptions around subprime lending, inventory valuation, and self-driving cars. Tune in for a data-rich breakdown of one of the market's most discussed turnarounds.
Links:
YAVP with Aaron Chan on CVNA: https://www.yetanothervalueblog.com/p/recurve-capitals-aaron-chan-on-the
CAS Investment Partners - https://www.casinvestmentpartners.com/
Yet Another Value Blog - https://www.yetanothervalueblog.com
See our legal disclaimer here: https://www.yetanothervalueblog.com/p/legal-and-disclaimer
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[00:00] Intro to the podcast and guest, Cliff Sosin
[01:38] Cliff on his podcast return
[00:02:11] Cliff reflects on past public exposure
[00:05:26] Cliff’s focus in subprime and securitizations
[00:12:17] Carvana’s lending model and performance vs peers
[00:24:29] Alt data, trading signals, and Carvana
[00:30:58] Evolution of Carvana’s operational resilience
[00:34:03] What keeps Cliff up at night about Carvana
[00:38:11] Risks from used car market decline
[00:40:08] Potential disruption from low-cost EVs
[00:47:00] Threat of autonomous vehicles
[01:01:50] Stanford, Google, and Carvana
[01:10:10] Tail Risks
[01:13:00] Getting better with expert networks
[01:18:00] My trite Cliff saying
[01:19:00] What is Cliff researching now
