Volkswagen AG

  • 21 Mar
    This Industry Is About To Be Disrupted In A HUGE Way

    This Industry Is About To Be Disrupted In A HUGE Way

    • There are three trends of huge importance in the car industry: electric drive, autonomous drive, and transport as a service.
    • It’s important how this could impact margins and sales.
    • A trend where everything becomes cheaper isn’t a trend you want to be invested in with a few exceptions.



    Introduction

    This past weekend, I discussed Ford from a cyclical sector perspective but there is so much going on in the automotive sector making it a much different environment from what it has been in the last 100 years.

    Today, we’ll discuss what’s changing in the automotive industry and how that will impact producers over the next 10 years. The secular trends I discuss in this video are the shift from internal combustion engines to electric-powered, the shift from active-drive to autonomous, and the shift from user-owned to drive-for-hire services, think of Uber, Lyft, Didi, etc. More →

  • 30 Apr
    Sunday Edition: When Buying Luxury Isn’t So Illogical

    Sunday Edition: When Buying Luxury Isn’t So Illogical

    Sven wrote an interesting article a couple of weeks ago on Ferrari (NYSE: RACE), and how investing in it is dangerous as doing so is investing purely in sentiment. If you didn’t have a chance to read it at the time, you’ll find the article here.

    I agree wholeheartedly with Sven on Ferrari. The brand is synonymous with exclusivity, and when a brand’s market is meant to remain small—Ferrari produces only about 8,000 vehicles per year—it’s hard to imagine how the company intends to grow sales, and if sales and revenue won’t grow significantly over time, I have to wonder what the real point is in investing in the company.

    Not only that, but the instant sentiment for the company changes or the market begins to decline, Ferrari’s stock price will undoubtedly fall significantly and any gains made will be wiped out.

    However, I also believe that there are ways to invest in luxury that do make sense. More →

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