Ford Motor Company Capital Allocation Commentary

about 1 month ago

SPEAKER_03

"Ford, a business that I’d already mentioned that Julian really liked, was partaking in what he felt was some subpar capital allocation... He believed that if Ford sales were to plunge, a leveraged buyout could occur at around $77 per share, which, given its mid-single-digit PE multiple, presented a compelling risk/reward profile."

Robertson highlighted Ford as a recession-proof play with low downside due to potential LBO activity and attractive valuation levels. His criticism of Ford's capital allocation and emphasis on buybacks implies that investors might benefit from reassessing Ford’s valuation and governance practices.

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