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  "documentTitle": "Carvana Co. (CVNA)",
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  "presentationDate": "2019-03-01 00:00:00",
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  "notes": "The slide uses a 'villain' framing to question the validity of Carvana's proprietary model claims.",
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      "text": "Each black dot in the chart represents an automotive securitization market transaction completed in 2018. The black line is the best-fit line of the individual transactions in the chart. The blue line represents the historical and current best estimates of future performance for all loans originated on Carvana's website.",
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      "text": "On what grounds are we to believe that loans originated by Carvana perform better than all other auto loans?",
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      "text": "Units of Measurement?",
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      "text": "How does Carvana get such good terms on subprime loans? Management says the secret is in its model: while all other transactions in the automotive securitization market show a close, consistent relationship between FICO score and expected cumulative loss, Carvana just happens to offer better-performing loans at each weighted average FICO score. Of course, management provides no evidence or data to back this up - just another stylized graph (lacking units or scale) representing \"historical and current best estimates of future performance for all loans originated on Carvana's website.\"",
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      "kind": "paragraph",
      "text": "On what grounds are we to believe that loans originated by Carvana perform better than all other auto loans? On what grounds are the buyers of its loans to believe this?",
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      "text": "\"Each black dot in the chart represents an automotive securitization market transaction completed in 2018. The black line is the best-fit line of the individual transactions in the chart. The blue line represents the historical and current best estimates of future performance for all loans originated on Carvana's website.\" — November 2018 Investor Day Presentation",
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      "kind": "title",
      "text": "Famous Last Words: \"Trust Us\"",
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