Putting your money where your mouth is...

**Polyal** · 04-10-2010, 03:04 PM

Ok so I have had some experience over the years with mixing business with pleasure and typically it can be painful. Also realise that investing with your heart is not a flash idea either buuuuuut....

Who here has Ford US shares? I know I have probably missed the boat, as the little research I have done indicates that the share prices has risen quiet well over the past few years.

Example..

http://finance.yahoo.com/echarts?s=f...urce=undefined

So, do people think its to late to jump on board? Ive just got a feeling that the company is on a continued rise and well to be frank I would like to have my little interest in it.

I am not talking major $$ here, and I am looking at a 5-10 year deal, Im young(ish) so I am certainly not betting my super or anything like that on it. I just find it more interesting that leaving my cash in a term deposit.

Im impressed with the CEO, I believe in the product and its future direction and well I guess I have a soft spot for the brand...my income is not dependent on the success of it, but naturally movement in the positiive direction would be nice.

Any thoughts?

BFZF8 · 04-10-2010, 03:09 PM

I think you could certainly do worse. I share your view that FoMoCo is on an upward spiral and if had the money laying around I wouldn't mind buying some Ford shares.

Yes it would have been a better time to buy last year but I certainly don't think it's too late.

Boosh Brus · 04-10-2010, 03:48 PM

The question is do you think the company is a sound investment?
Also what are you goals? How much do expect to earn? What is your risk level?

Personally I would not touch it because I am bearish on the US economy. In the short term it might rise. Throwing money into the economy does that. i.e. crazy schemes, bailouts, 0% interest, cash for clunkers etc but are they sustainable?

There are plenty of other sound companies around locally and abroad. Do your own research. If you think it looks good fundementaly and/or technically then buy in. Don't buy with your heart just because its Ford. My personal opinion not advice.

sxckevo · 04-10-2010, 09:58 PM

Quote:

Originally Posted by Boosh Brus

The question is do you think the company is a sound investment?
Also what are you goals? How much do expect to earn? What is your risk level?

Personally I would not touch it because I am bearish on the US economy. In the short term it might rise. Throwing money into the economy does that. i.e. crazy schemes, bailouts, 0% interest, cash for clunkers etc but are they sustainable?

There are plenty of other sound companies around locally and abroad. Do your own research. If you think it looks good fundementaly and/or technically then buy in. Don't buy with your heart just because its Ford. My personal opinion not advice.

Agreed! I've had a bit to do with shares, and I agree America still probably isn't in a position for me to be putting money into there companies. I know what you mean though I once to thought about buying 'ford' shares because of my love of the brand but probably not at the moment.

irish2 · 04-10-2010, 09:08 PM

Would have been better off buying them for US$1.01 in early '08. Then sold out when they cracked $10

**Polyal** · 04-10-2010, 10:03 PM

Putting bias aside I cant see how Ford is going to do badly over the next 5 years atleast. Id never think about buying any other US car company shares thats for sure.

But at the moment the management is doing well, the product out now is solid and so are the up and coming models, IMO the Americans are on their side as they resisted bailouts this time around.

I agree that its risky, but you can say that about all shares I guess.

**Revolver** · 05-10-2010, 12:02 AM

Quote:

Originally Posted by Polyal

Putting bias aside I cant see how Ford is going to do badly over the next 5 years atleast. Id never think about buying any other US car company shares thats for sure.

There really, lies your answer. If your not willing to put your money on any other car maker in the US, then there is your answer....

I know its hard, we as humans are emotional beings. We judge with our emotions. So keep emotions aside. Look at other places to invest. Mining companies are making their fair share of money. Look at Nathan Tinkler. (Rumored to be the new/next co-owner of DJR/JBR). Never buy into a company just because of your "loyalties" there are few I want to sink some money into, but I'm not.

Boosh Brus · 05-10-2010, 06:58 AM

Quote:

Originally Posted by Polyal

Putting bias aside I cant see how Ford is going to do badly over the next 5 years atleast. Id never think about buying any other US car company shares thats for sure.

But at the moment the management is doing well, the product out now is solid and so are the up and coming models, IMO the Americans are on their side as they resisted bailouts this time around.

I agree that its risky, but you can say that about all shares I guess.

My concern is not so much with the management or the product rather the economy. I believe the strength in the US stocks at the moment is artificial. I can expand on this if you want. I also believe that the US needs a recession. If this happens no one will be buying cars and the government wont be able to bail them out. Will it happen in the next 5 years? Who knows? the optimistic financial commentators say it will never happen and the doomsdayers say it will happen in the next 20 seconds.

It comes down to your risk profile. I feel safer with the Australian economy so I would rather buy some blue chip AUS stocks (and I have). When the US drops I will consider buying in. If I am wrong and the US prospers there is no loss for me because I have a quality investment. In general Australian stocks have much cheaper brokerage as well.

I am not the only one thinking this way. There is a reason that the Australian Dollar is strong against the US at the moment.

However Brazen makes a good point that you probably know more about Ford then most people in the market.

**ebxr8240** · 04-10-2010, 11:05 PM

Buy down sell high..
In most cases that's opposite what most are doing...

Brazen · 05-10-2010, 12:17 AM

As soon as you invest OS you have foreign currency risk. If FORD US appreciated by 20% but the Australian dollar depreciates by 30% you lose. I have invested OS purely on the AU dollar fluctuation so I can win. As soon as you buy foreign stocks you introduce other risks, having said that I often invest into companies that I am passionate or follow closely, even though they arnt current stock picks (Cochlear, CSL for example - As i believe in their research), so Ford might be a good pick from your lifestyle perpective. I say go for it, as the best stock analysts dont probably know much about of Ford as you do (my advice is purely without research and should not be relied upon by anyone!)