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Motley Fool editorial: Toyota Doubles Down

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by jkash, Jul 26, 2004.

  1. jkash

    jkash Member

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    Toyota Doubles Down

    A couple years back, Fool contributor Matt Richey wrote a poignant warning against the perils of "doubling down" -- doubling your position in a stock already bought at one price after it had fallen to a lower price. (In Matt's case, he had doubled his position in Elan Pharmaceuticals as it fell from $13 to $10, but the topic of trying to catch "falling knives" has been written about often, with Nortel being used as one prominent example.)

    So doubling down on stocks, the prices of which are falling, can be risky. But what about doubling down on an investment thesis that has proven correct -- indeed, wildly successful? Car-making master of the universe Toyota Motors did just that last week when it announced that it will "significantly boost," and in all likelihood double, its production of the super-popular gas-electric hybrid Prius for the U.S. market.

    Read entire editorial by clicking this link.

    Jeff
     
    #1 jkash, Jul 26, 2004
  2. daniel

    daniel Cat Lovers Against the Bomb

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    In another article, the Motley Fool repeats the discredited assertion that hybrids cost more than comparable conventional cars (they compare Prius to Camry and assert that Prius is $5,000 more for comparable value!!!) and the even more preposterous assertion that money saved at the pump is the only reason to buy a hybrid.

    I've always been amused by their play on their name when discussing investing. "Foolish investors" meaning investors who follow their ideas about investing, but with the obvious double meaning. Are you a fool if you buy stocks at all? (My opinion is yes.)
     
    #2 daniel, Jul 29, 2004
  3. DonDNH

    DonDNH Senior Member

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    The Motley Fool, (TMF) differentiate between the words "Fool" and "fool"; where the uppercase Fool is usually investing with the philosophy of TMF and the lowercase fool is usually not. This main difference is that of the well informed investor versus the "hot tip", easy mark investor.

    Don't be foolish with your money; be Foolish.
     
    #3 DonDNH, Jul 29, 2004
  4. daniel

    daniel Cat Lovers Against the Bomb

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    I'm still amused. And of course, if you ever listen to their radio show, it's hard to hear the difference between "Fool" and "fool."

    Being "foolish" may be be more foolish than being "Foolish," and the Elizabethan fool often conveyed wisdom hidden in his foolisms, but I still think that even the most Foolish of investing is a bit foolish.
     
    #4 daniel, Jul 29, 2004
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