Based on the information provided, the author strongly advises against investing in Ford Motor Company due to several reasons. Firstly, the auto industry is highly mature with limited growth prospects, making it challenging for Ford to significantly boost sales. Secondly, Ford’s financial performance has been lackluster, with revenue increasing at a meager 1.8% annualized rate between 2013 and 2023. Thirdly, the company faces intense competition from other major automakers, making it difficult for Ford to stand out in the market. Fourthly, the high capital intensity of the business puts Ford at a disadvantage during times of inflation, and sometimes even during economic expansions. Lastly, as a cyclical company, it’s uncertain when the economy will shift from a downturn to growth mode. Therefore, despite recent gains, the author recommends avoiding Ford stock with a 10-foot pole.
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