Copart is down 32%, among his large holdings in drawdown. Like LVMH and Pool, its revenue and profit have fallen — a short-term cyclical problem from current macro conditions; once the cycle changes, revenue and profit should grow again and it should come back strong, since its basic economic moat is still there.

While these others I have large allocations for. So Nike is down 43%, LVMH is down 41%, Copart is down 32%, Pool is down 28%, and Booking is down 26%.

If you look at companies like LVMH, Copart, and Pool, you will find that revenues have declined and profits have declined. To me, this is a short-term cyclical problem due to current macroeconomic conditions, isn't it?

But over time, once the cycle changes, its revenues will grow again, its profits will grow again, and it will come back strong because its basic economic moat is still there, okay?