Subject: Re: OT: Car Max (KMX)
Jim, I admire how you're able to distill your thoughts into a short few sentences!

Perhaps they are concluding that the era of low interest rates is over, and Carmax will be unable to attain their previous interest margin again?

Sure but people still need cars to go to work etc. They'll get used to higher rates.


The chaos of supply over the last couple of years made everything anomalous.

That's key to my thesis. I don't think it makes sense to extrapolate the post corona years. They may not get back to pre-corona EBIT margins of 6.5% but I'm pretty sure they can achieve a 4% EBIT margin like prior to 2008 when interest rates were higher.

One part that's a lasting downer is that they are battening the hatches a bit, and have halted buybacks just while the share price got attractive. A shame.

Same with DG, I wish they'd increase buybacks at these prices!