Motley Fool podcast shares stock stories of Copart, Axon, Zoetis, Apple, and more
From Nasdaq: 2025-02-19 11:15:00
In a Rule Breaker Investing podcast, Motley Fool analysts share stock stories of patience, transformation, and success. From an iconic auto auction company to an underestimated footwear brand, learn lessons in investing. Discover Apple’s historic journey from IPO to becoming a top company. Listen for fiery sparks of interest in investing.
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Join the Rule Breaker Investing podcast for stock stories that educate and entertain. Motley Fool analysts share tales of innovation, resilience, and wealth creation. David Gardner and his team gather around the campfire to discuss stock market stories. Pre-order Gardner’s stock-picking guide for valuable insights and lessons. Get ready for Market Cap Madness in March. Andy Cross watched the Super Bowl as an Eagles fan. He enjoyed the NFL flag football ad with his daughters, harkening back to the 1980s. The stock being discussed is Copart, ticker symbol CPRT. The title of the story is “From Rust to Riches: Turning Trash to Cash With Copart.”
Willis Johnson, a Vietnam veteran, started Copart in 1982. He revolutionized the salvage auction industry by auctioning off wrecked cars for reuse or spare parts. By going public in 1984, Copart expanded its network and pushed the business online, connecting buyers and sellers worldwide. The stock price soared from $0.125 to over $2 by 2002.
With over 120 salvage yards and 30% market share, Copart had impressive financials and a growing digital presence by 2007. The company’s success and founding story led to it being added to Stock Advisor and Rule Breaker services. Copart has become a global leader in the salvage and used car auction industry. Andy Cross shared a story about the rise of Copart, a scrap metal company that has seen its stock value increase 19 times since 2009. David Gardner discussed the importance of balancing short-term dynamics with long-term potential in investing, highlighting the value of holding onto great businesses. Kirsten Guerra discussed the success of Axon Enterprise, formerly TASR, in her story titled “Ignorance is Lucrative Bliss,” emphasizing the benefits of investing in what you know. Joining the Motley Fool in 2019, Kirsten reflects on her journey as an investor and employee, showcasing the power of personal growth and experience in the stock market. Kirsten Guerra invested in Axon Enterprise based on David Gardner’s recommendation, despite not fully understanding the thesis behind it. Axon grew revenue at an accelerated pace in 2019, launching new products like body cameras and evidence.com. The company’s optionality and expansion into recurring revenue model impressed Kirsten.
Despite the market downturn in 2020, Axon continued to perform well, launching new products like Axon respond for 911 calls and a drone program. Kirsten made seven small purchases of Axon throughout the year, contributing to its growth in her portfolio. The company’s founder, Rick Smith, continued to broaden its mission statement of making the world safer with technology.
Today, Axon is Kirsten’s largest holding, comprising 12% of her portfolio with shares up over 1,200% since her initial investment. Despite not conducting detailed valuations or closely monitoring the stock, Kirsten’s faith in the company’s mission and growth potential has paid off. She acknowledges that her lack of expertise in police enforcement prevents her from accurately predicting Axon’s future expansions. In a recent podcast, David Gardner discusses the importance of investing in companies with a clear mission, using Axon Enterprise as an example. Axon has shown high ROI and potential for global impact with non-lethal weapons. Despite market fluctuations, long-term investments like Axon can pay off significantly.
Jason Moser joins the conversation to talk about Zoetis, a company dedicated to animal health products. Zoetis, spun off from Pfizer in 2013, focuses on developing vaccines and medicines for pets and livestock. With approximately 900 million dogs worldwide, the need for animal care is vast, making Zoetis a compelling investment in the animal health industry.
Moser highlights the significance of companies like Zoetis and IDEXX Laboratories in caring for pets and livestock. As a shareholder in both companies, Moser emphasizes the importance of investing in businesses that contribute to the well-being of animals. This aligns with Motley Fool’s mission of investing in companies with a positive impact on the world. David Gardner and Jason Moser discuss Zoetis as a compelling investment opportunity due to its growth since spinning off from Pfizer in 2013, with shares up over 500%. They emphasize the importance of talking to professionals in the field, like veterinarians, who are big fans of companies like Zoetis and IDEXX. The market cap of Zoetis is $78 billion, twice that of IDEXX. Veterinarians at Potomac Valley Veterinarian Hospital are big stock guys who appreciate the value of Zoetis as an investment opportunity. While initially unsure of how to pronounce the company name, David Gardner now appreciates the pun in its title, “a Wonderful Companion stock”. They discuss the value of seeking advice from professionals in the field and the importance of patience and long-term investing in companies like Zoetis. Sanmeet Deo discusses the future of Tesla and Crocs on the Campfire podcast with David Gardner. Crocs went from being ridiculed for being ugly to becoming a fashion icon with sales growth from $1.2 billion in 2019 to around $4 billion in 2022. The stock price soared from a low of $1.24 in 2008 to a peak of $180 in 2021, making it a 100-bagger. Crox’s Market Cap is only $5 billion today, showing potential for growth. The company has room to expand in international markets, hinting at future success. The story of Crox reflects resilience and reinvention, emphasizing the importance of sticking to your core values and pushing forward, even in tough times.
Apple, with its IPO in 1980, raised $100 million and closed with a market cap of $1.8 billion. The company has shown consistent growth over the years, proving that it’s never too late to invest in great companies like Apple. Despite periods of stagnation, Apple’s stock has historically shown significant growth, making it a reliable investment option. In 2008, Motley Fool recommended Apple stock at $4.89. The stock hit $75 by 2009, closed the decade at $7.50, then skyrocketed to $235 in 2020. Lessons: don’t assume you’ve missed out on great companies, founders can be succeeded greatly, and even Warren Buffett changed his mind on Apple, now worth over $100 billion in his portfolio. Apple, a company known for its innovation and impact, is highlighted as a prime example of long-term investing success. Investing in companies that do good in the world can yield fruitful results over time, as seen with Apple’s growth and impact on the market.
Rule Breaker Investing reminds listeners to not solely base their stock decisions on advice from the program. Disclosure of the Motley Fool’s positions in various companies, including Amazon, Apple, and Tesla, is provided, along with a disclaimer about potential conflicts of interest.
Key figures like John Mackey and analysts like Andy Cross, David Gardner, Kirsten Guerra, and Sanmeet Deo have positions in various companies mentioned. The Motley Fool recommends Amazon, Apple, and other companies while disclosing their positions and providing a disclaimer about their investment advice.
Read more at Nasdaq: Rule Breaker Investing Stock Stories, Vol. 10: Frosty Campfire, Fiery Stocks