Carvana has been amazing coming off a liquidation price. Good thing I bought some around then when it seemed clear they weren’t going under. But in the lead up to my post, the stock traded down severely because they were overvalued.
KMX will do fine over time. I continue to own a good chunk of it. I think it’s got a good business that should do well even if the near term recovery hasn’t quite put it back to its historical economics.
But who knows - I could be wrong. I have ended up having a portfolio that reflects a macro bet on the recovery of autos. This wasn’t intentional. I was just looking for stocks that seemed undervalued and had a good recovery thesis coming out of COVID. Then one day I looked at my portfolio and I had bets on auto suppliers, auto firms, and auto resellers. It’s a bigger bet on auto recovery than I would have made intentionally. So I will have to see if I trim out of some of those bets.