Yet Another Value Podcast

Andrew Wagner on Copart (CPRT)

Apr 18, 2022

53:02

Creator website

Highlights

AI Chapters

Episode notes

Co-Part Owns the Arts Instead of Leasing Themselves

02:13

Is Copart's Proxies a Compounder Bro Porn?

01:50

Covid

03:04

Introduction

2min

The Sleuth Investor

2min

What I Learned From Doing This

2min

Copart

2min

Is Copart's Proxies a Compounder Bro Porn?

2min

What's Driving Copart and IAA's Benefits to Scale?

2min

Is It a Traditional Marketplace Business?

3min

The Network Effect Is Working Like Any Other Network Effect Type of Business

3min

Is the Management Team Buying Shares Back?

3min

10.

Is It Better to Buy Back the Stock?

2min

11.

Is Berkshire Hathaway Not Buying Back Shares?

2min

12.

The Difference Between Co-Part and IAA

2min

13.

Co-Part Owns the Arts Instead of Leasing Themselves

2min

14.

Is There a Second Landfill Nearby?

2min

15.

Coparts - How Much Would That Be Covered by the Land?

3min

16.

Co Part

3min

17.

Is the European Market Not as Profitable as the US Market?

3min

18.

Are You Talking About Getting Into Used Cars?

2min

19.

Is Rolls Royce Trashed, but I Can Get It at a Discount?

2min

20.

Is Your Total Loss Frequency Going Up?

2min

21.

Is the Electric Vehicle Scrap Market Going to Get More Profitable Left Struggles?

2min

22.

The Electric Car Market Is Still Around 2% Right Now

3min

23.

Covid

3min

Andrew Wagner, CIO of Wagner Road Capital Management, discusses his thesis on Copart (CPRT).

My Copart (CPRT) notes; https://twitter.com/YetAnotherValue/status/1514627334464323589?s=20&t=yjNrQXKvqPrQdJZ_Z00Tdw
Andrew's post on Copart: https://www.wagnerroadcm.com/blog/2022/4/8/what-i-like-about-copart-and-how-i-found-it
Andrew's Book: The Economics of Online Games: https://amzn.to/3KNkAPn

Chapters
0:00 Intro
2:05 How Andrew found CPRT
5:30 What is the market missing in CPRT?
9:20 What does CPRT do?
11:00 What is CPRT's moat?
13:25 Does CPRT's network advantages give them an edge in expansion?
15:00 Bear case #1: Valuation
16:30 Bear case #2: COVID earnings boost
18:50 Bear case #3: Why isn't CPRT buying back shares?
23:30 Why is CPRT so much better than IAA?
25:30 CPRT's management
27:45 CPRT's land ownership
33:15 CPRT's international operations
35:20 Does CPRT's moat travel internationally?
38:55 Ancillary services opportunity
43:15 CPRT's long term tailwinds from "totaled" cars
47:00 Do EVs change CPRT's economics?
49:30 Car ownership trends and CPRT