Giverny Capital Asset Management Exited Its Long-Term Holding CarMax (KMX) in 2025

1 month ago 35

Soumya Eswaran

Fri, January 30, 2026 astatine 8:24 AM CST 3 min read

Giverny Capital Asset Management, LLC, an concern absorption company, precocious published its fourth-quarter 2025 capitalist letter. A transcript of the aforesaid tin beryllium downloaded here. The Portfolio returned 0.01% compared to 2.66% for the S&P 500. YTD, the money returned 12.58% compared to 17.88% for the Index. The steadfast faced a challenging 4th fourth and calendar year, contempt coagulated appreciation. The outperformance of a fewer ample exertion companies has negatively impacted performance, fixed the portfolio's underweight successful ample tech and overweight successful smaller niche leaders. While portfolio companies are excelling successful net maturation and superior returns, the marketplace is fixated connected AI investments, leaving the existent benefits unclear. Additionally, you tin reappraisal the Portfolio’s apical 5 holdings to spot its champion picks for 2025.

In its fourth-quarter 2025 capitalist letter, Giverny Capital Asset Management highlighted CarMax, Inc. (NYSE:KMX), which it exited during the year. CarMax, Inc. (NYSE:KMX) is simply a utilized conveyance retailer headquartered successful Richmond, Virginia. The one-month instrumentality of CarMax, Inc. (NYSE:KMX) was 15.88%, and its shares mislaid 46.84% of their worth implicit the past 52 weeks. On January 29, 2026, CarMax, Inc. (NYSE:KMX) banal closed astatine $45.53 per share, with a marketplace capitalization of $6.686 billion.

Giverny Capital Asset Management stated the pursuing regarding CarMax, Inc. (NYSE:KMX) successful its 4th fourth 2025 capitalist letter:

"CarMax, Inc. (NYSE:KMX): Selling this banal aft years of ownership represented for maine a disappointing extremity to a tumultuous relationship. A batch of things went incorrect for CarMax these past fewer years, but absorption besides wounded itself by refusing to accommodate to manufacture conditions. CarMax spent years and immense sums of wealth gathering retired an omnichannel acquisition that fto consumers bargain a utilized car successful store oregon online, oregon to bash parts of the transaction online and parts successful the store. The thought was to beryllium arsenic convenient online arsenic rival Carvana portion retaining a carnal beingness for trial drives, browsing, dropping disconnected trade-ins, etc.

“Don’t Sell It Down Here — That’s a Remarkable Decline”

CarMax, Inc. (NYSE:KMX) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 54 hedge money portfolios held CarMax, Inc. (NYSE:KMX) astatine the extremity of the 3rd quarter, the aforesaid arsenic successful the erstwhile quarter. CarMax, Inc. (NYSE:KMX) reported total sales of $5.8 cardinal successful the 3rd 4th of fiscal 2026, a 6.9% diminution from past twelvemonth owed to little volume. While we admit the imaginable of CarMax, Inc. (NYSE:KMX) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.