Philip Saglimbeni

Lithia Motors: Dealing Cars To Consumers, Profits To Investors

With most of the hype in the automobile world, as it pertains to investing, going to innovative car manufacturers like Tesla Motors, Inc. (NASDAQ:TSLA) and the often underappreciated stalwarts of Detroit, Ford Motor Co. (NYSE:F) and General Motors Company (NYSE:GM), many investors overlook companies which own the dealerships that sell the actual cars on a daily basis. One such small-cap company, Lithia Motors Inc. (NYSE:LAD), has managed to thrive in the turbulent industry by focusing on a tried-and-true business formula and methodically expanding its business across the Mid-West. In doing so, shares of LAD have provided incredible five-year returns that best all of the aforementioned, including the seemingly unstoppable TSLA.

With relatively...

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