Yet Another Value Podcast Cliff Sosin from CAS on Carvana and a bunch of other stuff $CVNA
13 snips
May 8, 2025 
Cliff Sosin of CAS Investment Partners, known for his focused long-term investment style, returns for a compelling discussion. He delves into Carvana's distinctive lending model and the intricacies of subprime finance, revealing misconceptions and opportunities in this sector. The conversation also highlights the impact of alternative data on investment decisions and explores Carvana's operational resilience amidst market challenges. Additionally, Cliff tackles the future of used cars in the age of self-driving technology, making a case for why the traditional ownership model might endure.
AI Snips
Chapters
Transcript
Episode notes
Noble Complexity of Subprime Lending
- Subprime lending requires skill to identify worthy borrowers discarded by prime lenders and manage behavioral risks.
- This business can be noble and profitable but is often misunderstood and avoided due to complexity and past crises.
Why Carvana Loans Outperform
- Carvana's loans perform better than average due to vertical integration, efficient online verification, and better car quality.
- Lower default losses stem from lower prices, higher down payments, and improved customer treatment.
Use Alt Data to Confirm Themes
- Use alt data to validate broader hypotheses rather than predict exact short-term movements.
- Recognize that micro variations often reflect noise like weather or holidays, not clear trends.