In Carmax's (KMX, Financial) case, after a period of sharply rising used car prices, affordability took another hit as would-be buyers now face higher borrowing costs for auto loans. The industry at large will need to digest this reset, but as the largest scaled player, and with a growing set of omnichannel tools, we believe Carmax is poised to not only weather the storm but to continue to grow market share.
From Wallace Weitz (Trades, Portfolio)'s Hickory Fund third-quarter 2022 letter.
