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Strategies & Market Trends : Fundamental Value Investing

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To: robert b furman who wrote (4569)5/20/2021 2:06:17 AM
From: bruwin2 Recommendations

Recommended By
Lance Bredvold
The_Commodore

  Read Replies (1) of 4719
 
Elon Musk, who comes from my part of the world, got in early with the Electric Vehicle (EV) which "pandered" to the "man made climate change" world-wide lobby, so he had quite a head start on the competition.

HOWEVER ....... the "competition" is fast catching up as virtually ALL the Major Vehicle brands are producing their own versions of the EV. That, of course, creates COMPETITION, and with competition comes falling prices of the product. That, in turn, eventually affects a company's EBITDA Margin and its Bottom Line Margin.

That's one of the reasons that a "Buffett type" investor doesn't target companies that primarily sell a commodity for which there's Considerable Competition in the marketplace. Therefore THE PRICE of the product becomes THE PRIMARY FACTOR for the consumer in making a Buy decision.

And "Thanks" for that "good read" Bob. It was, indeed a good read and highlights the ramifications that face the EV market .....
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