In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool analysts Jason Moser and Brendan Mathews take a question from a reader who asks, "What is Ford (NYSE:F) going to do? I bought at $16 and sold at $15. Some say it will drop to $12; others predict $17-$18 this year. What do you think?"
Jason and Brendan both think that Ford is a good business with a reputable brand and great leadership today in CEO Alan Mulally and COO Mark Fields. However, Jason believes the best time to invest in Ford was back during the bailout crisis, when uncertainty was so high. Automakers in general operate in a very capital-intensive industry, which can make profitability difficult at times due to the cyclical nature of the auto industry. Regardless, it is best for investors to focus on the long term and not worry about short-term movements in the stock price. As long as the investment thesis is still sound, it's best to focus more on how the business is operating, and less on what the stock price is doing.