Monday, June 26, 2017

Why I keep Buying Ford (F)

Image result for ford

Back in the remaining months of 2008, when the shit hit the fan and a recession hit, was probably my first real look into stocks and the stock market.  With everyone I knew freaking out and losing net worth almost instantly, my buddy Mike educated me on the stock market and let me see what he was doing using e-trade.  I don’t remember what his portfolio was, but we got to talking about Ford (and the other 2 of the Big3) and the cost to purchase.  At the time, I was still married and broke as f#$%.  My ex and I were easily sitting on 150k in student loans, cars loans, and multiple credit cards, not even mentioning the mortgage.  We were making really good money, but didn’t follow a plan and pretty much lived paycheck to paycheck.  Daily, I checked the stock prices and wished I had cash to invest in Ford.  I drove a Ford at the time and have owned several prior and after.  It was a company my family purchased from and still does.  With my daily following of Ford in the 2008/2009 time frame, and at least monthly since, I grew more trusting of Ford and had faith in their ideals.  As far as my knowledge of Ford goes since the crash, and before the crash, they have worked hard to get through it.  Ford saw what was happening and tried hard to cushion the blow by selling off assets in preparation.  They never played the victim and needed or wanted a bailout from the government.  Sure, they took a loan when offered, but it was (and still is) a loan, which they have been paying on.  The loan was mainly used for re-tooling a truck assembly plant to a small car assembly plant.  Part of the loan was also used for future electric vehicle development and they are still pursuing that development.

Ford hit their low on November 19, 2008 with a closing price of $1.26/share.  Today Ford is running around $11.10/share (undervalued in my opinion), which is not a bad increase at 881% in a little under 9 years.  I don’t imagine Ford will be trading much over $35-45/share anytime soon, and I have no idea what factors would make any stock do such a thing, but I do see they are making positive changes in staff and investments and it seems to me that there is room to grow in their current share price.  This fellow at investorplace is of the same opinion and sees Ford growing up to 20% by the end of this year.

MMM, Mr. Money Mustache, recently posted about his excitement for the next recession and how a lot of investors take advantage of the low prices and buy heavily when costs are low.  I too, am excited and hope to be in a better position to actually purchase low with long-term goals of growth.

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