Buying Ford

[james.hendrickson]

I just wanted to inform the board that I picked up a few more shares of Ford this morning.

I'm liking their new light truck - the Maverick.

FYI people - buy those dips.

[ua_guy]

What do you think makes Ford a good buy, other than a current dip?

The Maverick is now several model years old, but it does well in its space. I think it's the only thing in its space, actually, it's a small car with a utility bed.

Stellantis (Dodge, Jeep, Ram, Fiat, Alfa, etc) is also experiencing a dip. But they have some serious issues, and that's an automaker I wouldn't consider a safe bet right now.

[bjl584]

I own a Ford truck, but I don't have any shares of their stock.

It had a run up recently, but I haven't paid much attention to it as of late.
I do know that Ford is dealing with some quality issues, and the port shut down could impact their supply chain if it goes on too long.

[Drake3287]

Besides being a long term Ford truck owner, I bought stock years ago when the government was bailing out all the car companies other than Ford. Thought for sure I'd make a killing! Ended up selling it all last year for a loss. (which I needed)

[james.hendrickson]

Besides being a long term Ford truck owner, I bought stock years ago when the government was bailing out all the car companies other than Ford. Thought for sure I'd make a killing! Ended up selling it all last year for a loss. (which I needed)

Well I like the price, its trading for under 11 dollars a share.

[Tabs]

Back in the days of the real estate bubble, F was barely floating above the de-listing price of $2 a share. I kicked myself for not having gotten in on that, and I feel even worse for perhaps talking others out of it, including Steve.

[Drake3287]

Well I like the price, its trading for under 11 dollars a share.

Yep, for the price I paid years ago I thought it might be a fun stock to watch and maybe make a few bucks. Sold at a loss but I did recently buy an expensive new F150, that might help your stock!

[disneysteve]

Well I like the price, its trading for under 11 dollars a share.

I hope you realize that the price of a share of stock has absolutely nothing to do with whether or not that stock is worth buying.

[james.hendrickson]

I hope you realize that the price of a share of stock has absolutely nothing to do with whether or not that stock is worth buying.

Disneysteve - lets talk about that.

Can you point to a reliable securities selection methodology that doesn't involve price?

[disneysteve]

Disneysteve - lets talk about that.

Can you point to a reliable securities selection methodology that doesn't involve price?

Every good selection method doesn’t involve price. Price is irrelevant. A $10 share isn’t a better deal than a $20 share. The price is simply a function of how many shares exist. What if Ford had been $33 last month and they did a 3 for 1 split? Would it suddenly be a better buy now at $11? Of course not. It would still be exactly the same since nothing about the company or its prospects changed. They just manipulated the price.

I don’t invest in individual stocks but I’m willing to bet you can find a company where 1 share of stock at $110 would be a better investment than 10 shares of Ford at $11.

[srblanco7]

Disneysteve - lets talk about that.

Can you point to a reliable securities selection methodology that doesn't involve price?

Price is likely a factor, but it's most often viewed as being relative to earnings. The price of a stock is only a portion of the story. Other factors in selecting a stock could include: risk, yield, the companies competitive position, sector trajectory, and/or financial health. I'm sure there are many more.

[disneysteve]

Price is likely a factor, but it's most often viewed as being relative to earnings.

True. I neglected to mention that part. When looking at a stock's dividend, for example, it's expressed as a percentage of the share price. So price isn't completely irrelevant, but you can't pick a stock just based on the price as that really tells you nothing about the investment prospects of the company. Is Ford a good buy at $11? I have no idea based solely on that piece of information.

[Drake3287]

The one nice thing with Ford stock which has since been discontinued is that if you owned at least 100 shares you qualified for buying a Ford vehicle at the lower X plan price. Lot's of people took advantage of that one.