Sometimes you get to the point when you’ve had enough and there seems to be no hope. Ford stock seems to go down on good news and bad and I’m tired of it. That is why I sold all 1500 shares this morning for a long term loss of $7,155.
You can read why I bought the shares in late 2014 and early 2015 here. I did have a gain for a short time but things have really gone downhill for the last two year and I’m done with it.
I collected $2,650 in dividend while I owned the stock so the loss isn’t quite as bad as it looks. But collecting a big 5.5% dividend (which Ford now pays) is no good if the stock price keeps going down by more than that.
A good article to read which summarizes the pros and cons of owning this stock going forward can be found here. There are reasons to hold it and reasons to sell it but for me, the reasons to sell seem stronger
I clearly now see that investors believe people will be buying fewer and fewer cars in the future. Ride sharing and autonomous vehicles will, they think, cut into the profits of car makers as future generations own less cars.
Is this correct? Is this already happening or if not, will this really happen in the future? I don’t know but it doesn’t matter: investors believe that will happen and Ford stock has suffered for that reason and others.
I think F will go down into the single digits soon and if it ever does turn around, it will take a lot longer than I am willing to wait. Sometimes things don’t turn out the way you think they will or you hope they will. In those cases, you just have to sell and move on. So I am.