The Hidden Way to Profit From the Auto Boom

Updated

The following video is part of our "Motley Fool Conversations" series, in which industrials editor and analyst Brendan Byrnes and consumer goods editor and analyst Austin Smith discuss topics across the investing world.

In today's edition, Brendan and Austin discuss a hidden component play for the auto boom: Borg Warner. The company specializes in making turbochargers, dual-clutch transmissions, and other components that help make automobiles more fuel efficient. With upcoming CAFE standards forcing automakers to make their vehicles more fuel-efficient, Brendan sees Borg Warner experiencing huge growth over the next several years.

While Borg Warner looks like a solid pick with its big growth potential, our analysts have come across a different stock that has us so excited we can hardly contain our investing enthusiasm. This company has so much promise that we've dubbed it "The Motley Fool's Top Stock for 2012." We've created a special free report for investors to uncover this soon-to-be rock star. The report highlights a company that is revolutionizing commerce in Latin America, and you can get instant access to the name of this company by clicking here to download it now.

At the time thisarticle was published Austin Smith has no positions in the stocks mentioned above. Brendan Byrnes owns shares of Ford. The Motley Fool owns shares of Ford and Westport Innovations.Motley Fool newsletter services recommendBorgWarner, Ford, General Motors Company, Tesla Motors, and Westport Innovations. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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