July 21, 2010
First, let me congratulate all shareholders of Ford (NYSE: F ) , including my brother David. He and his team recommended the stock in November 2009, and it has since risen more than 30% versus a flat return by the S&P 500. It took guts to jump into an industry in complete disarray and become an owner of Ford shares. This is a perfect example of why David is beating the market by 80 percentage points in our Stock Advisor service since its inception in 2002.
However, if I'm going to buy shares of a company valued at $39 billion, am I wrong to ask for a cleaner balance sheet and a clear view toward long-term growth? I simply can't see how Ford will beat the market from this price over the next five to 10 years. Aren't there many more companies with firmer foundations whose shares are priced more attractively than Ford after its run-up? Companies with little to no debt, or paying a dividend?
I turn to you, Ford shareholders, to guide me in the comments section below. Why would I buy Ford now when I could buy Intel or Walgreen instead? Enlighten me.