Doug Casey on Cars—Past, Present and Future

Conversations with Casey (08/12/2009)
"I'd be much more prone to invest in a company that produces lithium, for example, because everyone's going to need it for car batteries. And that's true whether it's a government-run car company or an entrepreneurial company. That's because lithium batteries deliver the most power per weight of any battery technology on the market. So I'd be much more inclined to bet on something like a lithium explorer or producer than on a new car company.

Remember, Warren Buffett didn't become as successful as he is by buying every new start-up idea that comes along (in which everything that can go wrong usually does). He can't look at small companies because of the size of the assets he manages; but if he could, he wouldn't even think of them unless they fit Graham-Dodd parameters. That means they've got to have a solid balance sheet, five years of growing earnings, etc., etc. Buying into a new car company is pure pie-in-the-sky speculation, not investing."

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