AutoNation v Carmax

23 Jun 7:55am
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Here is a look at both AutoNation (AN) and CarMax (KMX)



My thoughts are this:
CarMax will hold up well during times of crisis,but, when that crisis ebbs (they always eventually do) AutoNation will outperform. Of the two, the current GM, Chrysler dealership shedding has far more benefited AutoNation in terms of its market share.

I also am not sold on the "used car" model longer term. Again, in times of stress it will, while not prospering, hold its own so to speak. I much prefer the diversity of options and product mix of an AutoNation.


Disclosure ("none" means no position):Long AN, none

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About

ToddSullivan

A Massachusetts based value investor, I look for companies whose current valuation is at a discount to their true value. When I purchase a stock, my typical holding period is several years. I consider buying a stock purchasing a piece of a business. I am confident once I make a decision to buy that eventually the market as a whole will recognize the true value of the business and value it accordingly. It may take 1 month, 6 months or a year, but if I buy it at enough of a discount to its true value my results will be (and have been) superior to the market as a whole. Of all the disparate investing disciplines, value investing has stood the test of time. The great investors of have all been value investors. Warren Buffett, Ben Graham, Bill Ruane (Sequoia Fund), Bill Miller and Wally Weitz, all have consistently outperformed the market for decades by using various forms of value investing. Currently I am a contributing writer to Seeking Alpha, Vinvesting.com, The Stock Masters and Value Investing News. Posts have been reprinted in The Wall St. Journal, Yahoo Finance, Google Alerts, Google Finance, TheStreet.com. 24/7 Wall St. and Topix.net.