BorgWarner (NYSE: BWA) is the kind of stock value investors dream about…
It’s a 140-year-old, all-American business with $14 billion in annual revenue.
BorgWarner is also one of the 25 largest automotive suppliers in the world, making it the perfect “picks-and-shovels” play for the growing auto market.
And it’s a bargain, too!
BWA’s shares are trading at a price-to-earnings ratio of 10.6 compared to an industry average of 16.3.
Sounds like a home run investment in terms of value, right?
But a value stock without momentum is like a sailing yacht without any wind.
It looks great and stays afloat just fine … but it doesn’t ever go anywhere.
Sometimes a great value investment can stay at great value prices for far longer than you might like.
And that’s precisely the case for BorgWarner, whose shares haven’t budged in five years.
If you bought BWA shares on this day five years ago, you’d have an open gain of approximately 4% (before broker fees and taxes, of course).
Meanwhile, the same five-year investment in shares of Nvidia (Nasdaq: NVDA) would yield a 2,297% return.
Obviously, this is an extreme comparison.
But it also demonstrates the power of other critical factors — like momentum — and the importance of taking a more balanced approach to investing in today’s fast-moving markets.
The last debate on June 27 saw a historically disastrous performance from sitting President Joe Biden, who subsequently withdrew from the race — leaving Vice President Harris with just 100 days to make her case to American voters. Here’s what you can expect during (and after) Tuesday’s debate and why it may lead to an unexpected “October Surprise” for investors…
Buffett’s first investors were family and friends in his hometown in Omaha, Nebraska. If you were fortunate enough to invest $10,000 with him, it would now be worth over $370 million! That’s the reason Buffett is called the “Oracle of Omaha.” Both Berkshire A and B shares made an all-time high on Buffett’s birthday. Perhaps it was Mr. Market’s birthday present to Warren. The A shares closed at $715,000. Imagine just buying three shares back in the late 1980s when they traded for less than $1,800?
We all remember the Jetsons, the space-age cartoon family depicted in the classic 1960's cartoon. Well, the new crop of Humanoid robots makes Rosie the Robot look like my Roomba. These robots are intended to look like and mimic humans, which makes them a perfect fit for any workspace or home in our modern world. And recent advances in robotics and AI have spurned a whole new class of robots that could be headed for delivery in early 2025.
Until next time,
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