CarMax, Inc. (KMX)

Why did Warren Buffett buy this?

warren baby, ur too good

This account tracks the performance of the investment firm Ruane, Cunniff, and Goldfarb - the investment manager of Sequoia Fund.

Buffet

Growing company with lots of room to grow, smart advertising and a high-profit business model.

With the stock trading closer to it's high of over 17 and the lessening of the economy, frugality is going to be important to the consumer and while new car sales continue in a dire slump, used car sales are up. The no haggle, pricing and fact that it's one of the best companies to work for as rated by Fortune Magazine tells me that there is excellent management structure in place.

Berkshire

This is a total long term play. Economy will turn around and this company has a killer business plan. Once consumers start to purchase cars again, they will come to Carmax to do it.

Earnings are tomorrow just wait and see.

I work for carmax this Company is way too strong.

Let's try this whole Buffett thing again. Actually, I think the odds are good that the recession will be long enough to benefit used car companies, especially the best used car company around.

Sounds awful, but when GM, Chrysler and Ford are no longer making new cars, where do people get their cars? It will take quite a long time for the foreign auto makers to ramp up production. So where to you buy a car in the mean time? CarMax!

buffett bought it for more

Car Max is suffering from the down economy in which car sales are at the lowest level in recent history. When people do buy vehicles, they will be looking for reliable used ones. Car Max has a good reputation and is "best of breed" on a national level. Car Max was on a great growth track in "stores" and profitability. The downturn has provided time for belt tightening and Car Max will be ready to take advantage of any improvement in the economy.

USED CAR CO

Buffett pick at a low. I'm guessing $9.66 is a lower cost than what he paid.

WB at 25% + discount

Price + Service + Quality. It's not too often you find any company that can deliver all three (let alone from a used car dealer). Every Carmax customer I know raves about their service. My personal car buying experience from CarMax was so great, I actually asked my sales rep what their ticker symbol was.

With the current status of the economy, it may take a bit for price to return to its 52-week high. However, this could be a good pick if you dollar cost average your entries for a long term holding.

Car dealership chain (used cars) will enjoy resurgence when we can all afford to buy cars again.