Copart (CPRT, Financial) reported roughly flat revenues for its April ending quarter as the Company processed lower totaled automobile volumes at auction, likely due the decline in U.S. driving activity during COVID-19 stay at home orders. However, we believe U.S. driving activity bottomed sometime in mid-April and has recently returned to more normal levels, aided by a shift away from mass transit. We added to our Copart position as we think the market underestimates the recovery in auction volumes as a result of this rebound in U.S. driving activity.
From David Rolfe (Trades, Portfolio)'s Wedgewood Funds second-quarter 2020 shareholder letter.
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