Junk to Gold - dominating an unsexy industry

Copart

Better than boring alone is a stock that's boring and disgusting at the same time. Something that makes people shrug, retch, or turn away in disgust is ideal.

Peter Lynch, One up on Wallstreet, Chapter 8 (3)

Copart CPRT 0.00%↑ has been a tremendous success story in a boring and dirty industry. The company was founded in 1982 by Willis Johnson with just one salvage yard in California and has since then compounded by deploying long-term thinking and operational excellence in a market with secular tailwinds. Over the last years Copart has been very stable and just climbed higher.

I first invested in the company one and a half years ago during the brief period of stagnation in the share price and sadly didn’t manage to build a meaningful position. The company continued to run higher in recent months. Let’s review the business model of this steady compounder and why it has such a great moat.