Copart, Inc. (CPRT)

Copart auctions wrecked cars on behalf of insurers — and owns the land they stand on.

When an insurer writes a car off, it must be removed, documented and sold quickly. The company does that for a fee without buying the vehicle, so scrap and parts prices barely affect its profit — what matters is the flow of arriving cars.

The key asset is its own yards: hundreds of hectares near cities where thousands of vehicles can be brought after a hurricane or hailstorm. There is nowhere to rent such space and permitting a new yard is close to impossible, which is the main barrier for a competitor. The online auction widened the buyer pool to other countries. The company pays no dividend.