When I was eighteen years old, my dad offered me this investing advice: invest in blue chip companies selling for $6, with a P/E of 6 and paying (a dividend yield of) 6 percent.
P/E + share price + dividend yield = 18.
So, Ford (F) fit/hit those parameters:
- indices
- P/E: 4
- yield: 3
- share price: 11
- = 18
Until this: park your EV outside.
I love the "NASCAR fix":
- add drain holes to an under-hood shield and change the active grille shutters to allow more air flow and reduce under-hood temperatures to below the ignition points of fuel vapor or engine oil.
Exactly what they do during NASCAR pit stops to quell over-heating.
Really: that's all it takes? Drill a few drain holes and change the grille shutters?
On another note, for investors, is Ford a "value" investment or a "growth" investment.
This is where you start. P/E:
- F: 4
- TSLA: 102
From there it's an easy question to answer.
A corollary: are Tesla owners buying EVs or are they buying luxury cars?
If Tesla owners are buying luxury cars, then Ford is a value company.
If Tesla owners are buying EVs, then Ford is a growth company.
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Further Explanation
If Tesla owners are buying luxury cars, then they will continue to buy luxury cars and, generally speaking, Ford is not considered a "luxury" car manufacturer. Therefore, if Tesla owners are buying luxury cars, Ford is a value company.
However, if Tesla owners are buying EVs, they will want the best EV for the buck. Ford will compete on price and selection. If all those folks in line for Tesla EVs are more interested in EVs than luxury, then Ford has a huge market, and Ford should be seen as a growth company.
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