Ford: A Value Investor's Poster Child

http://seekingalpha.com/article/426961-ford-a-value-investor-s-poster-child?source=feed

By Blake Ruddock:

We’ve all heard people reference Warren Buffett’s famous quotes, “if a business does well, the stock eventually follows” and “it’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” The big question is, how can we apply these Buffett-isms to our portfolios?

Well, I believe Ford Motor Company (F) is the poster child for both of these investing maxims; it is a wonderful company at a fair (if not undervalued) price due to its exceptional forward growth potential. Granted, it is difficult to find a fair valuation for the company right now, especially considering its hefty debt load ($82B in long-term debt) and the lasting effects of its near-failure only three years ago.

However, since its close scrape with bankruptcy along with industry peers GM (GM) and Chrysler, management has put the company on an intensive diet. The company sold

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