分组1 - Giverny Capital Asset Management's portfolio returned 0.01% in Q4 2025, underperforming the S&P 500 which returned 2.66% [1] - Year-to-date, the fund achieved a return of 12.58%, compared to 17.88% for the S&P 500 [1] - The portfolio's underweight in large technology companies and overweight in smaller niche leaders negatively impacted performance [1] 分组2 - CarMax, Inc. (NYSE:KMX) was highlighted in Giverny Capital Asset Management's investor letter, with a one-month return of 15.88% but a 52-week loss of 46.84% [2] - As of January 29, 2026, CarMax's stock closed at $45.53 per share, with a market capitalization of $6.686 billion [2] - Giverny Capital Asset Management expressed disappointment in its relationship with CarMax, citing management's failure to adapt to industry conditions [3] 分组3 - CarMax reported total sales of $5.8 billion in Q3 of fiscal 2026, reflecting a 6.9% decline from the previous year due to lower volume [4] - Despite acknowledging CarMax's potential, Giverny Capital Asset Management believes certain AI stocks offer greater upside potential and less downside risk [4]

Core Insights - Courant Investment Management has completely exited its position in CarMax, selling 247,520 shares for an estimated value of $11.11 million, indicating a significant shift in investment strategy [1][2]. Company Overview - CarMax operates a nationwide network of used vehicle retail stores, generating revenue through vehicle sales, financing, and ancillary services, with a total revenue of $25.94 billion and a net income of $457.84 million [4]. - As of January 21, CarMax shares were priced at $48.75, reflecting a 38.7% decline over the past year, significantly underperforming the S&P 500 by 52.3 percentage points [3][4]. Recent Performance - In the third quarter, CarMax reported a 50% year-over-year decline in net earnings to $62 million, with earnings per share (EPS) dropping from $0.81 to $0.43, attributed to softer unit volumes and margin pressures [6]. - Comparable store used unit sales decreased by 9%, although CarMax Auto Finance income increased by 9% to $174.7 million, indicating challenges in the core retail operations [6]. Management Actions - The company is implementing cost-cutting measures, aiming for at least $150 million in reductions in selling, general, and administrative expenses (SG&A) by fiscal 2027, and has repurchased $201.6 million of stock in the last quarter [8].

Core Insights - Vulcan Value Partners reported positive results across all its strategies for the year, with the All-Cap Composite returning 1.3% in Q4 and 10.7% YTD, despite overvalued markets [1] - The firm emphasizes safety and long-term gains over short-term performance, drawing parallels to the late 1990s dot-com bubble and current AI disruptions [1] Company Highlights: CarMax, Inc. (NYSE:KMX) - CarMax, Inc. was added to Vulcan's All-Cap Strategy, with a one-month return of 21.80% and a 52-week loss of 42.19%, closing at $47.83 per share with a market cap of $5.826 billion [2] - CarMax is the largest used car retailer in the U.S. and has faced underperformance due to macroeconomic, competitive, and operational factors, including a depressed used car supply and increased competition from Carvana [3] - Despite competitive pressures, CarMax's customer experience, brand strength, scale, vertical integration, and omnichannel approach are seen as competitive advantages that will help it gain market share in a fragmented market [3] - The company is making operational changes to increase volumes, lower costs, and expand profitability, with expectations of a recovery in earnings as the used car market normalizes [3] - CarMax has a solid balance sheet, generates significant free cash flow, and is actively buying back shares at a discount to intrinsic value [3]

Core Insights - CarMax shares experienced a significant decline of 53% in 2025, attributed to a challenging market environment and declining sales [1] - The company is losing market share to competitors like Carvana, which reported a 44% increase in units sold last quarter [4] - CarMax's total revenue fell by 7% year-over-year to $5.8 billion in the third quarter of 2025, with a 2% decline in sales over the first nine months of the fiscal year [3] Company Performance - CarMax operates used car lots, promoting a no-haggle buying and selling process, which has allowed it to achieve significant scale in the U.S. market [2] - The company is facing declining volume, sales, and profit margins, which poses a risk to its stock price [3] - The resignation of CEO Bill Nash in December raised concerns among investors regarding the company's future [4] Market Position - CarMax's current price-to-earnings ratio (P/E) stands at 15, indicating a relatively low valuation after the stock's significant drop [6] - The company has high fixed costs, necessitating a certain level of unit volume to maintain profitability, which is currently under pressure due to declining sales [7] - If CarMax can stabilize its market share and profit margins, there is potential for stock recovery; however, continued competition from Carvana could hinder this [9]

Core Viewpoint - Grabar Law Office is investigating claims on behalf of shareholders of CarMax, Inc. regarding potential breaches of fiduciary duties by certain officers and directors [1] Group 1: Investigation Details - The investigation focuses on whether CarMax's officers and directors made false or misleading statements about the company's growth prospects [3] - Allegations include that CarMax overstated its growth due to temporary benefits from customer behavior influenced by speculation regarding tariffs [3] Group 2: Shareholder Actions - Shareholders who purchased CarMax shares prior to June 20, 2025, and still hold them can seek corporate reforms and the return of funds at no cost [2][4] - Interested shareholders are encouraged to contact Grabar Law Office for more information on the investigation and potential actions [2][4]

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against CarMax, Inc. and has reminded investors of the January 2, 2026 deadline to seek the role of lead plaintiff in a federal securities class action filed against the company [1] Group 1 - The investigation is being conducted by a leading national securities law firm with offices in New York, Pennsylvania, California, and Georgia [1] - The federal securities class action has been filed against CarMax, Inc. [1]

Core Viewpoint - A class action securities lawsuit has been filed against CarMax, Inc. alleging securities fraud that affected investors between June 20, 2025, and November 5, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that defendants made false statements and concealed information regarding CarMax's growth prospects, which were overstated due to temporary benefits from customer purchases driven by speculation about tariffs [2]. - It is alleged that the statements made about CarMax's business operations and prospects were materially false and misleading, lacking a reasonable basis during the relevant time [2]. Group 2: Investor Information - Investors who suffered losses during the specified timeframe have until January 2, 2026, to request appointment as lead plaintiff, although participation in any recovery does not require serving as a lead plaintiff [3]. - Class members may be entitled to compensation without any out-of-pocket costs or fees, and there is no obligation to participate [3]. Group 3: Firm Background - Levi & Korsinsky, LLP has a history of securing hundreds of millions of dollars for shareholders and has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [4].

Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. and certain senior executives for securities fraud following a significant stock drop attributed to potential violations of federal securities laws [1][3]. Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the District of Maryland, titled Jason Cap v. CarMax, Inc., et al., No. 1:25-cv-03602, and claims are made under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [3]. - Investors have until January 2, 2026, to request to be appointed to lead the case [3]. Group 2: Reasons for the Lawsuit - CarMax is accused of misleading investors by promoting strong demand for its used cars, which was allegedly inflated by a temporary boost in sales due to U.S. tariffs on cars [4]. - The unexpected departure of CEO Bill Nash on November 6, 2025, is also under investigation to determine if CarMax properly assessed its portfolio of car loans [5]. Group 3: Stock Performance - On September 25, 2025, CarMax reported disappointing financial results, including a 5.4% decline in retail used unit sales and a net income drop from $132.8 million to approximately $95.4 million year-over-year [6]. - Following the financial report, CarMax's stock price fell by $11.45 per share, or about 20%, from $57.05 to $45.60 [7]. - The announcement of CEO Bill Nash's departure and a weak preliminary Q3 2025 outlook led to an additional stock drop of over 24% [7].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased CarMax, Inc. securities between June 20, 2025, and November 5, 2025, of the January 2, 2026, deadline to become lead plaintiffs in a securities class action lawsuit [1]. Group 1: Class Action Details - Investors who bought CarMax securities during the specified Class Period may be eligible for compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties can join by contacting Rosen Law Firm [3][6]. - The lawsuit alleges that CarMax's defendants made materially false and misleading statements regarding the company's growth prospects, which were overstated due to temporary market conditions [5]. Group 2: Law Firm Credentials - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions, highlighting its own achievements, including the largest securities class action settlement against a Chinese company [4]. - The firm has consistently ranked among the top firms for securities class action settlements, recovering hundreds of millions of dollars for investors, including over $438 million in 2019 alone [4].

Core Viewpoint - CarMax, Inc. is facing a securities fraud class action lawsuit due to significant revenue and profit declines reported in its second quarter 2026 financial results, which led to a substantial drop in its share price [2][3][4]. Financial Performance - For the second quarter of 2026, CarMax reported a revenue decline of 6.0% year over year, with total retail used vehicle revenues decreasing by 7.2% and total gross profit declining by 5.6% [2]. - The company attributed these declines to inventory adjustments and a $71.3 million increase in loan loss provisions [2]. Share Price Impact - Following the financial results announcement on September 25, 2025, CarMax's share price fell by $11.45, or 20.1%, closing at $45.60 per share [3]. Lawsuit Details - The class action lawsuit alleges that CarMax's management made materially false and misleading statements regarding the company's growth prospects, which were overstated and not reflective of the actual business conditions [4]. - Specifically, it is claimed that the earlier growth in the 2026 fiscal year was a temporary effect driven by customer speculation regarding tariffs, which was not disclosed to investors [4]. Participation Information - Investors who acquired CarMax securities between June 20, 2025, and November 5, 2025, have until January 2, 2026, to seek appointment as lead plaintiff in the class action lawsuit [5].