Recently started a meaningful position on Copart (CPRT). I really like the risk/reward here. It's in a duopoly in the salvage vehicle industry (one of their growth strategies is to also move to whole car industry). This year the stock crashed and management are doing big buybacks. They own 100% of their yards and most of the growth in the upcoming years will be likely from international markets. It has good ROIC, Balance Sheet, healthy margins and plenty of cash. Revenues 10%+ last 5 and 10 years. Attractive valuation.
The stock crashed because of the competition gaining market share, change of CEO and other short term headwinds in the auto-insurance industry that impacted COPART top line. It's in a "boring" industry but it does diversify from my already saturated tech portfolio. I do see a structural changes in the auto industry that can change Copart's business model like Self Driving Cars and Robotaxis but will likely take years to see those changes.