2024-04-19 07:52:08 ET
Summary
- I am skeptical about investing in the EV market due to its risk profile and high degree of unpredictability.
- Aftermarket parts specialty retailers such as O'Reilly Automotive, though, offer a sustainable path for investors to compound their capital in the auto industry.
- The company seems well-positioned to sustain its outstanding sales growth, improving unit economics, and aggressive buyback track record.
- Thus, the stock forms a compelling investment case against the highly unpredictable EV stocks, prompting me to keep adding to my position.
My Brief View On EVs
To be frank, I've never been too keen on the EV market as an investor. The auto manufacturing industry, to begin with, is kind of ugly to me. Its razor-thin margins, intense competition, cyclical nature, and heavy CAPEX requirements have historically resulted in weak returns even from the rather high-quality players in the space....
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Forget EVs: Compound Your Returns With O'Reilly Automotive