Automotive Dealership Industry 101

It is undeniable that one of the main parts of an investment thesis implies carrying out a sectorial analysis. Sometimes is rather difficult to forecast which direction a specific sector will follow, but at least it is absolutely essential to understand how the sector is structured, what the most relevant players are and what trends and risks could drive or derail its future performance.

I tend to include this analysis as part of my theses but this time I decided to follow a different approach. Actually I started as always, analyzing one specific company but rapidly realized that automotive dealership is a sector with many nuances and that it was preferably to dig deeper on it before focusing on any specific company. In that sense the idea of this article is to serve as an introduction for subsequent articles in which I expect to analyze concrete public companies within the sector.

Zooming Out Befo…