ChristopheNour @ChristopheNour: "In a recent interview, investor..."

France

In a recent interview, investor Mohnish Pabrai explained why he thinks car dealerships are good investment opportunities at the moment. He's so confident in their potential that he allocated 25% of his new fund, launched in 2023, to car dealership stocks. They are good companies with decent fundamentals and are trading at seven times earnings, a stark contrast to the S&P 500's PE ratio over 25. Given the current market environment, where compelling stock ideas are rare, car dealerships could be good candidates. What is interesting is that a lot of superinvestors seem to like this industry. Famous investors such as Greg Alexander, David Abrams, Bill Nygren, Daniel Gladiš and Leon Cooperman have recently invested in car dealerships. What's driving their interest in these businesses? The car dealership industry includes companies like Autonation, Lithia Motors and Group 1 Automotive, but Pabrai highlighted that the best one in terms of capital allocation is Asbury Automotive Group. So let’s analyze this company and see if it’s a good opportunity at the moment. Asbury Automotive Group is one of the largest automotive retail and service companies in the United States. Its revenues and profits come from new car sales, used car sales, service and parts, and financing and insurance brokerage. Founded in 1995, it has expanded significantly through both organic growth and acquisitions. Over the past three decades, it has developed a diverse portfolio of 31 automotive brands and 158 dealership locations, serving customers in various regions throughout the US, with a focus in Texas and Florida. It has an efficient capital allocation policy and a lot of room to grow due to the great fragmentation of the whole sector. $ABG (Asbury Automotive Group Inc) $AN (AutoNation) $PAG (Penske Automotive Group Inc) $LAD (Lithia Motors Inc) $GPI (Group 1 Automotive Inc)

5 Mentioned

ABG

Asbury Automotive Group Inc

AutoNation

PAG

Penske Automotive Group Inc

LAD

Lithia Motors Inc

GPI

Group 1 Automotive Inc