Carvana: The Armchair Investor’s perspective & Could Auto1 become the “German Carvana” ?
For some reason I ran into a “Twitter battle” about Auto1, with the main Bull case being that Auto1 is the German Carvana. In addition, some good investors that I follow have revealed Carvana as a position.
Time to have an “Armchair investor” look into Carvana. The goal here is two fold:
- Understanding if Carvana as such is a good business (and maybe even interesting as investment)
- Finding out if Auto1 could indeed is or can become the “German Carvana”
Full disclosure: the guy who is writing this, lost significant money with investing into Cars.com, another US online car company. So as always: PLEASE DO YOUR OWN RESEARCH !!!
The Carvana Business “Bull Case”
important: Just as I was about to finish the post, Rob Vinall has released his 2021 letter to investors with a very convincing pitch for Carvana. I highly recommend to read it first.