Copart: Growth Beyond Salvage with Drew Cohen

In this episode of 'Company Breakdowns', Drew Cohen from Speedwell Research joins Erik to delve into the intricacies of Copart's business, a leading tech company in the salvage vehicle marketplace. Dive into Copart's impressive financial performance, including high ROIC, consistent growth, and a strong balance sheet.

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LINKS:

Newsletter: 

https://www.speedwellmemos.com/

The Synopsis Podcast:

Spotify: https://open.spotify.com/show/3lGqHRKHd7t5LIpKc8f7Li

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FOLLOW ON X:

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TIMESTAMPS:

(00:00) Intro 

(00:28) Drew Cohen and Speedwell Research

(03:03) Unpacking Copart's Business Model and Market Position

(06:58) The Founding Story of Copart and Its Evolution

(14:59) Strategic Growth and Capital Allocation at Copart

(17:11) Sponsor: Brave

(20:38) Aligning Business Models with Incentives for Success

(26:08) Coping with Catastrophes: Copart's Operational Excellence

(29:48) Diversification Beyond North America and Salvage

(32:18) International Expansion: Challenges and Opportunities

(39:04) The Complexities of Entering the Salvage Vehicle Market

(43:33) The Future of Copart in the Age of Autonomous Vehicles

(46:53) Financial Insights and Copart's Business Model

(49:59) Weighing the Bull and Bear Cases for Copart

(55:40) Final Thoughts and the Price Valuation Discussion

(57:01) Wrap