Credit Acceptance Corporation
Thesis
Credit Acceptance is a lender of last resort for consumers with poor credit looking to buy cars. The company has a unique model that aligns its interests with car dealers, allowing it to effectively manage risk and maintain high returns on capital. Despite being lumped in with other subprime lenders, CACC's disciplined approach and strong management team make it a compelling investment opportunity.
Did it work?
The stock price of Credit Acceptance has increased by an extraordinary 5825.2%, indicating that the investment thesis was correct in predicting significant appreciation. The company's unique model and disciplined approach have likely contributed to this impressive performance, validating the thesis that it is a compelling investment opportunity.
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