1 Surprising Stock to Buy for Global Diversification
Jul 31st 2012 1:25PM
Updated Jul 31st 2012 1:26PM
If asked about Tata Motors (NYS: TTM) , I'm willing to bet you that 99% of investors say something along the lines of "that Indian company with that really cheap car." While it's true that Tata Motors is most renowned for creating the $2,500 Nano, this automotive company boasts an increasingly impressive reach and vision that extends well beyond a car the price of a Macbook.
As I explained in a previous article, Tata Motors is taking advantage of shifting trends in the automotive sector by expanding its luxury vehicle and light truck businesses. It also enjoys a profitable bus business and is accelerating fast into the electric vehicle market (think Tesla Motors (NAS: TSLA) at 1/50th of the price). Tata Motors certainly has more to offer than just "that really cheap car."
Tata Motors takes its geographical diversification seriously. Its vehicles are sold in 129 countries across six continents, solidifying global market presence and protecting itself from regional demand shocks.
In the past decade, Tata has also expanded its manufacturing facilities across much of the world. Check out the slideshow below to understand why Tata is quickly becoming much more than "that Indian company."
Sources: Tata Motors 20-F and 2011-2012 annual report.
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The article 1 Surprising Stock to Buy for Global Diversification originally appeared on Fool.com.Fool contributor Justin Loiseau owns neither the stocks nor the vehicles mentioned in this article. You can follow him on Twitter @TMFJLo and on Motley Fool CAPS TMFJLo. The Motley Fool owns shares of Tesla Motors. Motley Fool newsletter services have recommended buying shares of Ford Motor and Tesla Motors, as well as creating a synthetic long position in Ford Motor. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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