Why I am not buying Ford or GM
Posted on March 12th, 2008 by Will Work for Cheesecake!!!I bought GM before and I didn’t make any money from it. When you start your investing journey you don’t know any better. The deal with automaker is that the industry is generic like computer. The industry is so generic even China is getting into building cars. The Accord is the best seller for Honda but that doesn’t mean it going to lift Honda share up. Let look at Ford’s chart and see what I am talking about?
The highest that Ford ever went was about 16 dollars. In January 2004, you can tell that investor was sending the stock up then in January 2005 the stock began to fall. Mr. Market doesn’t like plants closing and job cut. I don’t like it either. You can take advantage from shorting Ford but that wouldn’t be investing. I have short stock before when I first started my investing. You do make money from shorting but very little. When investors short a stock it usually not a promising company anymore.
Final Thought
I don’t invest in Ford because the company right now is restructuring. Restructure can take many years for you to make any dime. If you don’t believe me then just look at the airlines industry and see how long the industry been down.
2 Responses to “Why I am not buying Ford or GM”
What Moods Are You in Right Now?
March 14th, 2008 at 2:51 pm
I ONLY invest in American companies. Period. I believe it’s the least I can do to help out the ailing economy in the long term. Sure, it’s a given that investing in one of the Big Three Motor Companies isn’t going to produce a QUICK return, but it will eventually produce a decent return. The best time to actually invest in companies, I’ve found, (for the long term) is when they’re restructuring, because their rates are cheapest then. If one can afford to ride it out for the long haul, then the return is good. I try to keep a balanced portfolio, with not all quick return investments. Despite all that, I believe investing in America’s future is the ONLY way to insure America will HAVE a bright financial future. I want that for my kids.
March 15th, 2008 at 2:04 am
I can not argue with your believe and I respect that. I hope that my article doesn’t offense your believe.