Question

What would an investor need to know for making an investment decision on Ford Motor Comapny legal point of view (what specific analysis would help the investor make an informed decision)? [200 words or more] Thank you for your time and effort. Will give thumbs up.

Answer 1

The performance of Ford Motor Comapany was good enough in the year year 2019 as its stocks performed better than its competitors. But its has also underperformed when compared to other companies. Despite of its good performance, the US-China trade tensions are the reason for its falling sales and affecting its short term prospects. Due these trade tensions, the demand for automobiles mostly fall because the purchasers mostly avoid buying during these economic concerns, which results in decreased profits for the manufacturers. Although the company does not provide a favourable amount of return, but this will not necessarily continue. So it is crucial that the investors keep an eye on how the things work out for the company.

The shares of Ford Motor Company were struggling from past two years and the start of year 2020 have also been not so good as the company's shares fell due to the outbreak of COVID-19. It must be noted that this time may be the opportunity to buy Ford Motor's shares as the market can be bullish. Also, the valuation of stock of Ford is low, which is another good reason why an investor may choose to invest in its stocks.

The shares of Ford Motors is a good choice if one is willing for long term investment. Also if the trade tensions between US and China are resolved, then the share of Ford may regain its strength. The resolved trade tensions and some great deals and developments may prove to be a boon for the world economy and Ford will also get a much needed boost.

An investor, while making investment decisions has so many comapnies to choose from and hence, there lies an opportunity cost for every investment made by the investor in the form of investment which is foregone. The investment decision must be taken by an investor only after due diligence. It should be well thought and should be made with the help of a dedicated financial planner. He must be clear about his investment objectives, that whether he wants to invest for tax saving or he wants to make investment for financial security.

The investor must also be ready to bear risks that arise from making investments. The investment portyfolio should be balanced with high and low risk securities. There is no specific rule of making investment, but it should always be made by thoroughly understanding the risk factors.

Another thing which an investor must be clear about is the amount of investment he is willing to make after planning for his monthly expenditures. He should not invest a huge amount at once, rather he should save the money and plan his investment over a specific period of time. The investor must also be alert about the timings when he should buy the securities or any other investment and when he should sell the same.